John Mackie
The Vancouver Sun

Recently a developer approached the strata council of 1188 Cardero in the West End of Vancouver about buying the property.

As part of the city’s West End plan, the site has been rezoned for a building up to 190 feet tall. And the real estate sharks are circling.

“I’m going to say we’ve talked to five brokers and maybe four developers in the last two months,” said Jeff Otto, a member of the building’s strata council.

“I think the writing was on the wall, when you look at the neighbourhood. You’ve got two towers going up in the Safeway (site) across from us on Davie, (and) there’s a tower going up in the London Drugs (site) across from the Safeway.

“Down the street there’s a tower going up where the Mac’s is at Bidwell and Davie, and up the street at Jervis (and Davie) there’s a tower going up there as well.”

The towers are springing up as part of the 2013 West End plan, which seeks to add 10,000 people to the neighbourhood.

Many of the newcomers are to be housed in towers on or around Davie, West Georgia and Burrard. Depending on the site, you can build between 190 and 550 feet into the sky.

The plan calls for 20 to 25 per cent social or rental housing on many of the new projects. Some are pure rental buildings, but many of the towers seem to be developing as high-end condos, selling for upwards of $1,000 a square foot.

The catch is, developers usually have to buy existing buildings in order to get a site.

“Generally speaking, there’s no land left in the city,” said Kirk Kuester of Colliers International. “There’s no land left to develop in the areas in which developers are focused, which are the more urban markets where there’s lots of demand for end-product to either buy or rent. (So) you have to re-purpose a site.”

In the past it was hard for developers to buy entire strata buildings, because it was difficult to get 100 per cent of the owners to sign off on a deal.

But the provincial government is bringing in new rules that allow a strata building to be sold if 80 per cent of owners agree to a sale. It has yet to be enacted into law, but developers have been rushing in to try to lock up sites.

Some buildings have already been sold, like two rental apartment blocks at 1070 and 1080 Barclay, which sold for $59 million in January. Two other rental apartment blocks, 1059 and 1075 Nelson, went for $60 million in March.

Prices have been rising quickly. Wall Financial paid $16.8 million for 1059 and 1075 Nelson in Sept., 2013, but 30 months later sold it for $60 million to Suncom, a controversial company that has been pooling resources from wealthy Chinese immigrants.

Ian Young of the South China Morning Post found Suncom had flipped the properties to another wealthy immigrant, Gao Shan, for $68 million. Which means two nondescript three-storey walk-ups increased in value 400 per cent in two-and-a-half years.

The size of the current building isn’t what matters, it’s what can be built on the site. The Nelson properties are in an area where you can build up to 550 feet, so the price soared.

“It’s based on a price per buildable foot,” said real estate broker Eugen Klein.

“That price per buildable foot then converts into what each individual owner (in a strata or co-op) will get. Typically you’re seeing some pretty high prices, especially for the more prominent towers and places that will have water or park views that developers want.”

Klein is among the brokers that have made a pitch to represent the owners of 1188 Cardero. (A broker would represent the owners in the negotiations with developers.)  

“We typically do all of the pro-formas on behalf of the clients, so that they’re as informed as the developer, and then translate that into what they can take home and see as a valuation,” said Klein.

Figuring out what can be built can be tricky, because of the city’s complex zoning rules. There are 27 “view corridors” where the city limits the height of towers to protect views of the North Shore mountains and Downtown, and many of them pass through Downtown and the West End.

Another factor is the shadow a tower would cast on neighbouring buildings.

“We represent the owners at 1075 Barclay,” said Klein. “That’s a highrise site, (which has) up to about a 550-foot height potential on their tower. But when you add the shadow corridors and all the other (city) requirements, setbacks and building plates, it’s probably closer to the 420 mark.

“So 420 feet will be what’s actually allowable. There’s this whole process of making sure you align the owners into what’s realistic, not what’s written on the zoning code, or what’s potential.”

For strata or co-op owners, the advantage of selling is that you can sometimes get $1 million or more for a unit that might be appraised for half that on the market. This can be appealing, especially for buildings that are in need of repairs.

The problem is you might have a hard time getting another place in the West End. West End realtor Rob Joyce said offshore investors have been snapping up condos that allow rentals, and many locals are having a hard time getting back into the market if they sell.

“I had a client who had up to $700,000 for a one bedroom, and it took me over four months to find her something,” said Joyce. “A one bedroom in the West End, and she had up to $700,000 to spend. And I eventually sold her a co-op, because co-ops have rental restrictions.”

Kuester said land values in certain areas have been soaring.

“In simple terms, valuations for condominium land have gone from $200 to $250 maybe 12-to-18 months ago to upwards of $450-$550 a foot, a buildable foot,” he said.

“I’m generalizing …(that’s) along Broadway, the west side, Vancouver downtown. Some are going to be higher, some are going to be lower. But that’s a metric where you can say that’s a pretty good generalization of the market.”

This is for pure land value — the cost of building would go on top.

“Essentially the land or density associated with any new unit today, a 700 foot unit in a new building, would have land (costs) associated with it of $500 a buildable foot,” said Kuester.

“(So) if it’s 700 sq. ft, the land could be worth $350,000. If it’s a thousand foot unit — and nobody’s building that — that would be worth $500,000.”

As a result, the new towers going up will probably be high end. Just how high end is anyone’s guess, because values have been soaring.

“There’s a big debate in the market as to where end values for good quality condo products stops,” said Kuester.

“You can look at buildings like One Burrard, (the) nicest building I would say announced in Vancouver in recent time. Gillespie’s Vancouver House would have been the one previous.

“So Gillespie sets the price at whatever he did, $1,000 a foot on average. Everyone went ‘Wow! Unbelievable!’ Then Reliance and Pattison come out with Burrard One, and it was whatever, $1,050 or $1,100.

“Today there’s a site that is just going to come to market. It’s what I would call a commodity site on the Downtown peninsula, nowhere near the quality of Burrard One or Vancouver House, and it’s going to come out at $1,200 a foot.

“There’s people saying the West End is going to go to $1,300, $1,400, $1,500 a foot. Certain west side markets are going to go to $1,200 or $1,300 a foot. Because that’s what it’s going to cost, that’s where the (condo) values need to be to support the acquisition of the sites that are needed.”

The competition for sites is intense, and any building in the area that has been rezoned is probably in play, no matter the age or shape. The four-storey strata building at 1188 Cardero, for example, was built in 1988, while the seven storey strata at 1075 Barclay was built in 1992.

“It’s created all sorts of complications and disruptions for owners and occupiers of apartment buildings, co-ops, and condominium buildings,” said Kuester. “Because the values of these sites as development sites are now greater than the value of the individual units.”

© 2016 Postmedia Network Inc.

Gastown plan draws heritage worries

JOHN MACKIE
The Vancouver Sun

The New Fountain Hotel was built at 27 West Cordova in Gastown in 1899, when Vancouver was booming as a supply centre for the Klondike Gold Rush. Like many structures of the day it was quite modest, a two-storey building with a bar on the main floor and rooms above.

It may not be around for much longer. A proposal would see the building demolished except for its facade, and a new 11-storey building with social and rental housing built on the site.

The three-storey 1906 Stanley Hotel next door would be demolished and turned into a facade in the same redevelopment. Both buildings are listed on the national register of Canada’s Historic Places. The new building would be 110 feet high, which exceeds Gastown’s 75-foot maximum. This troubles Gastown resident Carol Sill, who is on the Gastown historic area planning committee.

Last year, the committee turned down several proposals for redevelopments of historic buildings on Water Street. The committee hasn’t been presented with the New Fountain/Stanley proposal yet, but the plans were unveiled to the public at an open house this week in the Woodward’s complex.

“Eleven storeys on top of a heritage building is a bit of a stretch,” said Sill. “Speaking individually, I think it overpowers the small buildings. (The site) does need improvement, we know that it has to expand and improve. But I do not like to see a large building proposal subverting our long-standing heritage guidelines. We just had the unveiling of the plaque (for Gastown) being named a National Historic District. It seems like a disconnect.”

Gastown resident Glenda Bartosh agreed. “It’s too high, and it’s too massive for Gastown,” said Bartosh. “Our precious little Gastown has such a small footprint, every building that exists here that is historic should be maintained as buildings, not facades. Facadism does not work in historic areas. People understand that that’s a false front, and these two buildings are really, really important historic buildings.”

Sill is also concerned that the development would include a 15,000sq.-ft cabaret in the basement.

“They already have a liquor licence for a smaller bar, but my understanding is that they’re seeking more, 600 seats,” said Sill.

“Which would totally devastate the atmosphere of the area, because it would draw people from everywhere. It would be a Granville Street kind of environment, and that’s really out of scale.”

The proposed building is a partnership between one of Vancouver’s largest developers and the provincial body in charge of social housing. “B.C. Housing has partnered with Westbank to deliver an affordable rental building with both social housing and low end of market rental housing,” said Rajvir Rao of B.C. Housing in an email. “B.C. Housing will own the former and Westbank the latter, under covenant with a City of Vancouver housing agreement that the units serve an affordable housing purpose.”

There would be 214 units in the complex, 80 dedicated to social housing and 134 to “secured market rental.”

The social housing would have a separate entrance from the market housing. The design by Henriquez Partners architects shows three chic modern buildings rising behind the historic facades.

Sill questions whether they’re a good fit for Gastown.

“We don’t want it to look like faux heritage, but we don’t want it to look so modern that it’s out of scale,” she said.

“There’s no way that addition can be unseen.                                        

“From any direction, in any sight line, you’re looking at that grand addition.”

© Copyright (c) The Vancouver Sun

NEIGHBOURHOOD DENSIFICATION ENERGIZES REAL ESTATE MARKET

JOHN MACKIE
The Vancouver Sun

Recently, a developer approached the strata council of 1188 Cardero in the West End of Vancouver about buying the property.

As part of the city’s West End plan, the site has been rezoned for a building up to 190 feet tall — and the real estate sharks are circling.

“I’m going to say we’ve talked to five brokers and maybe four developers in the last two months,” said Jeff Otto, a member of the building’s strata council.

“I think the writing was on the wall, when you look at the neighbourhood. You’ve got two towers going up in the Safeway (site) across from us on Davie, (and) there’s a tower going up in the London Drugs (site) across from the Safeway.

“Down the street there’s a tower going up where the Mac’s is at Bidwell and Davie, and up the street at Jervis (and Davie) there’s a tower going up there as well.”

The towers are springing up as part of the 2013 West End plan, which seeks to add 10,000 people to the neighbourhood.

Many of the newcomers are to be housed in towers on or around Davie, West Georgia and Burrard. Depending on the site, you can build between 190 and 550 feet into the sky.

The plan calls for 20 to 25 per cent social or rental housing on many of the new projects. Some are pure rental buildings, but many of the towers seem to be developing as high-end condos, selling for upwards of $1,000 a square foot.

The catch is, developers usually have to buy existing buildings in order to get a site.

“Generally speaking, there’s no land left in the city,” said Kirk Kuester of Colliers International. “There’s no land left to develop in the areas in which developers are focused, which are the more urban markets where there’s lots of demand for end-product to either buy or rent. (So) you have to repurpose a site.”

In the past it was hard for developers to buy entire strata buildings, because it was difficult to get 100 per cent of the owners to sign off on a deal.

But the provincial government is bringing in new rules that allow a strata building to be sold if 80 per cent of owners agree to a sale. It has yet to be enacted into law, but developers have been rushing in to try to lock up sites.

Some buildings have already been sold, such as two rental apartment blocks at 1070 and 1080 Barclay, which sold for $59 million in January. Two other rental apartment blocks, 1059 and 1075 Nelson, went for $60 million in March.

Prices have been rising quickly. Wall Financial paid $16.8 million for 1059 and 1075 Nelson in September 2013, but 30 months later sold it for $60 million to Suncom, a controversial company that has been pooling resources from wealthy Chinese immigrants.

Ian Young of the South China Morning Post found Suncom flipped the properties to another wealthy immigrant, Gao Shan, for $68 million. That means two nondescript, three-storey walk-ups increased in value 400 per cent in two-and-a-half years.

The size of the building isn’t what matters, it’s what can be built on the site. The Nelson properties are in an area where you can build up to 550 feet, so the price soared.

“It’s based on a price per buildable foot,” real estate broker Eugen Klein said.

“That price per buildable foot then converts into what each individual owner (in a strata or co-op) will get. Typically you’re seeing some pretty high prices, especially for the more prominent towers and places that will have water or park views that developers want.”

Klein is among the brokers that made a pitch to represent the owners of 1188 Cardero.

(A broker would represent the owners in the negotiations with developers.)

“We typically do all of the proformas on behalf of the clients, so that they’re as informed as the developer, and then translate that into what they can take home and see as a valuation,” Klein said.

Figuring out what can be built can be tricky, because of the city’s complex zoning rules.

There are 27 “view corridors” where the city limits the height of towers to protect views of the North Shore mountains and Downtown, and many of them pass through Downtown and the West End.

Another factor is the shadow a tower would cast on neighbouring buildings.

“We represent the owners at 1075 Barclay,” Klein said. “That’s a highrise site, (which has) up to about a 550-foot height potential on their tower. But when you add the shadow corridors and all the other (city) requirements, setbacks and building plates, it’s probably closer to the 420 mark.

“So 420 feet will be what’s actually allowable. There’s this whole process of making sure you align the owners into what’s realistic, not what’s written on the zoning code, or what’s potential.”

For strata or co-op owners, the advantage of selling is you can sometimes get $1 million or more for a unit that might be appraised for half that on the market. This can be appealing, especially for those in buildings in need of repairs.

The problem is you might have a hard time getting another place in the West End. West End realtor Rob Joyce said offshore investors have been snapping up condos that allow rentals, and many locals are having a hard time getting back into the market if they sell.

“I had a client who had up to $700,000 for a one-bedroom, and it took me over four months to find her something,” Joyce said. “A one-bedroom in the West End, and she had up to $700,000 to spend. And I eventually sold her a co-op, because co-ops have rental restrictions.”

Kuester said land values in certain areas have been soaring.

“In simple terms, valuations for condominium land have gone from $200 to $250 maybe 12-to-18 months ago to upwards of $450$550 a foot, a buildable foot,” he said.

“I’m generalizing …(that’s) along Broadway, the west side, Vancouver downtown. Some are going to be higher, some are going to be lower. But that’s a metric where you can say that’s a pretty good generalization of the market.”

This is for pure land value — the cost of building would go on top.

“Essentially the land or density associated with any new unit today, a 700-foot unit in a new building, would have land (costs) associated with it of $500 a buildable foot,” Kuester said.

“(So) if it’s 700 sq. ft, the land could be worth $350,000. If it’s a thousand-foot unit — and nobody’s building that — that would be worth $500,000.”

As a result, the new towers going up will probably be high end. Just how high end is anyone’s guess, because values have been soaring.

“There’s a big debate in the market as to where end values for good quality condo products stops,” Kuester said.

“You can look at buildings like One Burrard, (the) nicest building I would say announced in Vancouver in recent time. Gillespie’s Vancouver House would have been the one previous.

“So Gillespie sets the price at whatever he did, $1,000 a foot on average. Everyone went, ‘ Wow! Unbelievable!’ Then Reliance and Pattison come out with Burrard One, and it was, whatever, $1,050 or $1,100.

“Today there’s a site that is just going to come to market. It’s what I would call a commodity site on the Downtown peninsula, nowhere near the quality of Burrard One or Vancouver House, and it’s going to come out at $1,200 a foot.

“There’s people saying the West End is going to go to $1,300, $1,400, $1,500 a foot. Certain west side markets are going to go to $1,200 or $1,300 a foot. Because that’s what it’s going to cost, that’s where the (condo) values need to be to support the acquisition of the sites that are needed.”

The competition for sites is intense, and any building in the area that has been rezoned is probably in play, no matter the age or shape. The four-storey strata building at 1188 Cardero, for example, was built in 1988, while the sevenstorey strata at 1075 Barclay was built in 1992.

“It’s created all sorts of complications and disruptions for owners and occupiers of apartment buildings, co-ops, and condominium buildings,” Kuester said. “Because the values of these sites as development sites are now greater than the value of the individual units.”

© Copyright (c) The Vancouver Sun

Some asking prices are crazy, ?until it sells,? says one real estate agent

JOANNE LEE-YOUNG
The Vancouver Sun

A Shaughnessy home raised eyebrows when it sold last year for $8.01 million — or $2 million over the asking price. The four-bedroom home on a 16,400-square-foot lot — at 1383 West 32nd Ave. — was listed for $5.99 million in February of 2015 before fetching the inflated figure a few months later.

In mid-May it was put back on the market in pretty much the same condition. The asking price is $11.88 million, an amount that seems at least moderately audacious even in a market with high demand for a tight supply of such single-family homes in desirable areas.

And there are other properties with what is being cheekily referred to as “ego-pricing” — or whatever a seller wants to ask.

“People can ask for whatever they want. God bless them,” said RE/MAX’s Stuart Bonner of Vancouver Westside Real Estate.

The buyer’s agent in last year’s sale of that home on 32nd Avenue is now helping him or her to sell it. Ruby Chang of Sutton Group West Coast did not return calls to her cellphone on Thursday.

But to roughly compare, said Bonner, who sold the house on West 32nd last year, there is now another house across the street — at 1437 W 32nd, on a 17,000-squarefoot lot — that went under contract in June to be sold for just over $8 million. Bonner was thrilled to report back this latest sale to his client. The lot that just sold is only five per cent larger in size, he said.

The other property that has tongues wagging is also a $10-million-plus, single-family home. But this one is not a regular big house on a sprawling Shaughnessy or Belmont Avenue lot.

It’s on a 25-foot front lot, and the front door is not even a stone’s throw to the sidewalk, at 1081 West 7th Ave. It’s nestled in a mix of condos and townhouses in Fairview Slopes, two blocks down from West Broadway near Oak Street. The asking price is $13.8 million.

“A big part was finding land with 180-degree views, that is minutes from downtown, and maintaining the environment and fitting into the neighbourhood,” said Shaireen Lalani, a Yaletown dentist who owns the property. She bought the land more than a decade ago and said building the home has been a 10-year project.

Indeed, it’s an almost 5,000-square-foot, super-modern five-level home that cascades from 7th Avenue onto the lane behind. It has a private elevator, and is made of steel and concrete. The listing describes it as being “designed by one of Canada’s most noted architectural firms, Battersby Howat, whose design hallmarks are the interplay between natural materials, light and view.”

Listing agent Ken Leong lists the property’s many attributes. Of the asking price, he said: “This is luxury real estate. It used to be that these were unheard of prices in Vancouver. The city has changed. Look at prices in Marpole. It used to be that in Marpole, for the west side, it was one of the worst areas, but now Marpole is selling for $1,100 a square foot. It’s crazy.”

“It’s not just that it’s luxury,” said Lalani, noting how it would be difficult to find this land and build using concrete and steel, which has gone up in price. “We are five minutes from anything, but we have privacy and views. We are in our 40s, so we are still feeling young at heart and didn’t want a typical house with a yard. It’s also having the vision we had, and that’s not dime a dozen.”

The house was initially marketed on its own website at $16 million, but was then adjusted recently to $13.8 million. “Because of the lack of market comparables, it was hard to set,” said Lalani, adding they relied on her realtor’s advice.

But is there a comp of any kind? A few doors down, at 1033 West 7th, there is another home. It’s smaller at about 3,300 square feet, with one less bedroom and one less bathroom, and just three storeys terracing down to the back lane. It’s an older wood house, but was recently renovated. It similarly has sweeping views of the city in the back and abuts almost right against the city sidewalk in the narrow 25-foot-wide front. It sold in March for $2.744 million.

Sue Johnson, one of the listing agents who handled that sale, described the area as being “very cool, urban living at its best.” She added that it’s a single-family home in an area with a lot of multi-family density: apartments, city homes and condos. “It’s very unique.” She declined to comment on the $13.8million asking price of the home that’s currently for sale.

Both properties are zoned FM1 or multi-family and are freehold non-strata. Their assessed land values are both $1.469 million.

A realtor who was happy to offer his thoughts, but not his name for publication, said in an email that, in general, sometimes asking prices are crazy “until it sells.”

© 2016 Postmedia Network Inc.

Loss of grants sharpens tax sting

Kelly Sinoski
The Vancouver Sun

Local councils and the provincial government note their focus is instead on trying to provide more affordable homes across the region.

“The bad news is they have a tax bill, but the good news is they have a home in this market, which a lot of people never will,” Vancouver Coun. Geoff Meggs said. “We can’t change their assessment. As long as the market is allowed to run off like this, there will be this impact. There’s no doubt about it. They’re chasing the ball downhill right now because the market is so hot.”

The B.C. government, meanwhile, maintains homeowners have the option to defer all or part of their taxes if they can’t afford to pay them right away. For the fiscal year ending in March, nearly 40,000 people in B.C. opted not to pay their taxes, with 1,500 of those being families with children living at home. That is an increase of about 5,000 households since 2013. The average deferral is about $3,000 per year.

The province sells the scheme as a way to use the equity in a home to avoid paying taxes, for a “modest” increase in interest, while the taxes only have to be paid once a homeowner dies or the property is sold or inherited.

“It allows them to lean on the value of their property, which is rising,” said Jamie Edwardson, spokesman for the finance ministry. “I’m not sure the $570 grant is the tipping point for these people who live in $1.2-million houses.”

Adrian Mastracci, a financial adviser with KCM Wealth Management Inc., said he expects many homeowners aren’t aware of the tax-deferral program. The move is a good option for those who have restricted cash flow, he said, noting it is similar to getting a loan from the bank.

The interest rate for seniors (55 and older) and people with disabilities is 0.7 per cent, while the rate is 2.7 per cent for parents of children under the age of 18. Homeowners who don’t fit into those categories are not eligible to defer their property taxes.

“For some, (tax deferral) makes a lot of sense,” he said, but added: “If you’ve got the cash, just pay it because you’re going to have to pay the tax at some point. At least consider it and if it fits the bill, then do it.”

Tougas said he wasn’t aware of the tax deferral, but will look into it. “I’ll just have to see. Right now, I’m making do,” he said, but added he will seriously consider the move “if things get completely out of control and continue to be this way.”

He argues the provincial government should adjust the cap on the homeowner’s deduction to reflect the reality of Vancouver property values. “The idea when the homeowner’s grant was put in was that 95 per cent of homes in B.C. would receive it as a way of identifying ordinary people versus the wealthy establishment,” he said. “Somebody in Prince George is still well under the cap, but in Vancouver, it’s not being adjusted in any way. It’s a huge tax grab.”

NDP MLA David Eby, opposition housing critic, said he doubts the province will do anything to adjust the threshold for grants, noting their disappearance for many homeowners is a “windfall” for provincial coffers. And while homeowners can defer their taxes, he said, they will eventually have to pay them back and could face further problems if their property values fall in the meantime.

As a result, he said, people have no choice but to tighten their belts and stay put. “People are house rich but have no intention of selling or moving,” Eby said. “A lot of families have mortgaged everything they had to get real estate. I have trouble seeing much of a solution for these folks.”

© 2016 Postmedia Network Inc.

SUSAN LAZARUK
The Province

The house at 6712 Adera St. near 49th Avenue and Granville Street first sold in March 2014 for $3.2 million, and last sold in May for $7.6 million, said Steve Saretsky on his blog headlined: Vancouver Real Estate Speculation Runs Rampant.

He said the house’s final sale was among 179 west-side house sales in that month.

Of those, 28 houses — or almost one a day — had been sold at least once in the previous 12 months, said Saretsky, who went through the tax histories of each of the sales to come up with the number. That works out to 16 per cent of all May sales, he said.

“It’s like a lot of speculation out there,” said Saretsky, who works for Sutton West Coast Broadway Realty. “It is happening. They (buyers) are hanging on to it like stock and then selling” it at a profit.

The Adera property sold in July 2015 for $6.4 million before being sold for $7.6 million 10 months later, a $1.2-million profit. The seller made a gross profit of $120,000 a month or $4,000 a day.

Saretsky acknowledged there is “nothing illegal at all” about homeowners selling properties held for a short period of time, and speculation is risky if the market crashes.

But “it’s adding to the problem” of unaffordable housing, he said.

Vancouver west-side detachedhome prices have risen 35 per cent over the past year, according to the Real Estate Board of Greater Vancouver.

He said he understands why governments housing fund aimed at investors and speculators. The concept calls for property owners with limited residential or economic ties to B.C. to pay a 1.5-per-cent surcharge on residential real estate.

They said it would identify offshore property owners who pay little or no income taxes in Canada and who keep properties vacant as investment vehicles. The academics say the fund would make B.C. less attractive for investors looking to park their cash in housing. are reluctant to intervene in the free market, but said something needs to be done to limit speculation.

A group of B.C. academics earlier this year proposed a tax-based housing fund aimed at investors and speculators. The concept calls for property owners with limited residential or economic ties to B.C. to pay a 1.5-per-cent surcharge on residential real estate. The money would then be distributed as lump-sum payments to all Canadian tax-filers in the collecting region. 

They said it would identify offshore property owners who pay little or no income taxes in Canada and who keep properties vacant as investment vehicles. The academics say the fund would make B.C. less attractive for investors looking to park their cash in housing.

© Copyright (c) The Province

Sam Cooper
The Province

Metro Vancouver realtors will likely fall in line with major data sharing changes that have been forced on Toronto realtors in a competition ruling, Greater Vancouver Real Estate Board President Dan Morrison said Thursday.

Weeks ago, the federal Competition Tribunal ordered the Toronto Real Estate Board to release proprietary Multiple Listing Service sales data to consumers online.

Homebuyers in Toronto will now be able to access historical sales data that was tightly guarded by realtors in ways that stifled competition, according to a ruling. The new information should give consumers a better idea of the long-term value of properties compared to current asking prices, experts say, and help them avoid bidding wars that are encouraged under the current system.

Some analysts say consumer-friendly changes in Ontario could mark a long-predicted moment of disruption for Canada’s real estate industry, and Vancouver’s red-hot market. The most aggressive predictions envision consumers eventually using technology to directly buy and sell homes through an open MLS system.

Toronto realtors have fought to protect their MLS sales data for years, and say they will appeal the ruling.

Morrison said that if the competition order is upheld in Toronto, Vancouver realtors would also release MLS data, but he could not give a timeline for changes.

“I can’t imagine we wouldn’t support a major change like this,” he said. “But I’m not sure I agree that this (ruling) is the thin edge of the wedge in terms of going to a fully open MLS system.”

Surrey realtor Mayur Arora believes the Ontario ruling means B.C. consumers will be paying lower commissions for transactions, and general secrecy around many deals that critics say fuels market-inflating bidding wars could be reduced.

In one example, Arora says he is aware of realtors who tell prospective buyers that many offers have been made on a home, encouraging higher offers. In some cases, Arora says, multiple offers are “greatly exaggerated” or may not even exist. Also, some consumers and realtors say there are cases where properties don’t make it to the open market and the highest bid may not win, for reasons only known by realtors.

In the future, Arora said he can envision all listings being publicly marketed on the MLS system, and disclosure rules that would make all offers officially recorded. Ultimately, Arora believes fewer realtors will be working in B.C. due to technology and increased powers for consumers.

“I think we are on the cusp of a huge shakeup in the industry, and this ruling is the catalyst,” Arora said. “If you remember in the 1990s there were travel agents on every street corner — where did they go?”

Arora’s prediction won’t be popular with many realtors, but he is already a controversial figure. He says he faced a death-threat from an anonymous caller claiming to be a Surrey realtor in 2010, when Arora introduced a comparatively low, flat-fee commission plan for MLS system sales.

There will be continued resistance to greater MLS data sharing and lower realtor fees, Arora says, but the forces of change in B.C. have never been greater, since consumers are already angered by reports of shady dealings in Metro Vancouver’s skyrocketing markets. B.C.’s Superintendent of Real Estate Carolyn Rogers has acknowledged consumers have reason to

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REW

Concord Pacific opens its doors to preview Concord Brentwood

? JODIE WARREN
The Province

This weekend, potential buyers will be getting a first glimpse of Concord Pacific Developments Inc.’s new master-planned community in the heart of Burnaby’s Brentwood area.

Plans for Concord Brentwood call for 26 acres in the neighbourhood to be transformed into a beautiful, diverse mixed-use park-side community. Located south of Lougheed Highway between Beta and Delta Avenue and extending south past Dawson Street, Concord Brentwood will complete the exciting revitalization of the Brentwood Town Centre neighbourhood.

The developer is perhaps best known for its majestic Concord Pacific Place community on the shores of False Creek in Yaletown, which saw 200 acres of former Expo land transformed into a vibrant community, one quarter of which is park space.

Designed by award-winning architect James K.M. Cheng (also of Concord Pacific Place renown), Concord Brentwood will consist of 10 towers, most between 40 and 45 storeys tall, with Tower 1 of Phase 1 consisting of 426 units in 45 storeys.

Grant Murray, senior vice-president, sales, says there is a lot of buzz and excitement around this latest Concord development, which he attributes to a couple of factors. “The first is that this represents a great opportunity for people to get into a neighbourhood like Yaletown from the ground up,” he says. “Concord Brentwood will have better pricing than what you’re seeing in downtown Vancouver, and yet you are still only 12 minutes away from the city, and a five-minute walk to the SkyTrain.

“You’re getting nearly twice the space for the same price, which is something that is very attractive to families.”

Murray also points to the uniqueness of Concord Brentwood in terms of park space. “Much of this area, particularly around the SkyTrain, has quite an urban feel to it,” he says. “At Concord Brentwood, half of the project will be new park space. We are basically providing breathing space, not only for residents but for the community as a whole.”

Would-be buyers will be able to get a first-hand look at the community with the help of Concord 360, a virtual reality experience that the developer will be launching at the preview weekend. “Essentially, you can put on some virtual reality goggles and then, with the guidance of our VR pros, take a walk through the neighbourhood,” explains Murray. “You’ll be able to see the park, all of the towers, and even go inside a suite, where you can look out at the views.” The technology will be utilized in future Concord project marketing efforts. “In the past, people have had to create a vision of our communities in their heads, whereas now they will truly see what the future of the development will look like,” says Murray. “It really helps to demystify the pre-purchase experience.” Physical model suites as well as an enhanced VR suite will also be available for visitors to both touch and experience.

In a region where the issue of housing affordability is dominating the headlines on an almost daily basis, developers such as Concord are becoming increasingly sensitive to the challenges that first-time buyers have in purchasing a home. As a result, the company is offering innovative purchase options for some local first-timers to help make their dream of owning a home in the Lower Mainland an affordable reality.

“Being a Vancouver-based Canadian company, the local community very important to us,” says Murray. “We have always been a very community-minded company, and over the years, have put tens of millions back into the communities that we build, through programs, events and charities.”

Concord expects to break ground on the first tower in Concord Brentwood this summer. For more information on the preview weekend, visit: www.concordbrentwood.com, visit the presentation centre at 4750 Kingsway, Burnaby (Metropolis at Metrotown – next to Sears) or call: 604-435-1383.

This product was produced by Postmedia Works on behalf of Concord Pacific for commercial purposes. Postmedia’s editorial department had no involvement in the creation of this content.

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