The Nanaimo land market is currently navigating a period of equilibrium - What Does That Mean For Land Buyers & Sellers?
The Nanaimo land market is currently navigating a period of equilibrium, with indicators suggesting a balanced environment for both buyers and sellers.
📈 MARKET FUNDAMENTALS – LAND IN NANAIMO
🔍 Absorption Rate (Land Specific)
The absorption rate across the Nanaimo market in early 2025 is sitting around 15–16%, classifying it as a balanced market.
A rate below 12% would suggest a buyer’s market, and above 20% would suggest a seller’s market.
This level shows steady but not frenzied interest in land parcels, especially those zoned for multifamily or infill development.
📊 Market Snapshot – April 2025
Absorption Rate: Approximately 15–16%, indicating a balanced market where supply meets demand.
Inventory Levels: Around six months of inventory, suggesting a stable market without significant pressure on prices.
Average Sale Price (Single-Family Homes): Approximately $852,497 in March 2025, consistent with the previous year.
💰 AVERAGE LAND PRICES – Q1 2025
Land is a finite resource, and on Vancouver Island, it’s getting tighter by the year.
📍 Average Listing Price per Acre (Residentially Zoned Land)
Urban-Serviced Lots (under 0.25 acres): $315,000 – $550,000
Acreage (2–5 acres, unserviced): $425,000 – $875,000
Waterfront/Prime Developable Parcels: $900,000+
📊 Price Per Square Foot (Listed vs Sold)
Average Listed: $31–$38/sqft (depending on zoning and proximity to city core)
Average Sold: $28–$34/sqft
→ Indicates modest negotiation room, but most sales close within 92–96% of list price.
💰 Land Pricing Trends
Listing Prices: Land listings in Nanaimo vary widely, with prices starting at $199,000, depending on location, size, and zoning.
🏗️ LAND DEMAND DRIVERS
Multifamily Development: Demand for RM-zoned land near transit corridors or town centres has increased post-2023 due to BC’s push for densification.
Vacant Lots Near Hospitals & Schools: High demand from custom home builders and downsizing retirees.
Industrial Land (Nanaimo Parkway & Duke Point): Limited inventory; prices are spiking due to zoning restrictions and port proximity.
📦 INVENTORY SNAPSHOT
Months of Inventory (MOI): ~6.3 months for residential land
New Land Listings (Q1 2025): Up 11% YoY, reflecting more investor activity and flippers exiting
Time on Market: Median of 54 days, longer for raw, unserviced parcels (70+ days)
💡 MARKET INSIGHT
“Buy land—they're not making any more of it.”
That’s not just a cliché on the Island—it’s gospel.
🧠 For Sellers:
If you own serviced land in Nanaimo’s growth areas (North Jingle Pot, Departure Bay, Hammond Bay), this is a golden time to list.
Developers are actively hunting infill opportunities—particularly with the recent municipal nod toward higher density zoning.
🔍 For Buyers:
The relative stability in pricing and lack of extreme bidding wars offers a rare chance to negotiate land acquisitions.
Investors looking to landbank should consider subdividable parcels in areas with upcoming infrastructure investments (like the Harewood and Chase River zones).
📉 RISKS & CONSIDERATIONS
Interest Rates: Although stable for now, any spike could make holding raw land less attractive due to carrying costs.
Servicing Costs: Raw land might look cheap—but costs to bring in water, sewer, and hydro can add $80K–$200K depending on the site.
Speculation Tax: Landowners holding non-primary vacant land should be aware of the Speculation & Vacancy Tax (SVT) implications.
🔍 SUMMARY – SHOULD YOU BUY OR SELL LAND IN NANAIMO?
🏡 SellersIf you have a parcel that’s ready or near-ready to develop—list now. Developers are circling. ✅ Immediate
📈 BuyersGreat time to negotiate strategically in a stable market. Look at zoning potential and long-term value. ✅ Next 3–6 months
💼 Investors Land banking still viable—focus on municipal plans for future density and access. 🔁 Mid-term (1–3 years)
In summary, Nanaimo's land market is characterized by stability, with balanced supply and demand dynamics. This environment provides opportunities for both buyers and sellers to engage in transactions that align with their investment goals.
