Fraser Valley real estate transactions show less of an early-summer cool-off than those in Greater Vancouver, and home prices just keep on rising

Joannah Connolly
REW

June’s real estate sales in the Fraser Valley were the highest for any June on record, although they did not come close to the peak seen in March this year, the Fraser Valley Real Estate Board (FVREB) reported July 5.

The total of 2,864 sales on its Multiple Listing Service® (MLS®) – including residential, industrial and commercial – was an increase of 18.7 per cent compared with June 2015.

However, this was a slight fall of 1.5 per cent compared with May 2016, and did not threaten the record sales set in March 2016.

Broken out by residential transactions only, home sales were up nearly 21 per cent year over year and down only slightly compared with the previous month, showing less of an early-summer cool-off than the June transactions just posted by the board’s counterpart in Greater Vancouver.

The number of new homes listed for sale in the Fraser Valley increased year over year, but not enough to keep pace with real estate demand, with total listings at the end of June down by more than a third compared with the previous year.

The average price of a Fraser Valley property (all property types combined) in June was $711,874, a rise of 24.9 per cent compared with June last year.

Sales and Listings

There were 2,541 residential property sales in the Fraser Valley in June, up 20.8 per cent compared with June 2015 but down 1.4 per cent over the previous month’s figures.

Some 1,281 detached homes exchanged hands in June, which like in Greater Vancouver was both a year-over-year and a month-over-month decline, dropping two per cent since last June and nearly nine per cent compared with May. Across the region, the average number of days a detached home stood on the market in June 2016 was 17 days, compared with 35 days in June 2015.

Fraser Valley townhouse, duplex and row home transactions rose by nearly 36 per cent year over year to 656 sales, reflecting the increase in supply of this housing type as well as the rising demand for these homes. This figure was also a rise of 6.7 per cent compared with May’s 615 attached home sales.

As has been the trend in recent months, the steepest growth in the June market was seen in condo-apartment sales, which leaped 93 per cent year over year to 604 sales, a month-over-month rise of 8.4 per cent.

New home listings in the Fraser Valley were up 12.7 per cent compared with one year previously, totalling 3,111 in June. This was a decline of just 0.1 per cent, or two units, compared with the previous month.

However, at the end of June there were just 3,699 active home listings on the MLS ®, a decline of 34.5 per cent compared with the 5,650 active listings in June 2015, and a three per cent month-over-month drop, as buyers rushed to snap up the new and previously available listings.

Charles Wiebe, president of the board, said, ““Demand for Fraser Valley homes grips the market, tightly. Still, we are seeing a slight levelling-off that, while not drastic, is giving both buyers and sellers a bit more room to maneuver.”

Benchmark Prices

The price of a typical detached house in the Fraser Valley in June was $861,800, a jump of 41.3 per cent over June 2015’s $609,900, and a rise of 3.3 per cent – or $27,400 – since May.

The benchmark price of a townhome or other attached home in the region was up nearly 30 per cent year over year in June, to a still-reasonable $387,100. However, these prices may not stay affordable for long, as this was a rise of more than six per cent – $22,100 – in just one month.

No longer lagging in terms of price growth, the cost of a typical condo-apartment unit in the Valley increased nearly 21 per cent year over year to $231,900. This was up three per cent over the previous month.

Prices in the Fraser Valley differ by city and neighbourhood. To see home prices, sales and listings broken down by community, see the FVREB June 2016 statistics package.

© 2016 Real Estate Weekly

June’s transactions up only slightly over last year ? but still the most June sales on record, as prices continued to soar, reports board

Joannah Connolly
REW

The pace of growth in Greater Vancouver resale activity slowed considerably in June, with home sales up only 0.6 per cent compared with the same month last year, and down 7.7 compared with the previous month, the Real Estate Board of Greater Vancouver (REBGV) reported July 5.

Despite the deceleration, June’s 4,400 sales were still 28.1 per cent above the 10-year sales average for the month and were enough to make last month the highest selling June on record – by just 25 homes.

The benchmark price of a home (composite property types) across the region raised the bar again, at $917,800 – a 31 per cent rise over June 2015. However, this overall number obscures enormous differences in typical prices between municipalities and neighbourhoods.

New home listings on the Greater Vancouver MLS ® increased year over year in June, but declined compared with the previous month, as fewer sellers listed their homes after the hot spring market. Total active listings are still more than one third lower than this time last year.

“While we’re starting to see more properties coming onto the market in recent months, the imbalance between supply and demand continues to influence market conditions,” said Dan Morrison, REBGV president.

Sales and Listings

Residential property sales in the region totalled 4,400 in June 2016, an increase of 0.6 per cent from the 4,375 sales recorded in June 2015 and a decrease of 7.7 per cent compared to May 2016 when 4,769 homes sold.

So far this year, the market peaked in March, when an all-time high of 5,173 homes were sold in Greater Vancouver.

Breaking June’s figures down reveals huge differences between the directions of different property types.

There were 1,562 single-family home sales in June, which is a significant decrease of 18.6 per cent from the 1,920 sales recorded in June 2015, and a 16.2 per cent drop compared with May’s 1,865 detached house sales.

Townhouse and other attached home transactions told a different story. The total of 730 sales was an increase of 7.2 per cent over the 681 units in June 2015, but a fall of 3.2 per cent compared with May’s 754 townhome sales.

Sales of condo-apartment unit continued to outstrip other property types in Metro Vancouver, with 2,108 units changing hands in June 2016, a leap of 18.8 per cent compared with the 1,774 sales in June 2015, albeit a 1.9 per cent drop from May 2016’s figure of 2,150 sales.

New home listings on the Greater Vancouver MLS ® increased by 1.2 per cent year over year to 5,875 homes. However, this was 6.6 per cent lower than May 2016, with fewer sellers listing their homes as the summer months began.

This meant that total active listings at the end of June stood at 7,812, 35.9 per cent down year over year. Interestingly, this is a slight rise of 1.1 per cent over the active listings at the end of the month, reflecting the slowing of sales between May and June.

The sales-to-active listings ratio for June 2016 stood at 56.3 per cent. Although this strongly indicates the current seller’s market, this is the lowest ratio since February of this year.

Benchmark Prices

The combined residential property type benchmark price in Metro Vancouver set another new record in June, at $917,800 – a 31 per cent year-over-year rise.

The region’s typical single-family home is now priced at $1,561,500, a hike of 38.7 per cent compared with the same month last year, and once more the steepest price rise of all property types. This was a rise of nearly 3.2 per cent since just the previous month. As usual, this overall figure obscures the vast range of detached home prices between different areas. The most expensive region of Vancouver West (including the West Side and downtown) saw detached homes selling for a typical $3.5 million, whereas typical detached home prices on the Sunshine Coast were just $462,600 – and everything in between.

June’s benchmark price of a townhome or other attached unit in Greater Vancouver increased 28.1 per cent over June 2015 to $656,900, up 3.9 per cent compared with May. This ranges from just under $1.1 million in Vancouver West to $373,500 for a typical townhome in Maple Ridge.

Condo-apartment benchmark prices in June rose 25.3 per cent compared with June 2015 to $501,100, a rise of 3.3 per cent compared with May. West Vancouver again posted the highest condo prices in June at $846,300, with typical Maple Ridge condos selling for $190,000.

Home prices vary widely throughout the REBGV region. To get a good idea of home prices in a specific location, check the detailed MLS® Home Price Index in the REBGV full statistics package.

© 2016 Real Estate Weekly

NICK EAGLAND
The Province

The City of Vancouver is investigating the operation of 17 short-term rental units in a Kitsilano apartment block.

There are 17 Airbnb listings in the New York Apartments at 2341 York Ave. near Kitsilano Beach. The two-storey building has 29 units, according to its owner, and is zoned as a medium-density residential development.

In Vancouver, all rental tenancies must be at least 30 days except in hotels and licensed bed and breakfasts, but the vast majority of Airbnb hosts violate this regulation. In online reviews, many users say they stayed at the New York for just a few days.

The building was sold last July for $3.8 million to Nevin Sangha of Carrera Management Corp. Sangha said his firm manages around 300 conventional rental units in the Lower Mainland, and stressed that the New York is the firm’s only building using Airbnb.

The reason for the Airbnb units, he said, is because his staff has struggled to rent out the New York’s SRO units using traditional methods such as Craigslist.

“They’re SROs so they’re pretty hard to rent out the way they are,” said Sangha, adding, they’re “not what the market’s looking for so the Airbnb seems to make more sense for them.”

Tenants of the New York’s sleeping rooms — SROs averaging 110 square feet — share four parking stalls and common washrooms, showers and baths. The building also has a penthouse and several one- and two-bedroom units. Units are listed at between $60 and $169 per night.

Sangha said the firm spent close to $1 million restoring the New York after “much-deferred maintenance” left some units uninhabitable.

He’s working with an architect to prepare an application to convert some of the SROs into conventional rental units to attract potential long-term tenants.

Sangha said he understands there are critics of Airbnb but said many of the units get 30-days stays. He said city staff visited the building three times and took no issue with the short-term rentals.

“It’s a lot of work, and it’s in our best interest to go with the longer-term tenants,” he said. “We don’t make any real returns on the short-term tenants because there’s a lot of labour.”

In an emailed reply to questions, the city said it received a complaint through its 3-1-1 phone line about alleged multiple short-term rental units at the New York. It is investigating the rental use.

“There is a valid residential rental business licence for a rooming house with up to 24 sleeping units,” the city said. “However, in Vancouver, all rental tenancies must be at least 30 days except in licensed bed and breakfasts.” The New York’s Airbnb use isn’t unique. Iain Marjoribanks, a student with the University of B.C.’s school of community and regional planning, tallied more than 3,400 active Airbnb listings in Vancouver last December. His research found that 99.3 per cent of Airbnb stays in Vancouver are shorter than 30 days.

“The majority of Airbnb’s listings, bookings, and revenue appears to come from a minority of ‘commercial’ hosts: property managers who list one or several full houses, apartments, and rooms on a long-term commercial basis,” he said in his report.

The city is working to address concerns about the impact of short-term rentals on the rental market. Last year, Vancouver had the lowest vacancy rate in Canada at 0.6 per cent, according to a staff report.

In an email, the city said: “Council has directed staff to review the City’s current regulations and enforcement practices for short-term visitor rentals, and propose changes to prevent negative impacts on the supply and affordability of rental housing for Vancouver residents. Work is underway and council will consider options in the fall.”

In a motion filed in April, Councillor Geoff Meggs said: “It is probable that many of these units are being offered in violation of the zoning and development bylaw with a negative impact on vacancy rates, building security and public safety considerations.”

© Copyright (c) The Province

How Vancouver became a speculators’ playground

Daphne Bramham
The Vancouver Sun

There’s something almost pathetically naive about the City of Vancouver’s plan to tax owners of vacant homes.

Forget its most obvious flaws. It would be hideously expensive to administer and police. It would be largely dependent on self-reporting, and despite Canadians’ Dudley Do-Right reputation, I expect few are all that willing to out themselves as empty home owners (and, if not self-reporting, the city hopes neighbours will snitch on neighbours — something normally relied on by only the most oppressive regimes).

The crucial problem? It won’t end speculation, which is something that municipalities along with the development industry and the provincial government were complicit in helping to create.

Less than a decade ago, municipalities lobbied hard to get the B.C. government to change the Strata Property Act so that all newly constructed strata-titled homes would be available for rentals. The 2010 amendment prevented newly formed strata corporations from passing bylaws that would either restrict the number of rental units or ban them entirely.

Rental restrictions and bans were popular among owners who live in their condos. Most viewed the restrictions as enhancing their property’s value and their quality of life because they promoted a more stable, shared community.

To be fair, exempting new condos from rental restrictions was likely done with the best of intentions, as a means of increasing the rental stock. But it backfired.

“It became an open playground for speculators,” says Tony Gioventu of the Condominium Home Owners’ Association.

By 2010, the population was growing and, increasingly, those with means began to regard Vancouver as a nice, safe place to have a condo as a second home or vacation property. Overseas “pre-sales” of condos had long been normalized. Interest and bond rates were at historic lows and have remained there. Stocks were only starting the long, slow (and ongoing) struggle to regain the values lost in the 2008 crash.

While condo prices haven’t risen at the pace of single-family houses, last year alone the average assessed value of a Coal Harbour condo increased 12 per cent. In West Vancouver, Delta and Coquitlam, average assessments went up between eight and 10 per cent.

For investors, the choice of where to plant money is simple. Condos provide a carefree investment, especially if you don’t need the bother of renters.

In a recent survey, CHOA found that in condos built since 2010 in high-end neighbourhoods like False Creek and Coal Harbour, anywhere from 17 to 34 per cent of the units are occupied for less than one month a year.

Because of the purchase cost, he says, investors would have to set rents somewhere in the range of $3,000 to $6,000 a month for the units to earn income. But with mortgage rates so low, who’s going to pay that kind of rent? Nobody, says Gioventu. So the buyers are mainly people able to carry the cost, holding onto the condo just as they would a speculative stock, until the price gets high enough that they decide to take their profits and run.

Close to 95 per cent of all new housing construction in Metro Vancouver is now strata-titled condos and townhouses. But demand is strong from local people cashing out of single-family homes, locals who can’t afford single-family homes, from non-residents, and, more recently, from Airbnb entrepreneurs with multiple units posted on the sharing economy website for daily and weekly rentals.

And while some strata corporations have managed to pass bylaws banning Airbnb rentals, Gioventu says he is aware of long-term renters being evicted from strata buildings to make way for more lucrative short-term stays.

So what’s the solution? Not the “vacancy tax” that the city is proposing.

Aside from the obvious problems cited above, there would still be the problem of older strata-titled units governed by bylaws that forbid rentals. Owners could end up facing the choice: Rent and pay a fine of up to $500 to the strata corporation, or declare their vacant home to the city and pay the tax.

Gioventu says an easier way would be for the provincial government to use homeowners’ grants as a means for municipalities to retain property taxes by creating two additional categories: one for homes that are always empty, and one for those used as vacation properties or seasonal rentals.

The conundrum of near-zero vacancy rates and a growing number of empty homes has frustrated citizens. It’s also got politicians itching to “solve” the housing affordability problem before the next election cycle.

Plenty of solutions are being booted about, from the city’s plan to others that include banning property ownership by foreigners, cracking down on money laundering, and quickly and dramatically increasing supply to force prices down.

But before politicians leap to any quick fixes, they should think about the 2010 Strata Property Act amendment as a cautionary tale of unintended consequences.

© 2016 Postmedia Network Inc.

?Powerful? revitalization deals might slow pace of demolition

? KIM PEMBERTON
The Vancouver Sun

Michael Bruce used to build new homes on the west side as a way to keep busy after retiring.

But these days, the Point Grey resident has gone in a completely different direction — to the east side of Vancouver, renovating heritage homes.

“I used to build craftsman-style houses that were copies based on these houses. But over time, I found it to be more profitable and more interesting to me not to be building from scratch,” he said. “There’s such a lot of history in (heritage houses). It’s a shame to lose them.”

His current project, at 458 East 10th Ave., is converting a heritagedesignated house built in 1904 into two separate strata-title homes within its walls. He’s also building a new heritage-style coach house at the rear of the property. But unlike a laneway house, which can only be rented, a coach house can be sold.

When Bruce’s project is finished, instead of one owner, there will be three living on a standard city lot, 10 metres by 37 metres.

To build the infill house, Bruce applied for and was granted a density bonus under the city’s Heritage Action Plan, a program designed to deter owners from demolishing heritage homes.

But Bruce believes he might be one of the last applicants in Vancouver to receive permission to build a coach house on a small city lot, saying it appears the city has stopped granting the necessary exemptions for similar projects.

Under the current zoning bylaws, side yards must have a five-metre setback from the adjacent property. But this is impossible on a 10-by-37 lot, which typically has a setback under two metres. So these types of developments are only possible if the city agrees to make an exception. Don Luxton, the city’s heritage consultant, said those types of revitalization agreements were restricted after a bulletin April 1 from the planning department specifying the rules involving smaller lots.

“We have a number of houses (in the application process) caught up in that policy shift. We’re not talking about thousands of projects. It’s a couple of dozens a year at most,” he said.

“It’s important to understand (a heritage revitalization agreement) is one of the most powerful tools we have to conserving heritage buildings. Any policy that restricts those negotiations presents a challenge for preservation.”

Developer Joel Silverman recently finished a heritage triplex, converting a single home in Kitsilano into two units along with a coach house in the rear.

“The real successful projects are give and take. You get a bit more density for keeping the heritage. It’s a win-win,” he said.

“But if I was to apply for my permit today, it would be rejected out of hand. From what I understand, that permit avenue isn’t open anymore. What they’re doing flies in the face of all the lip service the city gives to anti-demolition and retaining heritage houses.”

Silverman said given the climate at city hall, he doesn’t plan to try to restore any more older homes and instead will look for other development projects either in Vancouver or Calgary, where his business has also been operating.

Despite complaints from applicants who say their projects have stalled in the planning stages, Vancouver senior planner Anita Molaro insists there have been no changes at city hall.

“We are still pursuing the retention of character houses as per our policies as well as the interim policies established under the Heritage Action Plan,” she said. “We haven’t changed the rules since 1998. People have misinterpreted what they could do.”

Molaro said the city continues to consider a variation to protect heritage houses. She said owners could be granted density bonuses to either build an addition to existing heritage houses on small lots and an infill house at the rear of a heritage home on a larger lot.

The city was not able to give the exact number of coach houses already built in the city, and of these, how many were on smaller lots.

In 2015, there were 212 permits issued in single-family residential zones that retained a pre-1940 house. And of these, 67 per cent allowed additions and alterations to the original house. Ten per cent of the projects also included a heritage revitalization deal.

Between 2011 and 2015, 29 heritage designations and 45 heritage revitalization agreements were approved. Despite conserving some homes under the current rules, hundreds of heritage homes are torn down each year in Vancouver.

Last year, of the 951 demolition permits issued in Vancouver, 368 were for houses that predated 1940. So far this year, 157 character homes have been demolished.

Architect Michael Geller said more character homes could be saved from demolition if the city takes a broader approach by allowing a second house to be built and sold at the rear of the smaller lots. He said this also provides an affordable housing option for potential buyers.

“There’s a lot of builders who would be interested in this, provided they could sell the infill house,” Geller said. “It would do two things: help conserve a lot of lovely older character houses and result in smaller single-family houses in established neighbourhoods.”

Molaro said the city is now studying suggestions from a recent stakeholders meeting and will consult with the public come fall before bringing recommendations to council by early 2017. The city is specifically looking at areas of concentration in the city of pre-1940 homes in single residential zones and reviewing zoning schedules.

“We are continuing to process permits and support heritage retention,” she said.

Elizabeth Murphy, a former property development officer with the City of Vancouver, said the city also needs to undo damage it did in 2009 when it brought in laneway houses. (Since 2009 there have been 2,297 permits for laneway houses issued in Vancouver.)

At the time, she said, the Vancouver Heritage Commission recommended laneway houses be an incentive offered only to owners of character homes, but the city ignored that request and made that option widely available.

“You could build huge maxed-out boxes without consideration to the streetscape, so you would have a monster house out front and a mini monster house at the rear. It just further exacerbated demolition of character homes,” Murphy said. “The city needs to reverse some of the things they botched.”

Murphy said while the city decides on its next steps, interim measures are desperately needed to stop the demolition of character homes.

“Otherwise,” she said, “there will be nothing left to save if the current pace (of demolitions) continues.”

© 2016 Postmedia Network Inc.

PROCEEDS OF CRIME: Surrey home is the subject of a provincial government civil forfeiture case

KIM BOLAN
The Province

A convicted trafficker facing new drug and firearms charges laundered his illicit profits through the purchase of a Surrey house, the B.C. government alleges in a civil suit.

B.C.’s director of civil forfeiture says career criminal Frederic Wilson is the actual owner of the house at 5846 134A Street, even though it’s registered in the name of his brother-in-law, Phoukhong Phommaviset. 

“Phoukhong Phommaviset is a nominee and is holding the title to the property for the true beneficial owner, Frederic Wilson,” says the statement of claim filed in B.C. Supreme Court.

Phommaviset has filed a response to the lawsuit, stating “the property was acquired with lawful proceeds, including, but not limited to employment income, rental income, capital gains, borrowings and/or savings.”

The documents say Wilson and his wife, Latsaphone Koonpackdee, are only tenants in the house.

Phommaviset “denies any involvement in criminal activity or receiving any proceeds directly or indirectly, that, to his knowledge, were proceeds of unlawful activity.”

Wilson’s drug trafficking convictions date back to 1995.

His most recent came in April when a Vancouver judge found him guilty of possession of cocaine, methamphetamine and MDMA for the purpose of trafficking, as well as two precursor chemicals used to make meth. He was sentenced to seven years in jail on June 30.

And he is still facing a series of new counts stemming from his arrest in May at a White Rock drug lab.

Wilson’s house was purchased in December 2011 for $768,000. It’s now valued at $852,000.

The government suit lays out a convoluted series of transactions in the fall of 2011 that it says prove Wilson and Koonpackdee are the real owners. It is seeking forfeiture of all or part of the value of the house.

Large amounts of money used for the deposit and later the down payment were provided by Wilson and Koonpackdee “in an effort to launder the proceeds of unlawful activity,” the civil forfeiture suit alleges.

Some of the money used for the down payment came from an account belonging to the mortgage broker’s brother and sister-in-law, the court documents said.

The mortgage broker himself — Bhupinder Dhaliwal — also kicked in almost $80,000 for the down payment, police determined.

Dhaliwal told The Sun he had no idea Wilson was a convicted drug trafficker until the RCMP visited him several months ago.

“The policeman told me and I was surprised. I was extremely surprised. I could not believe it,” he said. “He was very sweet to talk to and easily I could trust him.”

Dhaliwal said that before the 2011 house deal, he met Wilson and his wife, who he called Lani, once or twice through a mutual friend.

He said Wilson claimed to work in “securities” and to deal only in cash to avoid having to pay his ex-wife more money.

“That was the story they were giving,” he said. “He said he works with … cash so that his wife can’t take any more money away because she has taken close to $500,000, he was saying. He said he still has lots of money.”

Dhaliwal claimed he was struggling with credit card debts of more than $70,000, so asked Wilson for a loan to pay them off. He said the loan transaction was completed before Wilson and Koonpackdee came to him about the mortgage.

“They were saying they were the silent partners in this house, half and half, I think.”

But Wilson and Koonpackdee didn’t want their names on the house because of Wilson’s “rough divorce,” Dhaliwal said.

Dhaliwal said he agreed to broker a mortgage for Phommaviset, as long as he qualified on his own. 

“Just a few days before the closing, (Wilson and Koonpackdee) demanded the money back. And I said, ‘I don’t have it because you didn’t say you need the money this quick,’” Dhaliwal said.

He said Wilson told him Phommaviset had an emergency and “they had to close the deal.”

“Then he made me feel so guilty, saying … they are going to lose the house,” Dhaliwal said. “I had to take the money from all of my credit cards to the maximum limit.”

He said he also borrowed money from his brother and paid all of it into Phommaviset’s accounts at Wilson’s request.

Dhaliwal claimed he paid well beyond what he owed in order to help Wilson out because “all of their dreams were in this house.”

Wilson later came to him and repaid about $20,000 to Dhaliwal, all in cash, he said.

Asked if the transactions were appropriate business practice for a mortgage broker, Dhaliwal said, “No, it is not.”

“I am still shocked and ashamed and embarrassed. Now I see, it really bothers me. It’s not that he made a fool out of me. I was stupid enough to be made a fool of by a criminal.”

© 2016 Postmedia Network Inc

Royal Bay in Colwood will offer 2,300 homes in beautiful setting

? CLAUDIA KWAN
The Vancouver Sun

Royal Bay

Project location: Colwood

Project size: 2,300 homes

Site developer: Royal Bay Community Limited Partnership 

Phase I: GableCraft Homes

Project size: 28 homes 

Residence size: 3- and 4-bed single-family homes, 1,467 – 1,928 sq ft

Prices: from $519,900

Developer: GableCraft Homes

Architect: Phase One Design

Interior design: Navo Design

Sales centre: 3549 Ryder Hesjedal Way, Colwood

Hours: by appointment only

Telephone: 778-265-8350

Website: www.gablecrafthomes.ca/royalbay

Sales begin: July 2016

Occupancy: Summer 2016 Phase I

It seems like a lofty task — potentially even impossible — to have a master-planned community be all things to all people, but Greater Victoria’s Royal Bay could have that potential.

The sizable location of the Colwood community makes it a decidedly unique place, according to Russell Tibbles, president of site developer Royal Bay Community Limited Partnership.

“This is 400 acres of oceanfront property — it’s a once-in-a-generation opportunity,” he explains. “It’s going to be a complete, cohesive, and inclusive community with a mix of residential and office space, parks, schools and shops.”

For a century, the location functioned as a rock quarry, but even then, its natural beauty was evident. Tibbles says Emily Carr spent a summer painting in the region in the 1930s, remarking on it being “a place of high skies, blue and deep.”

As well as breathtaking expanses of ocean, people can take in rolling hillsides and green space galore.

During the planning process for Royal Bay, the team made it a mission to ensure there would be a park within a five-minute walk of every home. With an eventual 2,300 homes in total — ranging from single-family homes, townhomes and rental apartments and strata condominiums in low to mid-rise buildings — it was a challenge, but one that was a high priority.

In total, 100 acres – a quarter of the site – has been set aside as green space. They include parks with natural trails and high bluffs to urban-style playgrounds and an oceanfront park. The 1.3-kilometre long oceanfront stretch is completely publicly accessible, and residents may be able to look forward to kiteboarding and kayaking just steps away from their front doors.

Tibbles also says work is being done on creating a Garry Oak ecosystem, which is both region-specific and relatively rare. It includes mosses, grasses, rock outcroppings, and meadows, which will create habitat for native species.

With all that being said, Tibbles says the area has more to offer than just access to the great outdoors.

“The Westshore has really grown and come of age. It’s a dynamic area with beaches, restaurants, urban amenities, and offers an active lifestyle that’s very compelling to people. We took a look at the best practices and principles from areas around the world and have tried to apply them here to provide quality of life.”

Key to this was creating a real sense of community. From building so many different types of housing on the site, Tibbles says they expect to see every type of possible purchaser at every life stage, from first-time buyers to seniors. He believes they will come in a wide range of ages, with different budgets, and many different socioeconomic groups represented.

He believes they will become a tight-knit community over time because of the emphasis on pedestrian and cycling paths, as well as roadways, and gathering points like neighbourhood parks and coffee shops. Groundbreaking will take place in July for Royal Bay’s ‘neighbourhood house’, which will house a restaurant and café for the surrounding residential area, as well as community space. A new high school opened for the community in September 2015, with planning work continuing on a new elementary school. Royal Roads University isn’t particularly far away either. And for those who want to go into town, it’s an approximately 25 minute drive to downtown Victoria.

When it comes to the single-family homes being built in the first phase, GableCraft Homes president Alex Ferguson says they had young families in mind.

“The members of our design team are members of this demographic themselves. We spent a lot of time thinking through the finer points of say, where to put muddy boots and backpacks when coming into the home through the back entry, or where a powder room would make the most sense.”

They also thought through ‘zones’ in the homes, where as necessary, families could spend time together, or separate into children’s areas and private spaces for grown-ups. They went over laundry rooms and pantries with a fine-tooth comb, emphasizing functionality and storage capabilities.

Understanding that this type of homebuying process – where there are multiple options available for interiors and exteriors — can be complicated, they have set up the GableCraft Home Store to walk consumers through the myriad decisions involved. They can choose between different floor plans, colour schemes, finishes, and exterior elements. The homes include front porches and detached garages that open up to wide paved lanes in the back – perfect for a little street hockey or roller-skating.

“We don’t want people to feel pressured or rushed, so we’ve set up private viewings to let people get to know us and the product,” Ferguson explains. “This is about building relationships and controlling the rollout of homes, because there are lots more coming.”

Both Tibbles and Ferguson say most of the interest is coming from people who are already in the immediate community, in Greater Victoria, or in the Lower Mainland. They expect the vast majority of buyers to be end users.

They also agree the guiding principle is to get things right, rather than get everything built right away. The full build out process could take the next two decades to complete, which will allow them to be responsive to changing community needs, and allow Royal Bay to grow as a neighbourhood at its own natural pace.

© 2016 Postmedia Network Inc

Mosaic’s Guildhouse designed with first-time buyers in mind

SIMON BRIAULT
The Vancouver Sun

Guildhouse

Project location: 14975 101A Avenue, Surrey   

Project size: 221 apartments and townhomes of between 1 and 4 bedrooms

Residence size: 560 — 1,400 square feet

Price: from the low $200,000 range

Developer: Mosaic Avenue Developments Ltd.

Architect: Ramsay Worden

Interior designer: Insight Design Group

Sales centre: 14975 101A Ave.

Hours: noon — 6 p.m., daily

Telephone: 604-574-1143

Website: http://www.mosaichomes.com/guildhouse

Occupancy: Fall 2018

Geoff Duyker, senior vice-president of marketing at Mosaic Homes, believes the Guildford neighbourhood in Surrey is going to be the next big thing. That’s the first thing he brings up when describing the appeal of Mosaic’s 221-home Guildhouse development at 101A Avenue and 152^nd Street.

“We love Guildford and we think it’s one of those neighbourhoods that have yet to be fully realized,” Duyker said. “Details are still to be worked out, but we anticipate that there will be rapid transit running through the area in the near future. Guildford Town Centre Mall will be right across the street from Guildhouse and it has recently completed a $280-million renovation. It’s now a regional mall that draws people from all over and has some of the best shopping, dining and entertainment around.”

Among the 250 outlets at the mall are stores like Hudson’s Bay, Apple and Arizia, and restaurants that include Famoso Neapolitan Pizzeria, Chipotle and Milestones. Guildford Heights Park and Hjorth Road Park and outdoor pool are also within walking distance.

“There’s a big trend in locating new housing close to great malls and amenities, whether that’s Brentwood or Metrotown or Oakridge,” added Duyker. “This is a wonderful neighbourhood that’s only going to get better, but until now, there haven’t been many options for people to buy a new home.

The Guildhouse development offers mostly one- and two-bedroom apartments, but there are also plans for three- and four-bedroom townhomes to go on sale later in the summer.

The development will feature Mosaic’s signature Georgian-style architecture and will be constructed around a motor court or sweeping driveway that will define the entry to the property. There will also be a private amenity building, exclusive to residents, with a fitness area and a furnished meeting room.

“These homes have been designed to be incredibly livable, but at very attractive price points so that young, first-time buyers can get into the market, which is not an easy thing to do these days,” said Duyker. “We have homes starting from the low $200,000 range. All homes have 10-foot ceilings, which is really unusual for an apartment building. This means people get taller windows, more light and a bigger, airier feel to the home.”

Paulo Tampos, a first-time buyer who snapped up a plan with one bedroom and a den, was particularly impressed with the design of the homes at Guildhouse.

“When I went to the showroom I found the finishes and the way they set up the whole interior design to be really great,” he said. “The 10-foot ceilings add extra space to the pantry and the cabinets in the kitchen. It doesn’t feel as cramped as some apartments I’ve seen and the windows are nice and big, which I really like. One of my realtors recommended Guildhouse to me and said that Mosaic was one of his favourite developers. So we went there, took a look at the place and I was really impressed.”

The fixtures and finishes at Guildhouse are another of Duyker’s top selling points for the development. These include herringbone floors and matte black hardware and faucets in the kitchens, loop-pile carpeting in the bedrooms and recessed pot lights in select locations throughout the homes.

Many homes feature full-height pantries in the kitchens, which come with Kohler white cast iron single-bowl sinks and under-cabinet LED task lights. The Whirlpool appliance packages include 30-inch stainless steel, 19-cubic-feet refrigerators with bottom freezers (buyers also have the option of upgrading to a Fisher & Paykel, 30-inch stainless steel counter-depth refrigerator with bottom freezer). There are also 30-inch stainless steel electric slide-in ranges, fully integrated dishwashers with hidden controls, stainless steel microwave and hood fan combinations and front-loading washer and dryers.

Bathrooms feature matte grey and white shaker-style cabinetry (plan specific) with chrome pulls, over-sized porcelain tiles on floors and walls, soaker tubs and Acri-tec white, rectangular porcelain sinks. There are also Kohler single-lever faucets in polished chrome, integrated linear lighting above and below floating mirrors and high-efficiency dual-flush toilets.

For Paulo Tampos, who lives only five minutes away from the Guildhouse site and knows the area well, the interior features really sealed the deal when he walked into the showroom. But, as ever with first-time buyers, it’s the thought of having a place of his own that he’s most looking forward to.

“Being in my own space and actually owning a home is going to be a great feeling,” he said. “It’s a good location too, with the mall right there and one of the major bus loops in Guildford less than a 10-minute walk away. The area itself has great potential for development and growth. It’s a good spot.”

Sales for Guildhouse officially opened on June 25. Construction will begin in the fall and buyers are expected to be able to move in from the fall of 2018.

© 2016 Postmedia Network Inc.

Premier Christy Clark says a report shows that self-regulation of the industry must end because consumers are being put at risk

? JOANNE LEE-YOUNG
The Vancouver Sun

There wasn’t much of an official reaction from the Real Estate Council of B.C. to Premier Christy Clark’s announcement this week that it will no longer be allowed to regulate the conduct of realtors on its own.

But whistleblowers, who were among the first to bring the industry’s failings and unscrupulous activities to the media, leading to a damning report and the provincial government’s move to bring in widespread changes, said plenty.

“We had a chance to do better. The solutions were so easy,” said Re/Max agent Keith Roy. He served on the Real Estate Board of Greater Vancouver’s professional standards committee for two years before recently feeling blackballed by other members for openly airing his concerns.

“There is resignation and disappointment, but acceptance,” said Roy. “There will be a loss of selfregulation. It’ll be something that is thrown upon us.”

“My impression is that if had we ourselves enacted 80 per cent of (what the report this week recommends), we would have been left alone,” said Roy. “Now, we will have to meet 100 per cent of the (recommendations when they are implemented), but 20 per cent of them will be a bureaucratic nightmare with no impact on consumer protection.

“That part of it will be window dressing. Every time the government takes over, there is more paperwork. This is not something the government wanted to take over. They were very reluctant to do this.”

Roy said an opportunity was missed when stories about aggressive contract assigning and dubious conduct by the owner of New Coast Realty started to emerge. He said the council should have moved quickly to take away the company’s licence. Instead, it imposed a list of conditions under which it could continue operating.

Said Roy: “We could have done it before, but we were too busy selling houses.”

Morning Yu, who was one of the former New Coast agents who spoke to The Vancouver Sun in March about being owed hundreds of thousands of dollars in commission fees reacted to this week’s news: “It’s great. I hope that government can do more to monitor realty companies.”

Yu is still mostly concerned with being paid her outstanding commissions and said she intends to launch a suit against New Coast next week. “The council could not do anything to help me.”

She has engaged lawyer Wayne Ryan to handle her case. In part, he said, they waited for the release of the report because its details, and the reaction to it, “will assist in our notice of claim.”

Bill Messer is now retired, but in 2012 he acted as the managing broker for New Coast Realty when it was founded by businessman Ze Ye Wu. Wu was forced to step aside from his responsibilities after The Globe and Mail newspaper released an audio tape of him training his agents to pressure home sellers for fast sales at low prices so that colleagues could step in and flip the properties and make a maximum profit for the company.

Not too long into his position, Messer was concerned about the company. At the time, it was mostly about its “handling of rentals and using other realtors to sell properties and taking a fee for it,” recalled his spouse, Donna Messer.

Bill said he tried to go to the council, mainly “to protect ourselves as brokers. I wrote letters. A couple. I talked to them on the phone.”

In the end, the message they got from the council, said Donna, was that it was “probably a good idea for us to get out of the situation.”

They did and have moved on, but for those who are still in the thick of the real estate industry, “there are a lot of problems,” said Bill.

“Any changes will be good. Far too many people have it too easy. “

“As a start, if you increased the education barriers, it would shake out a lot of the players and selfregulation would start to happen on its own.”

In interviews with its lawyers and the company’s recently appointed chief compliance officer, New Coast has repeatedly denied allegations. A statement on its website says: “There were allegations of wrongdoing detailed in some media reports. New Coast Realty and its agents have denied the allegations. The company is co-operating with investigations by the Real Estate Council of British Columbia.”

Meanwhile, real estate boards — which exist to represent agents in different regions of the province — differed from each other in tone with their official reaction.

The Fraser Valley Real Estate Board said it “strongly supports moving forward with the recommendations brought forward” by the independent panel as well as Clark’s announcement to end selfregulation of the industry.

The Real Estate Board of Greater Vancouver said the government’s acceptance of the panel recommendations is a “positive development for the real estate profession. Many of the recommendations address issues that (we have) long advocated for, with the support of our members.”

However, said its president Dan Morrison in a statement: “We take offence to the distorted image presented of our membership this week.”

“The more than 12,800 (agents) in Greater Vancouver were unfairly tarred with a negative brush this week, because of the actions of a few who allegedly failed to act in the best interests of their clients.

“They don’t represent the profession as a whole.

“The vast majority of (agents) are hard-working, knowledgeable professionals who act with integrity.”

© 2016 Postmedia Network Inc.

Steve Randall
REP

Canada’s economy grew in April by 0.1 per cent following two months of decline and real estate was a key driver of growth.

Statistics Canada’s figures show that the real estate sector added $218.8 billion to GDP in the year to April, up from $211.6 billion in the previous 12 months.

The data shows that real estate was responsible for a third of the annual GDP growth year-over-year.
A separate report from the Conference Board of Canada highlighted improving economic conditions. Its leading indicator increased 2.6 points in April with 7 of the 9 components increasing.

Commercial and industrial building permits together with employment insurance claims were the components that were lower.

Copyright © 2016 Key Media Pty Ltd