A growing volume of unsold one-bedroom homes in downtown Victoria’s condominium market has created a scenario not seen in years, according to a Victoria realtor that has been closely monitoring local real-estate trends. 

 

Slow sales, falling prices and lukewarm demand for smaller units in the city centre has many sellers considering their options, including price breaks and malleable terms that may present a rare entry point for first-time and downsizer buyers in search of entry level units, says Ryan Cook (see website), an agent with local brokerage Remax Camosun.

 

“We have not seen conditions quite like this in the downtown condo market in a long time, where buyers are holding much more bargaining power than sellers,” Cook says, adding that “when looking at the re-sale data available via the Multiple Listings Service, this spring and summer appear to be poised for negotiation and opportunity.”

 

According to MLS data, the average days on market for one-bedroom inventory sold through the listings service between mid-2024 and April of this year is just under 40 days, with approximately $465,000 as the average price paid. Currently 109 listings are active for one-bedroom units. Back in 2022, prices drew a $521,000 average at just 19 days on market, representing an 11% price drop compared to today’s average.

 

Cook says a variety of factors have led to a growing number of listings on the market since last summer, such as rising carrying costs and taxes for investors, and the clampdown on investor-owned short-term rentals popularized by the AirBnB platform.

 

“The AirBnB ban initiated by the province and supported by municipal officials has forced many operators to abandon the idea of short-term rentals, and not wanting to place their holdings onto the full-time rental market due to mortgage and operating costs, many have opted to sell. The problem for sellers today, is if they purchased an asset that was once valued higher because of AirBnB zoning, they may be unable to sell at the same price, let alone at a profit. This is where strong offers by motivated buyers can lead to real opportunity if a seller must liquidate,” Cook says.

 

Placing additional pressure on the downtown condo market is the state of the area’s social issues sparked during the COVID-19 era and fanned by policies of prior administrations. The City’s current council has taken action in an attempt to reverse trends that have impacted Victoria-proper more than neighbouring municipalities. The current council’s agenda calls for other districts in the Capital to share in the provision of social services, and restrictions on camping in municipal parks. The City is also working on cleaning up the 900-block of Pandora Avenue where a significant volume of social agencies and people reliant on social services have historically clustered.

 

Chard Development's Nest condominium tower is the newest homeownership project to complete in Victoria's downtown core. The concrete tower features a variety of floor plans, price points and has multiple amenities for residents.  Ryan Cook

 

Even the province – recognizing how its policies on housing as investment, foreign capital in the real-estate market and vacation-style ownership, have negatively impacted absorption rates of housing and lessened the viability of new-build projects – has signalled it may repeal or adjust its policies to better balance the needs of owner-occupiers in high-demand real-estate markets to entice investors back into said markets and avoid further inventory stagnation (or postponement of pre-sale offerings that are currently impacting jurisdictions like Victoria’s core).

 

And with the above lies the chance for a deal today, that could pay off tomorrow, Cook believes.

 

“We could potentially see a reversal of some of the changes the province implemented over the last several years, such as stringent AirBnB bans, bans on foreign buyers, and even tenancy regulations that some advocates say limit interest in the renting out of suites by investors. If the province is serious about its intent to review its current rules, that could lead to a revival of challenged markets as investors once again see a viable path to real-estate investment,” Cook said. “And when you couple this with what the City of Victoria is doing to unwind some of the questionable policies of prior administrations, what this could all mean is the lower prices we see today, and the opportunities to make strong offers, could dramatically change as more buyers return to the bargaining table.”

 

Cook notes that first-time buyers vying for condominiums as their ownership entry point have multiple tools at their disposal in today’s market that were not available in prior periods, such as no GST payable on most one-bedroom new-build units, no property transfer taxes on most one-bedroom-sized listings, and federal affordability programs to help bridge the leap between renting and homeownership. And relevant to newly constructed inventory, such as the recently occupied Nest, Haven and Mod towers (plus other completions in recent years), the suites qualify for 2-5-10 home warranty programs that protect homebuyers even if re-sold to a new owner, giving buyers peace of mind. Another benefit is equity, which starts building faster without the added taxation, and as most homes are built out of concrete, structural longevity plays into the equation, too.

 

Additionally, modern towers and lowrise condominiums often include a wide array of amenities for residents that can help sustain re-sale value by adding exclusive perks, services and shared spaces like rooftop lounges, games rooms, dog walks, gyms and co-working offices.

 

The downtown market, meanwhile, continues to unwind form several years of former municipal policies and is seeing a significant influx of investment capital targeted at rental homes, office construction and urban renewal. Currently underway in the city centre are multiple highrise residential towers with ground floor amenities like retail and restaurant spaces, and Telus Ocean is quickly rising on Douglas Street at Humboldt Street to join the city’s stock of Class-A office towers. Established and well-capitalized developers like Chard Development, Townline, Jawl Properties, Starlight Developments and Reliance Properties have all placed big bets on the downtown core, with plans to deliver thousands of rental residences, hotels, condominiums and offices between now and into the 2030s.

 

Looking towards Vic West's Promontory and Bayview 1 towers, from downtown Victoria. The Pearl condominium is at-left, and Mermaid Wharf condominium is at-right.  Ryan Cook

 

“As we work our way out of a low demand dip for downtown homes, we can see potential building with hundreds of millions of dollars of investor capital earmarked for Victoria’s core that will pay dividends in the years to come,” Cook said.

 

Cook adds that despite the current lull in an otherwise bullish sub-market, the Capital’s population growth and its destination for professionals lends to overall stability for homebuyers. High demand for south Island homes in general has sustained Victoria’s real-estate through multiple market cycles, and thanks to the city’s employment base being so heavily interwoven with government services and the military, long-term, well-paying and stable jobs mean homebuyers tend to view the region as an investment safe haven.

 

As an aside, 2025 market data for two-bedroom sold units in the downtown core shows an average sale price of just over $812,000 at a 50-day average on the market. In 2022, the average period on the market was 27 days, at an $818,000 average. This illustrates the pronounced valuation drop specific to one-bedroom inventory. C

 

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