Many homebuyers know that a house depreciates over time.

Meanwhile, the land on which a residence was built becomes more valuable as time passes.

And because of limited supply, land becomes even more precious with increased demand because of population growth.

A couple of recent deals in Vancouver illustrate this lesson.

Located on the east and west sides of the city, the two properties each sold around $700,000 over their respective asking prices.

Let’s start with the home at 1260 East 54^th Avenue, which has a 2021 assessed value of $2,062,800.

Per B.C. Assessment, the value is mostly in the 66- by 142.38-foot lot at $2,047,000.

Meanwhile, the one-storey home is worth $25,800.

The property was listed on December 1 this year, and interestingly, its asking price of $1,999,900 was below assessment.

“A rare building opportunity,” declared the listing for the Vancouver corner lot.

It’s located between Fraser and Knight streets, where one can build their “dream home”.

“Value is mostly in the land,” the listing noted about 1260 East 54th Avenue.

Seven days later on December 8, the property sold for $2,700,018.

That’s $700,118 over the asking price.

Change some of the details, and it’s the same tale for 2181 West 20^th Avenue.

Per B.C. Assessment, the property has a 2021 assessed value of $2,917,200.

The 50- by 122-foot lot gets most of the value at $2,886,000.

Meanwhile, the one-storey home is valued only at $31,200.

On November 24 this year, the property was listed, and like the previous example, the asking price was below the 2021 assessment.

The list price was $2,598,000.

“Call your builders!” the listing stated.

The text also noted a “huge opportunity to build your dream home” in the desirable neighbourhood of Arbutus.

Sixteen days later on December 10, the property at 2181 West 20th Avenue sold for $3,280,000.

Compared to its asking price, that’s $682,000 over.