A Vancouver penthouse recently sold far under its assessed value and even further under the price it was last sold for.
PH3602 at 838 West Hastings Street sold earlier this week for $4,000,088, according to Zealty.
That’s nearly $500,000 under the assessed value of $4,499,000. It also sold under the asking price, which was $4,419,000. When it last sold in 2017, it sold for almost $1.2 million more than this sale ($5,250,000).
So why’d this penthouse suite, with extremely impressive views of downtown Vancouver, fail to sell at a higher value?
Well, penthouse, it’s not you — it’s the market.
Engel & Volkers Vancouver
This three-bedroom, three-bathroom apartment features a private rooftop terrace, 3,203 sq ft of space across two levels, and floor-to-ceiling windows.
The impressive views include the ocean, North Shore mountains, and the concrete jungle of downtown Vancouver.
Engel & Volkers Vancouver
Other features include top-of-the-line appliances, an espresso maker, remote shades, and an automated parking system.
Engel & Volkers Vancouver
The listing calls the unit a “private oasis with everything you need at your doorstep.”
Engel & Volkers Vancouver
So, why didn’t this penthouse sell for more?
We’ve done several reports on the luxury market in Vancouver over the last few months, and several factors are currently impacting it.
A recent Royal LePage report analyzed sales in the luxury sector over the last year. While this penthouse doesn’t technically qualify as a “luxury property,” as Vancouver’s entry-level luxury property price is $5,500,000, it’s close.
Since 2015, the highest this property has been assessed is $5,869,000 in 2017.
Royal LePage’s report says that sales activity in the luxury sector has dropped by 38.8% since the beginning of the year. The main takeaway is that buyers are waiting for prices to drop, which is precisely what happened in the case of this penthouse suite.
We’ve seen the same situation with mansions around Vancouver.
Do you think the property is worth what it sold for?