Victoria Resale Condo Market Splits as Higher-End Units Compete With Single Family Homes

Written by:

Rudi Davis

Date:

26 Feb 2026

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Victoria’s resale condominium market is divided between steady demand for entry-level units and slower sales at higher price points, according to Tony Joe, Team Leader and Broker-Owner of The PRIME Real Estate Team. Joe attributes this divide to competition from single-family homes that compete directly with upscale condos.

Elevated Inventory for Higher-Priced Condos

Resale condos in Victoria are experiencing more listings and longer days on market, especially in the mid-range and luxury segments. Joe notes, “The condo market is softer. There’s a good amount of opportunity out there for buyers, but it’s harder for sellers to sell their resale condos.” He points out that this slowdown is concentrated among higher-priced units, while entry-level condos are still moving.

Not all condos face the same challenges. Entry-level units continue to attract first-time buyers, many of whom have limited choices due to high single-family home prices. “Entry-level market works well, because that’s how people get into the real estate market,” Joe says. “But there’s a lot of higher-end condos out there that are struggling right now.”

Competition Between Luxury Condos and Single-Family Homes

The difficulty for higher-priced condos comes from direct competition with detached homes at similar price points. Joe explains, “At a higher price point, they’re also competing with houses. So you could buy a house or a luxury condo.” Buyers with budgets of $800,000 or $1 million can choose between a centrally located condo and a single-family home farther out that offers land, no strata fees, and greater control.

This choice fragments the pool of buyers for luxury condos. Many opt for the independence and potential of a detached house, even if it means a longer commute or a smaller space. As a result, higher-priced condos attract a smaller, more selective group of buyers. “Sellers do better when they don’t have much competition around, but when there’s a lot of choices out there, that’s why it is harder for sellers,” Joe says.

Why Entry-Level Condos Continue to Sell

Entry-level condos avoid this issue because they serve buyers who have no realistic alternative. First-time buyers in Victoria generally cannot afford detached homes, so starter condos remain their only path to ownership. This supports steady demand for lower-priced units, even as higher-end condos face slower sales.

Joe’s experience suggests that the entry-level condo market behaves as a distinct segment, insulated from the pressures facing more expensive properties. Developers and investors focusing on starter condos are likely to see continued demand. In contrast, those targeting higher price points face more risk, as their products compete directly with an expanding range of housing options.

However, this split market could create problems for condo owners hoping to move up. If higher-priced resale condos are slow to sell, owners of entry-level units may find it difficult to realize gains and transition to larger properties. This lock-in effect could reduce overall housing mobility and transaction volume.

Impact of British Columbia Bill 44 on Condo Competition

Recent legislation is adding another layer of complexity. British Columbia’s Bill 44 requires municipalities to allow greater density. This has prompted the conversion of single-family homes into four- or six-unit properties. “We’re seeing a lot of residential single-family homes being converted into four or six-unit properties,” Joe says.

It remains to be seen whether these new fourplex units will find buyers. Joe points out, “It’s early days yet, though, because what we haven’t seen is whether there’s a market for these out there in the open market. They haven’t sold, is what I’m saying.” If these units prove popular, they could become another competitor for resale condos. They would offer buyers a smaller building, lower strata fees, and newer construction, even if the location is less central.

Joe suggests that the viability of fourplex conversions will depend on buyer response. If these properties start selling, small developers may pursue this model more aggressively. “When we start seeing that particular market, then it’ll prove to small developers that there is a potential there for a business model, and we might see more of that as well,” he says.

Should fourplex units gain traction, they could draw buyers away from mid-range condos. A purchaser comparing a resale condo to a new fourplex unit may prefer the latter for its lower fees, smaller scale, and modern features, further reducing demand for older condos.

What the Market Shift Means for Owners and Developers

The current challenges for higher-priced resale condos carry clear implications for both owners and developers. Owners who bought with expectations of appreciation may face longer selling timelines and lower-than-expected prices, especially if their units compete directly with single-family homes.

For developers, the split market signals that new projects should focus on entry-level condos, where demand remains consistent, or offer features that clearly distinguish their higher-priced units. Luxury condos that compete primarily on price with detached homes risk sitting unsold unless they deliver superior location, amenities, or other advantages that houses cannot provide.

Joe’s observations also cast doubt on the long-term prospects of the mid-range condo segment. If buyers with larger budgets consistently choose single-family homes or fourplex units, mid-tier condos may remain oversupplied, leading to price stagnation and limited developer interest in that category.

Geographic Limits and Housing Density in Victoria

Victoria’s unique geography adds another dimension. Joe notes the city’s population has more than doubled to 420,000 since he began his career, but expansion is limited by the city’s location at the southern tip of Vancouver Island. “We are a growing town with no expansion room because we’re at the southern tip of an island and we don’t have room to move outwards,” he says.

This land constraint means that increasing density is the only way to accommodate growth, which, in theory, should support condo demand. However, Joe’s experience suggests that simply building more condos does not guarantee strong sales if buyers prefer other options at similar prices. The fourplex model, enabled by Bill 44, offers a possible middle ground between single-family homes and large condo buildings. If it catches on, it could shift the balance of Victoria’s housing market and further challenge traditional condos.

Outlook for Victoria Resale Condos

Joe describes Victoria as “a very strong long-term investment” due to its limited land and steady population growth. But the current market shows that these fundamentals do not benefit all property types equally. Entry-level condos are likely to remain in demand, while higher-priced resale condos may need to adjust pricing or wait for market conditions to improve. For both owners and developers, success increasingly depends on aligning with the segments where demand is strongest and being prepared for a market in which competition from alternative housing forms is only growing.