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Jason Thomas BCom
Royal Lepage Summit Realty
2611 Ellwood Dr S.W., Edmonton, Alberta
P: 780.499.5696
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Monday, April 22, 2013 - Edmonton Condo Fees

Edmonton Condo Fees

When buying a condo, buyers often wonder about condo fees.  The questions I often hear are if the condo fees ever come down and how much do the fees normally go up.   I thought some statistics on what Edmonton condo fees have increased over the last few years would help.  I looked at the Oliver area of Edmonton for 2 bedroom or more condo units that are in high rise buildings.  I looked at Oliver as this area has a good number of sales (larger sample size) and Oliver is an area with a high concentration of high rise condos in Edmonton.  The average condo fee back in the first quarter of 2006 was $412 per month.  Looking at the average condo fee per square foot, the number is $0.35/square foot. 

In the first quarter of 2013, the average condo fee is now at $569.50/month.  That works out to $0.45/square foot.  That is an increase of 28% per square foot over 7 years or less than 4% per year compounded.  The average sale price per square foot in Oliver has moved from $172/square foot to $295/square foot, a 71.5% increase in prices.  So, the condo fee has certainly went up but not as much as the property values have.  The condo fees almost always do rise, I have not seen any condos that have a steadily falling fee, the fee may be flat for a few years but normally not declining.  The cost of utilities and inflation will cause the condo fee to rise.  The reason a condo fee jumps up more than the average is normally due to a surprise expense for the building, or a mismanaged building that has kept the fees too low for too long and are now playing catch up. 

Edmonton Condo fees



The condo fees in the older high rise buildings tend to be higher than in newer buildings.  This generally isn't because the condo building is in worse condition, but is normally due to the fact that an indoor swimming pool is located in the condo.  Many of the older buildings have swimming pools, hot tubs and exercise facilities.   These features are great to have but they are very expensive to run.  That is why you hardly see any new condos built with pools anymore.   The developers of condos often tell the prospective buyers that it is less costly to buy a gym membership than to have that extra cost in your condo fee each month.  I hope that gives you a better understanding of Edmonton condo fees.

 

posted in Edmonton Real Estate Market Reports by Neighbourhood at Mon, 22 Apr 2013 19:49:00 +0000



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