Canadian Real Estate Wealth

The pace of housing starts in Canada slowed in September compared with August, but stayed over 200,000 for the fourth month in a row.

Canada Mortgage and Housing Corp. said Tuesday the seasonally adjusted annual rate of housing starts slipped to 217,118 units in September, down from 225,918 units in August.

The pace of multi-unit urban starts _ condos, apartment buildings and the like _ dropped 10.7 per cent to 131,388. That more than offset an increase in single-detached urban starts, which climbed 8.2 per cent, to 67,522. Overall annualized urban starts fell 5.1 per cent in September to 198,910.

Bank of Montreal senior economist Robert Kavcic said investment in residential construction seems grown again in the third quarter, after declining modestly in the second quarter.

“Canadian homebuilding activity remains robust, with the best population growth in 25 years proving fundamental support,” Kavcic wrote in a report.
CMHC’s trend measure, the six-month moving average of the overall monthly seasonally adjusted annual rates of housing starts, slipped to 214,821 in September compared with 220,573 in August.

In the Toronto region, CMHC said the pace of housing starts trended lower by seven per cent in September compared with August, led by a drop in apartment starts.

Meanwhile, Vancouver also trended lower as fewer multi-family home projects started work. CMHC said a record number of units under construction in the region have left little spare capacity to start additional projects.

The annual pace of rural starts were estimated at a seasonally adjusted annual rate of 18,208.

Statistics Canada also reported Tuesday that Canadian municipalities issued $7.5 billion worth of building permits in August, down 5.5 per cent from July.

Residential permits slipped 2.8 per cent to nearly $4.9 billion, while non-residential permits fell 10 per cent to roughly $2.7 billion.

Copyright © 2017 Key Media Pty Ltd

BCREA

Canadian housing starts decreased by 4 per cent in September to 217,118 units at a seasonally adjusted annual rate (SAAR).  The six-month trend in Canadian housing starts also declined to 214,821 units SAAR.

New home construction in BC rose 6 per cent on a monthly basis to 37,470 units SAAR but was down 18 per cent on a year-over-year basis.  Single detached starts were flat compared to one year ago while multiple unit starts declined 24 per cent year-over-year.

Looking at census metropolitan areas (CMA) in BC: 

• Total starts in the Vancouver CMA fell 13 per cent from August and were down about half compared to September 2016. Multiple unit starts were down 58 per cent from one year ago as record levels of units under construction weigh on new projects.
• In the Victoria CMA market, housing starts continue to surge, rising 127 per cent year-over-year. Multiple unit starts continue to drive new home construction, with starts more than triple levels seen last September.
• New home construction in the Kelowna CMA jumped more than 200 per cent year-over-year as close to 350 new multiple unit starts were recorded.
• Housing starts in the Abbotsford-Mission CMA also more than doubled year-over-year due to strong growth in both single and multiple starts.

Copyright ©2017 BCREA

Steve Randall
Canadian Real Estate Wealth

Home affordability for first-time buyers is set to take another hit in the coming months as rising prices are exacerbated by rising mortgage costs.

In its latest economic forecast, Scotiabank calls for an 8% rise in mortgage carrying costs for new buyers in 2018 with an additional 4% rise in 2019.

The lender says existing borrowers should be largely insulated from the increases as their fixed-term loans are rolled over at rates comparable to or lower than those secured at origination.

Scotiabank believes that Canada’s housing cycle has likely peaked with policy changes, affordability issues and higher borrowing costs all playing a part.

While the bank expects low unemployment and foreign capital inflow to continue to support the market along with increased household formation, its report states “we anticipate some moderation in home sales over the forecast horizon, as rising borrowing costs and tougher mortgage-qualification criteria lead to some further erosion in affordability, especially for first-time buyers in major urban markets.”

New home construction will likely ease due to a moderated resale market but supply is still expected to remain elevated.

Copyright © 2017 Key Media Pty Ltd

Project from Create Properties has been attracting more than a little interest

Simon Briault
The Vancouver Sun

Second + Main

Project location: 180 East 2^nd Ave., Vancouver

Project size: 233 homes ranging in size from 479 to 999 square feet and price between the mid-$500,000s and $1.5 million. Home styles: studios, one-bedrooms, Micro 2 suites, two-bedrooms, two-bedroom plus den and three bedrooms

Developer: Create Properties

Architect: DYS Architecture

Interior designer: False Creek Design

Sales centre: 180 East 2^nd Avenue

Telephone: 604-877-3222

Hours: By appointment

Website: secondandmain.ca

In a city like Vancouver, where space is at a premium and highrise apartment living is the norm for many, it can sometimes be hard to find a multi-family project where residents are truly able to feel a part of the community in which they live. In this context, Second + Main is an exception.

In addition to the 233 homes on offer, this low-rise, mixed-use building incorporates commercial retail space on the ground floor and a plan by the City of Vancouver to develop below-market housing and an artists’ production space. Create Properties and Northchild Developments acquired the project from the Aquilini group and are working with DYS Architecture, Urban One Builders and False Creek Design Group to bring their vision of an accessible, dynamic housing project to life.

“The project really takes into account the vibrancy of the area and we’re ensuring that we maintain a meaningful connection with Mount Pleasant’s artist community,” said Lucas van den Berg, a real estate developer and the founder of Create Properties. “The terracing in the design of the building addresses the visual-impact considerations for the neighbourhood. We’ve got plentiful green roofs and gardens on top of this building and that’s going to be great for residents in terms of the liveability of the place.”

Second + Main has a retail breezeway running right through the building, opening out into a public courtyard. The City of Vancouver will retain some rights to use the space for public gatherings and art shows and there will be public art on permanent display as well. In addition to the 233 market units at Second + Main, the first three floors of housing along Second Avenue will comprise 30 below-market housing units aimed at working artists and those on lower incomes. These homes have a private entrance and a private rooftop and green space.

“Mount Pleasant is not only an eclectic community of artists, bistros and brew pubs, it’s also a light industrial area that is really in transition,” van den Berg said. “I’m always shocked walking in the neighbourhood at how many hidden gems you can find here. As a first public project for both ourselves and Northchild, we feel like Second + Main represents the scale of what we’re trying to do very well and highlights the importance we place on being at the heart of the action.”

“A lot of my work in the past in Vancouver has had to do with social housing, so being able to address the housing concerns here by being active in the development industry is very exciting for me,” van den Berg added. “It’s obviously a business, but the City of Vancouver is doing great work with the social housing component of this project and we’re proud to be a part of that.”

Interest from the locals as well as investors has been intense, according to van den Berg. People have been lining up for the previews and there have been more than 2,000 registrations already.

“We’ve got some exceptionally smartly crafted and efficiently designed homes,” van den Berg said. “This really comes down to value. We’ve maximized the utility of these homes, so if an owner needs to bring a roommate in to be able to afford a suite, we’ve allowed for that in the way we’ve designed the units.”

The “Micro 2” suite at the sales centre showcases a pull-out dining table, convertible living room and bedroom spaces and customizable storage units. The kitchens at Second + Main feature European cabinetry, mirrored backsplashes and polished quartz countertops. Bathrooms have large-format porcelain floor and shower wall tiles, wall-hung toilets and in-shower storage niches.

The building also features a rooftop garden, two outdoor kitchens with barbecues, fridges and sinks, a fitness room, a children’s play area, a lounge room with a full kitchen and a bike-wash and bike-repair room. There will be secure underground parking for residents and the developers are targeting LEED Gold certification upon completion.

 “We’re really interested in being able to reach local buyers,” van den Berg said. “We’re looking to have a very efficient use of space, not just in the two- and three-bedroom homes, but also in the smaller units. So even if you’re looking at a smaller home, you’re going to be able to get a lot for your 600 square feet. The idea is to put these homes within the reach of as many local owner occupiers as possible and allow them to max out what they can afford.”

Second + Main has a huge range of home styles to choose from: studios, one-bedrooms, the aforementioned “Micro 2” suites, two-bedrooms, two-bedroom plus den and three bedrooms. They are between 479 and 999 square feet. Prices start in the mid $500,000s and top out at about $1.5 million. The building is scheduled for completion in late 2019 or early 2020.

© 2017 Postmedia Network Inc.

Scott Brown
The Vancouver Sun

A proposal to restrict vehicle traffic and turn Water Street into a “pedestrian priority” roadway is one of the ideas the city of Vancouver is hoping to get feedback on as it opens public consultation on a planned “major rehabilitation” of Gastown.

The city aims to learn as much as possible about how people travel and experience Vancouver’s oldest neighbourhood through a process that involves an online survey along with public walking tours and a workshop in the Woodward’s atrium on Oct. 21. 

The cobble-stoned Water Street was identified in city’s Downtown Eastside Plan and Transportation 2040 as a potential car-light street and as a missing link within the city’s east-west bike network. 

“We have an opportunity to build on the strengths of Gastown and design the streets in a way that better serves the area. We want to work with the community to achieve the best outcome,” said Lon LaClaire, Vancouver’s director of transportation. “As part of our community engagement, we will be exploring whether Water Street could become car-light, but it is important to us to work closely with businesses in the area to see how the streets can continue to support loading and movement needs.”

Car-light refers to a street design that reduces the number of vehicles travelling through an area in order to create more inviting spaces for people to walk, cycle, and enjoy. According to the Transportation 2040 plan, creating a “pedestrian priority street” could be as simple as widening sidewalks with modified parking arrangements or creating a car-free zone for parts or all of the day. 

Other streets identified as future pedestrian priority areas are Hamilton and Mainland Streets in Yaletown and Robson Street in the downtown and west end. City councillors voted last summer to permanently close a section of Robson, between Howe and Hornby, to traffic.

Public consultation is Phase 1 in the city’s Gastown Complete Street plan. Phase 2 is developing a design for future Gastown streets, and Phase 3 involves the construction and implementation of the design. The city has not a provided a deadline for completion.

© 2017 Postmedia Network Inc.

Mayor moves to offer locals first crack at condo pre-sales

Scott Brown
The Vancouver Sun

Mayor Gregor Robertson will introduce a motion at the next meeting of city council (Oct. 17) that he hopes will stop real estate developers from offering out-of-province buyers first-crack at condo pre-sale opportunities in Vancouver.

In a statement released on Friday, Robertson says the proposed policy, which he intends to put in place by the end of the year, will give priority to local residents for sales of new homes in multi-family developments as part of the city’s new 10-year housing strategy.

The city defines local residents as people who live and work in Metro Vancouver and whose permanent address and place of work is in the region, regardless of citizenship.

“My priority as mayor is to deliver new housing supply that is first and foremost for people who live and work in Vancouver, and this motion aims to give local residents the first opportunity to purchase a new home,” said Robertson. “In Vancouver’s red-hot housing market, local employers are crunched to retain talent, whether they’re doctors, tech workers, retailers, firefighters, teachers or nurses. I regularly hear stories about people who work in Vancouver, but are forced to move elsewhere in the region because they can’t find a place to live. At a time when we are seeing record levels of housing construction, local residents should be able to get the first shot at purchasing a home in new developments.”

West Vancouver introduced a similar policy in 2016 when the city negotiated an agreement with Westbank Corp. development for a new condo project that prioritized local residents. Stipulations included:

• Requiring the project to be only marketed to West Vancouver residents during the first 30 days, and then the next 60 days to residents of Metro Vancouver;
• Requiring purchasers to sign a statutory declaration to demonstrate their intention to live in the building and not flip their unit;
• Restricting bulk purchases of units.

“Vancouver’s Housing Vancouver strategy seeks to dramatically increase the supply of new housing, but it needs to be the right supply — homes that are affordable for people who live and work in Vancouver,” said Robertson. “We want young people and families to put down roots in the city. This motion will support that by helping make sure people who live and work here get the first opportunity to buy into new developments in Vancouver.”

© 2017 Postmedia Network Inc

Ephraim Vecina
Canadian Real Estate Wealth

Residential property sales in the Greater Vancouver area shot up by 25.2% on a year-over-year basis last month, a development that the region’s real estate board attributed to the sustained strength of the apartment and townhouse segments.

In its latest report, the Real Estate Board of Greater Vancouver (REBGV) stated that the region’s September sales numbers (which totalled 2,821) were 13.1% above the 10-year sales average for that particular month.

“Our detached homes market is balanced today, while apartment and townhome sales remain in sellers’ market territory,” REBGV president Jill Oudil said.

Out of a total of 9,466 homes currently listed for sale in Vancouver’s MLS® as of September, 5,375 of these were detached, attached and apartment properties, representing a 12% year-over-year increase and a 26.6% climb from August 2017.

The sales-to-active listings ratio across all residential asset classes last month was 29.8%. By property type, apartments and townhomes clearly dominated at 60.4% and 42.3%, respectively. In contrast, the ratio for detached homes was only 14.6%.

The MLS® Home Price Index composite benchmark price for all residential properties in the REBGV’s jurisdiction was $1,037,300, rising by 10.9% from September 2016.

Apartment property sales increased by 19.1% on an annual basis in September, up to 1,451. The benchmark price of an apartment unit stood at $635,800, growing by 21.7% year-over-year.

Meanwhile, attached property sales in the same month went up by 40.4%, totalling 518 transactions. The benchmark price in this asset class was $786,600, an increase of 14.5% from the previous year.

“This dynamic has slowed the pace of upward pressure that we’ve seen on detached home prices in our market over the last few years,” Oudil stated.

The REBGV’s full report on its September 2017 data can be accessed here.

Copyright © 2017 Key Media Pty Ltd

Steve Randall
REP

The Ontario government has announced proposals to strengthen consumer protection for real estate transactions and two industry bodies have been quick to commend the move.

The government announcement – which was expected following the Fair Housing Plan published earlier in the year and a consultation over the summer – says that if passed, the legislation would

“Introduce stronger rules and professional standards in the real estate sector, including new measures to address conflict of interest issues that arise in multiple representation situations and heavier fines for Code of Ethics violations by real estate professionals.”

Reacting to the announcement, the Ontario Real Estate Association welcomed the proposed Mandatory Designated Representation (MDR) model and said it would set a North American leading standard for transparency and enhance clarity of the duty of Realtors.

“These new rules are some of the strictest in North American when it comes to transparency and consumer protection,” said Ontario Real Estate Association President-Elect David Reid. “Ontario Realtors were pleased to work with the Government to bring more clarity to the duties of a Realtor to a consumer and address any real or perceived conflict of interest.”

On tackling unacceptable behaviour by real estate agents and brokers, OREA CEO Tim Hudak added: “Right now, too often fines amount to a mere slap on the wrist. Ontario needs much stronger deterrents for unethical behavior and a regulator that isn’t afraid to throw the book at the small number rule breakers.”

The Real Estate Council of Ontario also welcomed the announcement as regulator of the industry and said it was a step towards implementing stronger protection for consumers.

The full proposals are available on the Ontario government website.

Copyright © 2017 Key Media Pty Ltd

The Grande a merging of the contemporary and the timeless

Mary Frances Hill
The Province

The Grande

Where: 300 Morrissey Road, Port Moody

What: 26-storey tower with 220 homes in the Suter Brook Village community

Developer and builder: Onni Group

Residence sizes and prices: 1, 2 and 3 bedrooms, 600 — 2,100 sq. ft., up to $2.7 million

Sales centre address: 601 – 220 Brew Street, Suter Brook Village

Sales centre hours: noon — 6 p.m., Sat — Thurs

After years of building in Port Moody, it’s clear the Onni Group knew it was on to a good thing.

By the time The Grande rises at Suter Brook Village, the neighbourhood will comprise some 1,500 homes, catering to a range of buyers, including downsizers and young families. Since 2005, when the first of the Suter Brook Village buildings took root, the real estate market has boomed. Yet Onni has made sure the original vision of interior layouts remains true to its origins — for the most part.

“As buildings have continued to rise in the neighbourhood, suite layouts have actually not seen a substantial change, except with the most recent focus on creating even larger living [area] floor plans for a more mature demographic,” says Maxime Zentner, an interior designer with the Onni Group.

Zentner led the design on The Grande’s display vignettes, which show exact kitchen layouts and two types of washrooms at the Suter Brook Village display space.

Another dramatic change over the years can be seen in the quality of finishes, she says. Today, buyers are looking for finishes that simultaneously keep up with contemporary trends and always look luxurious, but still come off as timeless. That is a difficult balance, but Zentner is confident Onni achieved it through simplifying the designs in the details.

 

 “Elements such as handles and hardware have the potential to become dated over time, so by minimizing those details, we’ve learned to create designs which stand the test of time even more successfully,” Zentner says.
“With The Grande, we also ventured into incorporating new high-end details never done before in Port Moody, such as integrated appliances and authentic marble washroom tiles, backsplashes and vanities.”
The West Coast finishing scheme is marked by its chocolate wood-toned cabinetry “and evokes a sense of drama and luxury through contrast, which draws your eye to the luxe marble as a distinct focal point,” Zentner says. “The Evergreen scheme creates a calm sophistication and elegance through timeless material subtlety,” she says.

The ensuite bathroom in the display space appeals to visitors, thanks to Zentner’s and fun mix of materials, such as the tile that covers one side of the bathroom (encompassing the tub, tub wall and shower), which offers a bold contrast to the darker marble countertop atop the sleek, more monotone light cabinetry.

“The selection of warm chocolate-tinted vanity marble paired with the light grey marble wall tile and natural wood cabinetry offers a balance of material tones in the master ensuite,” she says. “Your eye is drawn to the unique beauty of the countertop stone, then easily flows through the rest of the bathroom details and finishes.”

© 2017 Postmedia Network Inc.