Aleksandra Sagan
Canadian Real Estate Wealth

Home sales in Metro Vancouver fell more than 14 per cent below the 10-year average in February as buyers contended with stricter mortgage rules and higher interest rates, according to statistics released Thursday.

The Real Estate Board of Greater Vancouver’s data showed that 2,207 homes sold last month. That’s down nine per cent from the same time last year and 14.4 per cent from the 10-year February average.

Detached homes experienced the biggest drop, down 39.4 per cent compared to the average. Townhomes fell 6.8 per cent, while condos rose 5.5 per cent.

“Rising interest rates and stricter mortgage requirements have reduced home buyers’ purchasing power, particularly for those at the entry level of our market,” Jill Oudil, president of the Real Estate Board of Greater Vancouver, said in a statement.

The Office of the Superintendent of Financial Institutions implemented new lending guidelines in January that require borrowers who don’t need mortgage insurance to show they would still be able to make payments if interest rates rise.

Additionally, the Bank of Canada has raised rates three times since the summer of 2017 to the current overnight rate of 1.25 per cent. Such hikes increase the cost of variable-rate mortgages. They have also increased the cost of new fixed-rate mortgages as yields on the bond market have moved higher.

“Even still, the supply of apartment and townhome properties for sale today is unable to meet demand,” Oudil said.

“On the other hand, our detached home market is beginning to enter buyers’ market territory.”

In February, the sales-to-active listings ratio for townhomes and condominiums was 37.6 per cent and 59.7 per cent, while for detached homes it was 13 per cent.

Downward pressure on home prices tends to happen when the ratio dips below 12 per cent for a sustained period, while upward pressure tends to occur when it falls above 20 per cent for several months.

The benchmark price for detached homes remained virtually unchanged from January 2018 at $1,602,000 in February. The benchmark price for condos rose 2.6 per cent from January to $682,800 and for townhouses jumped 1.9 per cent to $819,200.

Spring time tends to be the busiest for home buyers and sellers in Metro Vancouver, said Oudil, adding the board will wait to see how they react to taxes and other policy measures the B.C. provincial and federal governments introduced so far in 2018.

In late February, the B.C. government unveiled its provincial budget that included a housing plan aimed at improving affordability in the real estate market.

The plan raises the foreign buyers’ tax from 15 per cent to 20 per cent, and expands it from Metro Vancouver to include the Fraser Valley, Central Okanagan, the Nanaimo Regional District and the Victoria area. The change is already in effect.

The government will also introduce a speculation tax in the fall. The annual property tax will target foreign and domestic homeowners who do not pay income tax in B.C.

Copyright © 2018 Key Media Pty Ltd

THE NEEDS OF RESIDENTS DRIVING CONDO DESIGN

Rebecca Keillor
The Vancouver Sun

Condominium design is changing in Vancouver, says Jason Turcotte, vice-president of development at Cressey Development Group, with much greater emphasis being placed on amenities and outdoor living spaces. This reflects the way people are seeing them: more as their long-term, permanent homes, not just stepping stones towards something bigger, he says.

“Condos are becoming a permanent living solution rather than just a step along the way for new homebuyers and downsizers,” says Turcotte. “The industry as a whole is adapting, placing greater importance on the space outside the condo.”

Turcotte says Cressey projects that reflect these changes include Hensley  — a condo and townhouse development in West Coquitlam — where they’ve designed more “flexible, unprogrammed amenities spaces, allowing homeowners to shape the space to their needs.” Among the amenities are a fitness centre, health club and a “triple-height penthouse amenity space that features a large atrium that can accommodate private or group events or be used for lounging.”

Interior designer Linda Gallo of Vancouver’s Insight Design Group has also noticed these changes in condo design.

“Families are moving into these condos more and more, and the amenity spaces have been getting larger and more grand as time has gone on,” she says.

Gallo says that 10 years ago, a building would maybe have a gym and meeting room, and that would have been it. A project like Hensley has an entire floor dedicated to amenities, such as a pool, sauna, gym and flex space to suit the residents’ needs.

She says that when working with companies like Cressey, floor plans have become a lot more customized to suit different types of condo dwellers.

“We designed, for instance, two different kitchen-and-bathroom concepts [for Hensley], one for the purchaser who is going to be living there and needs a ton of storage and places to put things, so it has huge pantries and things like this, versus more of  a satellite homeowner who will be coming and going, and more wants their place for entertainment. So they have a bar instead of an extra pantry, and their bathroom is a little more decorative and showy, versus the other scheme, which has lots more storage and drawers and medicine cabinets, so really giving people a lot of choice because we find there’s a lot of different purchasers out there.”

Vancouver designer Anita Curry of Avenue Spaces is very familiar with the needs of condo dwellers, with more than half of her clients moving into smaller spaces. She says these can offer elements that family homes don’t always offer, such as proximity to “amenities (like transit), having newer/more modern appliances, and being a lot easier to maintain and care for”.

Curry also has some good advice for those moving from larger homes into condominiums.

“Many people think they can simply move their existing furniture to a condo, but find it doesn’t work, and if it doesn’t work, it doesn’t feel right and people aren’t happy,” she says. “With condo design and furnishing, everything has to have purpose and function.

“So you maximize on every bit of space you have. It’s also really important to look for furniture specifically designed for condo living, which can save you money and space.  These pieces often double up in function, like a console table for keys and mail that doubles as a desk and second office.”

Curry also advices choosing lighter colours for sofas and chairs, and using a a lot of glass for side tables, and media units, so they “disappear into the walls creating the illusion of a bigger space”.

“People tend to go dark because they’re afraid of getting it dirty,” she says. “But they really make a small space feel even smaller, dingy and dirty, as the contrast against lighter walls make the space feel like it’s caving in on you.”

© 2018 Postmedia Network Inc.

LOCK-OFF SUITES CAN ACT AS HANDY MORTGAGE HELPERS

Michael Geller
The Vancouver Sun

As Lower Mainland municipalities struggle to provide more affordable housing choices, they might explore the top of a nearby mountain.

Throughout B.C., the most affordable form of housing is often the basement suite. Sometimes it is legal; more often, it is not. While it may provide rental housing in perpetuity, it can also be taken over by homeowners as their family size increases or financial situation improves.

In areas of a city near a university, these basement suites are particularly popular with students, and can serve as ‘mortgage helpers’ for homeowners.

It was within this context that the idea of legalized secondary suites within multi-family housing developments was conceived 16 years ago at UniverCity, the model sustainable community next to SFU on Burnaby Mountain.

Both the university and Burnaby wanted to provide affordable housing for students within the community. So in 2002, Burnaby’s forward-looking planners and council agreed to a request from the SFU Community Trust to approve zoning changes to allow secondary suites within suites in up to 50 per cent of the apartments in multi-storey buildings and townhouses, subject to certain conditions.

The suites had to have a minimum size of 240 square feet and comprise no more than 35 per cent of the total suite size. They could have their own entry from the corridor, as well as bathroom and cooking facilities, but could not be subdivided as a strata lot or sold separately.

Small suites may often not be affordable if they must include their own parking space, so to address this, Burnaby agreed to significantly reduce the parking requirement.

To further improve affordability, the units were designed without in-suite washers and dryers. The bylaw therefore required a minimum of 10 suites in any one building to support common laundry facilities.

From the onset, there was uncertainty whether developers would build such an innovative form of housing. The city therefore agreed that units could be designed with only a closet with the ‘rough-in’ for the future kitchen; the appliances and cupboards did not need to be provided at initial occupancy.

The additional cost of creating the suites — as opposed to just an additional bedroom — is difficult to estimate since it depends on the building type and location. However, the rough-in includes additional wiring, fireproofing, venting, a door to the corridor door and mailbox. (We nearly forgot the mailbox!) Kitchen fixtures and appliances can be added later.

As is the case with any innovative idea, there were unforeseen challenges. These included how best to allocate parking. At UniverCity, some purchasers of units with a secondary suite acquired an additional space; however, the majority did not. In future, where there is adequate transit and car-sharing, I would hope municipalities would not require any parking for these units.

This concept only works if the local government does not count the secondary suite as another unit when determining allowable density or applicable development cost charges or levies. Both the municipality and Metro Vancouver were accommodating in this regard.

When I initially proposed this idea, it was anticipated the suites would be included in three-bedroom units, possibly separated from the other bedrooms by the living/dining area. However, many Vancouver-area developers are reluctant to build three-bedroom suites because of the increased size and sales price.

Consequently, most of the first units were in two-bedroom-and-den apartments.

Another project at UniverCity included secondary suites in ground-floor townhouse-style units with separate entries to an outside walkway.

In future, I believe developers would be more likely to build three-bedroom apartments with separate suites if mortgage lenders would recognize their rental income when qualifying purchasers for a mortgage. Since this happens when someone buys a single-family home with a ‘mortgage helper’, it would seem to make sense for buyers of apartments and townhouses with separate suites, provided they are permitted by zoning.

Some developers may be reluctant to build accessory suites in apartments because they prefer not to include common laundry facilities. However, as we attempt to reduce the cost of new housing, perhaps it is time to rethink whether every apartment needs to have its own washer and dryer. (After all, many of us met our life partners in apartment building laundry rooms.)

In 2009, the City of Vancouver agreed to amend some of its zoning bylaws to allow secondary suites in apartments and townhouses in certain neighbourhoods. At first, few were built, since most developers were not aware of this zoning provision. However, city planners are now encouraging them in locations such as the Cambie Corridor, where a number of lock-off suites have been built in townhouse units.

The need for family-sized apartments and affordable rental housing is not restricted to Vancouver or Burnaby.

For this reason, North Vancouver has recently allowed secondary lock-off suites in some new townhouse developments.

Last year I tested the concept with some West Vancouver residents, where the need for new housing choices and rental housing is becoming critical. Based on the positive response, I will shortly be presenting staff and council with plans for a new Ambleside community that includes apartments and townhouses with lock-off suites.

Hopefully, if Vancouver, Burnaby, the city of North Vancouver and West Vancouver can all support this concept, other municipalities will soon follow and make the necessary zoning changes.

While lock-off suites can provide more affordable rental housing and a mortgage helper for a growing family, they could also be perfect for an aging parent, caregiver or teenager.

It’s an idea whose time should come.

© 2018 Postmedia Network Inc.

Main and Twentieth keeps community living in mind

Michael Bernard
The Vancouver Sun

Main & Twentieth

Project Address: 209 East 20^th Ave. Vancouver

Project Scope: A boutique collection of 42 one- and two-bedroom and loft homes. Most homes surround an interior courtyard with green space and lounge areas. All homes feature open layouts with abundant natural light, stylish designer kitchens, efficient floor plans and generous outdoor spaces. The ground floor will include a variety of retail. Homes range in size from 620 sq. ft. for a one-bedroom loft to 942 sq. ft. for a two-bedroom home.

Prices:  One-bedroom loft homes starting from $799,900; two-bedroom homes starting from $945,900

Developer: Landa Global Properties

Architect: Yamamoto Architecture

Interior Designer: In house

Sales Centre: By appointment only at the Landa head office downtown

Centre Hours: by appointment

Sales Phone: 604-879-8811   

Website: https://www.landaglobal.com/maintwentieth

Occupancy: Winter 2019

A Vancouver developer has employed an ancient building design to appeal to a new hip generation in the rapidly evolving and increasingly popular Mount Pleasant neighbourhood of Vancouver.

Both the Romans and the Chinese first used the interior courtyard centuries ago in their building designs for heating, cooling and even residential security, but Landa Global Properties has a different goal in incorporating the concept in its 42-unit Main & Twentieth condo project.

“We are really excited about bringing this new condo development to this Main Street neighbourhood,” says Landa CEO Kevin Cheung. “Living in a condo often means it’s hard to get to know your neighbours, but the courtyard design allows people to come together in a mini community within the building.”

The courtyard will offer an outdoor lounge, green communal space and Zen garden, creating an area where homeowners can interact more and enjoy a sense of community within the development’s walls.

The project will include shrubs and a large tree in the central courtyard as a major green feature. As well, all plants meet bird-friendly habitat guidelines to encourage wildlife and are serviced by a drip-line style irrigation system, which the city permits to be operated when other irrigation systems are restricted during summer months.

“It’s a really eclectic, family-friendly, community-oriented part of the city and I think buyers will appreciate the interior courtyard, which is a rare offering in Vancouver condos and will provide light coming in on two sides,” Cheung said.

Main Street through Mount Pleasant has already earned a place on the 15-city list of Cool Streets of North America, a survey conducted by the New York-headquartered real estate firm Cushman and Wakefield, which has identified “bohemian enclaves and focal points for local arts, music or the LGBT community.” Mount Pleasant is only one of two in Canada on the list; the other is Toronto’s Queen Street West.

Main & Twentieth will have retail and commercial on the ground level of the modern design building. The developer adopted a modern, minimalist style for both the building exterior and the home interiors, adding a touch of warmth inside through features such as the textured laminate wood-finish cabinetry.

Cheung says a challenge the project presented was to find a balance between the unit size and its layout, which meant making the floor plan very compact yet functional.

“Our floor plans were designed for the busy lifestyle and growing family needs with most of them featuring multiple-use flex space to accommodate different needs,” he said. The same thinking was behind the idea of offering lofts, which combine trendy split level living with a more efficient floor plan.

Some of the loft units come with a private entrance at street level and private yards and all feature living rooms with high ceilings. Engineered hardwood flooring is laid throughout the living, dining and bedroom areas. All homes feature a Blomberg washer and dryer.

The developer kept strata costs down by relying on the neighbourhood’s proximity to publicly available amenities, such as the community centre, rather than trying to create something within the complex.

Each unit boasts a full line of premium kitchen appliances by Miele, including a four-burner gas cooktop and built-in wall oven, integrated refrigerator and dishwasher, and built-in microwave and hood fan. Cabinetry is designed by the Italian firm Aster Cucine, and countertops are made of quartz with ceramic style backsplashes.

Contemporary ALT Progretto Aqua faucet and shower kits are used in the ensuites and guest bathrooms, which come with polished quartz counters and Aster Cucine cabinets, porcelain floor tiles and shower wall tiles.

Penthouses feature rooftop garden areas with dividers for privacy. For all suites, there is provision for storing bikes and additional storage. New homeowners receive Telus Optik TV, Internet and home phone service for free for the first year.

© 2018 Postmedia Network Inc.

Vancouver home sales fall amid changes to mortgage rules, higher interest rates

ALEKSANDRA SAGAN
The Vancouver Sun

Home sales in Metro Vancouver fell more than 14 per cent below the 10-year average in February as buyers contended with stricter mortgage rules and higher interest rates, according to statistics released Thursday.

The Real Estate Board of Greater Vancouver’s data showed that 2,207 homes sold last month. That’s down nine per cent from the same time last year and 14.4 per cent from the 10-year February average.

Detached homes experienced the biggest drop, down 39.4 per cent compared to the average. Townhomes fell 6.8 per cent, while condos rose 5.5 per cent.

“Rising interest rates and stricter mortgage requirements have reduced home buyers’ purchasing power, particularly for those at the entry level of our market,” Jill Oudil, president of the Real Estate Board of Greater Vancouver, said in a statement.

The Office of the Superintendent of Financial Institutions implemented new lending guidelines in January that require borrowers who don’t need mortgage insurance to show they would still be able to make payments if interest rates rise.

Additionally, the Bank of Canada has raised rates three times since the summer of 2017 to the current overnight rate of 1.25 per cent. Such hikes increase the cost of variable-rate mortgages. They have also increased the cost of new fixed-rate mortgages as yields on the bond market have moved higher.

“Even still, the supply of apartment and townhome properties for sale today is unable to meet demand,” Oudil said.

“On the other hand, our detached home market is beginning to enter buyers’ market territory.”

In February, the sales-to-active listings ratio for townhomes and condominiums was 37.6 per cent and 59.7 per cent, while for detached homes it was 13 per cent.

Downward pressure on home prices tends to happen when the ratio dips below 12 per cent for a sustained period, while upward pressure tends to occur when it falls above 20 per cent for several months.

The benchmark price for detached homes remained virtually unchanged from January 2018 at $1,602,000 in February. The benchmark price for condos rose 2.6 per cent from January to $682,800 and for townhouses jumped 1.9 per cent to $819,200.

Spring time tends to be the busiest for home buyers and sellers in Metro Vancouver, said Oudil, adding the board will wait to see how they react to taxes and other policy measures the B.C. provincial and federal governments introduced so far in 2018.

In late February, the B.C. government unveiled its provincial budget that included a housing plan aimed at improving affordability in the real estate market.

The plan raises the foreign buyers’ tax from 15 per cent to 20 per cent, and expands it from Metro Vancouver to include the Fraser Valley, Central Okanagan, the Nanaimo Regional District and the Victoria area. The change is already in effect.

The government will also introduce a speculation tax in the fall. The annual property tax will target foreign and domestic homeowners who do not pay income tax in B.C.

© 2018 Postmedia Network Inc.

B.C. government, Metro Vancouver break ground on affordable-housing project

Scott Brown
The Vancouver Sun

The B.C. government broke ground Friday on the first phase of an affordable-housing project that will replace 86 aging housing units with 230 new rental homes to provide affordable housing for people with a mix of incomes in Vancouver’s Fairview neighbourhood.

Heather Place, which is being built at 725-799 West 14th Ave in partnership with the Metro Vancouver Housing Corporation, is the first project in the province’s commitment to build 1,700 affordable rental-housing units over the next four years.

Phase 1 will include 67 units of varying sizes, from studios to three-bedroom homes.

The province says 30 of the homes will have rent geared to income with a projected range of approximately $380 to $1,100 per month. The remaining will be “low-end market rentals,” with rents projected to start at approximately $1,500 per month.

“When people have safe and affordable housing, they can focus on building the life they want for themselves and their families,” said Selina Robinson, Minister of Municipal Affairs and Housing. “This project will deliver the affordable homes people in Vancouver need, with easy access to community amenities, schools and transit.”

Metro Vancouver is contributing $21.3 million to Phase 1, while the province is kicking in $6.7 million in capital funding.

The NDP government’s 2018 budget pledged more than $7 billion over the next 10 years towards housing affordability. 

Phase 1 of the Heather Place redevelopment is expected to be completed by winter 2019.

© 2018 Postmedia Network Inc.

Steve Randall
Canadian Real Estate Wealth

British Columbia and Alberta will be joined by Prince Edward Island and Newfoundland and Labrador in leading provincial growth in 2018.

The Conference Board of Canada’s winter outlook forecasts BC’s economy to grow 3.1% this year, with growth of 2.8% forecast for Alberta and P.E.I., and 2.6% for Newfoundland and Labrador.

“British Columbia’s economy still has a lot of momentum and will be the only province to see economic growth above 3 per cent this year,” said Marie-Christine Bernard, Director, Provincial Forecasting, The Conference Board of Canada. “Most provinces will perform well, though some will see their economic growth moderate this year.”

Ontario and Quebec will see their economic performance moderate from close to or above 3 per cent growth last year to around 2 per cent in 2018.

Copyright © 2018 Key Media Pty Ltd