At Boffo Properties? Haven, the design is in the details

Mary Frances Hill
The Province

Haven

What: 45 townhomes with three or four bedrooms

Where: 2560 Pitt River Road, Port Coquitlam

Residence sizes and prices: 1,312 to 1,843 sq. ft; prices starting in the mid $700,000s

Developer and builder: Boffo Properties

Sales centre: 16 — 2560 Pitt River Road, Port Coquitlam

Hours: noon — 5 p.m., Sat — Thurs

Telephone: 604-690-6672

At Haven, Boffo Properties’ planned community in Port Coquitlam, Joanne Laurino has created sophisticated spaces with the comfort homeowners want and a respect for the flexibility and practicality that they need.

When Laurino and her colleagues at Ross & Company Interiors first examined the specifications for the townhomes’ interiors, they were pleased to see a lamp that stretches from the wall into the kitchen prep area. So they added a large ceiling fixture in a similar form — a desk-like work light in a black metal thin silhouette extending from long-hinged arms.

The fixture, inspired by the style of the late French industrial designer Serge Mouille, hangs in the centre of the ceiling over the living room space, in contrast to the mostly white palette of the room and a stark white sofa.

“We knew we wanted to bring black accents into the otherwise fresh white space to ground the room, and we thought this light would allow us to do that, while also bringing lots of visual interest with its strong lines,” Laurino says.

 “We chose this light because we liked how it didn’t take away from the space, because of how closely it could be mounted to the ceiling, complementing the room, rather than being an obstruction.”

In that same living room, a dark wood armchair provides the space with a mid-century modern feel.

“We always try to incorporate an armchair or two in the living room when we can because we like how that allows for not only additional seating, but also flexibility in using the space,” Laurino says. “We liked how this chair brought wood tones into the room to warm it up.” Laurino says she and her colleagues wished, above all, to stay flexible and adaptable with furnishings.

That flexibility extends to the banquette seating beneath two shelves in the dining area. It’s practical and looks as if it naturally belongs with the shelves as part of a wall unit. “We always want to take into consideration how the space is going to be used and we thought the use of a banquette, with storage above and around it, would allow for ample storage, circulation and seating in the space, which checked a lot of boxes.”

Haven is within a few minutes’ walk of Gates Park, the largest in Port Coquitlam, and that green space is referenced in the design of Haven. “We considered how it is located near water and lush greenery, and we used that inspiration to influence our design decisions in not only designing the show homes, of course, but also in picking the finishes when designing the project,” she says. “In doing so, we incorporated wood finishes, with warm tones and also some organic lines.”

© 2018 Postmedia Network Inc.

Zillow is further expanding its direct homebuying and selling program

Ryan Smith
other

Zillow is further expanding its direct homebuying and selling program, the company has announced.

Zillow Offers will be launched in Atlanta in the fall, Zillow said. Atlanta will be the third market in which Zillow will buy homes directly, prepare them for sale, and list them. Zillow Offers is currently available in Phoenix and Las Vegas.

According to Zillow research, 71% of home sellers are simultaneously trying to buy a home – which can add stress and extra complexity to the process.

“With Zillow Offers, potential home sellers can request an offer and, within two business days, receive a free, no-obligation cash offer from Zillow – an opportunity to sell their home on their own timeline,” Zillow said.

“Sellers love Zillow Offers, because it’s a service that offers them more control and convenience – and less stress – when they sell their homes,” said Jeremy Wacksman, Zillow brand president. “Zillow has delivered that to sellers in our first two markets, and we’re excited to expand into Atlanta. Once we launch the program in the fall, we will be able to provide Atlanta-area homeowners with more choices, greater control, certainty about price, and transparency when it comes to selling their home – whether they take a cash offer or sell traditionally with a premier agent.”

Copyright © 2018 Key Media Pty Ltd

Regulatory change will help strata corporations enforce bans or restrictions on short-term rentals, and raises fines to $1,000 a day

Joannah Connolly
Western Investor

Owners and investors who rent out their condos on platforms such as Airbnb and VRBO are about to face another hurdle, with the provincial government taking steps to ensure any rental condos are in the long-term pool.

Under changes to the Strata Property Regulation announced July 18, renting out a condo unit on a short-term basis will be more clearly defined as a “commercial use” rather than a regular long-term rental. Even if the building’s bylaws allow regular rentals, short-term rentals will be considered different and residents will be subject to severe fines if bylaws are broken. The current maximum fine of $200 a week for breaking short-term rental bylaws will be raised to up to $1,000 a day.

“The new regulations will help define short-term commercial use as a different function than rentals, and provides some very real consequences for the violators,” said Tony Gioventu, executive director, Condominium Home Owners Association of B.C., who was at the announcement and has been working with the B.C. government on the changes.

“For those strata corporations who prohibit short-term use, this is a valuable amendment. It will require strata corporations to amend their bylaws at a general meeting to permit the higher penalties, which in turn will provide the strata with a great opportunity to make sure the strata’s bylaw complies with provincial legislation.”

In its announcement, the province also pointed out that short-term rentals can have additional disadvantages other than taking units from the long-term rental pool. These problems including risks to building security as unvetted vacationers are given access to the building, noise issues with renters who do not live long-term in the building, renters not knowing or showing disrespect for the building’s rules and residents’ needs, incorrect garbage disposal, and so on.

Housing minister Selina Robinson said, “We’ve all heard the stories of renters losing their homes when units are pulled out of the rental market to be used as short-term rentals. With this change, we can ensure there is long-term rental stock for people and families who need them. As part of our 30-point plan to improve housing affordability in B.C., we are supporting strata corporations to both deal with the noise and security issues that can sometimes come with short-term rentals, and also preserve rentals for the long term.”

The B.C. government said the regulatory change will take effect on November 30, 2018, “in order to allow short-term rental hosts time to adjust bookings and comply with a strata’s short-term rental bylaws.”

Copyright © 2018 Western Investor

Concord Pacific fights Porteau Cove mining permits in BC Supreme Court

Darryl Greer
Western Investor

When stonemason Jody Parry applied for mining permits on lands near Porteau Cove in Squamish a few years ago, he had his eyes on mineral-rich boulders littering the barren landscape for his company, Bellaroc Masonry, to source its granite.

“That’s what we do – we break rocks and put them on houses,” Parry said.

A Squamish resident of nearly 40 years, Parry represents the third generation in the family business.

The local stonemason is up against one of the country’s largest real estate developers in a court fight over Howe Sound property.

Parry knew the site where he’d applied to mine was once a sand and gravel pit run by John Deeks, whose employees lived in a small community in Porteau Cove until the Great Depression. Deeks’ legacy in the area remains, with a lake, a peak and a creek bearing his name.

But what Parry didn’t know is that his permits, good for five years, were stepping on the toes of Concord Pacific, one of the country’s largest developers. Dating back to 2004, Concord’s plans for a 1,400-home community in Porteau Cove were sunk by the global financial crisis of 2008. Since then the lands have sat empty and were mired in controversy when the company bought out its former development partner, the Squamish Nation, for $1.

“I didn’t even honestly know who Concord was at that time,” Parry said in a phone interview.

Concord is taking the province’s Chief Inspector of Mines to court over Parry’s mining permits, claiming they imperil the company’s plans for the site, which it hopes to start building on in 2019. Concord, through a numbered company and a limited partnership, filed a petition in BC Supreme Court on June 18, claiming it has spent $33 million acquiring and developing the lands so far. The petition states construction was originally set to begin 10 years ago but was “temporarily put on hold” because of the Great Recession.

“Since then, the real estate market in or around Vancouver has made a dramatic recovery.”

Concord, which unsuccessfully appealed to the province’s Chief Inspector of Mines to have Parry’s mining permit revoked, claims it was unaware of that permit until it was notified of his plans in April 2018. It claims that five-year permit is “unnecessary and unreasonable” and that mining “will adversely impact Concord’s rights, privileges and interests, including Concord’s ability to obtain funding and/or investment for the lands.”

The company’s website says the Porteau Cove development is “coming soon” and that it will be “the ideal community for those that appreciate and play outdoors and want to be close to all downtown Vancouver has to offer.”

Concord didn’t make anyone available for an interview when contacted by Business in Vancouver. The company’s lawyer, Hein Poulus with Stikeman Elliott, did not return calls for comment.

“The project right now, we don’t have any current updates on it. We still do own the site, so it may be coming up in the future,” an unidentified sales employee told BIV.

Meanwhile, Parry and Bellaroc have applied to the Surface Rights Board to compel Concord to allow access to the lands, and the board has deferred issuing a decision until the company’s petition is heard in court. Parry said he understands the company’s position and is leaving it up to the Ministry of Energy, Mines and Petroleum Resources and the Surface Rights Board before he starts drilling. He insists the permit process was all above board, having met all the environmental standards and requirements to consult with First Nations.

“The Ministry of Mines, they feel strongly that we gave all the information,” he said. “Permits are not just handed over.”

Having worked in the region for so long, including on houses in the British Properties, Parry said he floated the idea of working with the company, including supplying granite extracted from the site to the project.

“They don’t even want to look at that kind of option,” Parry said. “They’re standing firm on their side, and we’ll just have to see what happens.”

Copyright © 2018 Western Investor

Owners of resort properties affected by speculation tax

Don Procter
REM

B.C.’s proposed speculation tax for owners of resort properties is well intended but if it goes ahead in its current framework it could hurt tourist-reliant communities and be punitive to long-term residents, says a B.C. resort developer/builder.

While the proposed tax aims to target foreign and out-of-province investors who do not pay income tax in B.C. – and it includes owners who leave homes vacant – it could unfairly affect some B.C. residents who have owned second homes for many years, says Randy Trapp, president and CEO of Luxury Resorts West, a B.C. resort developer/builder.

In its current state, the tax, which would be in place next year, will only apply to B.C. owners of second homes assessed at more than $400,000 in Metro Vancouver, The Capital Regional District (Victoria and surrounding communities), Kelowna and West Kelowna, Nanaimo and parts of the Fraser Valley, including Abbotsford and Chilliwack.

Trapp says he doesn’t disagree with what the government is trying to accomplish. A speculation tax makes sense in downtown Vancouver and Victoria markets, for example, where presales are driving up prices, creating an “artificially inflated market,” making homes unaffordable for many full-time residents, he says.

“But I think the broad sweeping areas of the applicability of this tax are somewhat misguided insofar as they will have a negative impact on (sales) in areas that are tourist driven and tourist reliant,” says Trapp.

Trapp’s resort developments in Parksville (Vancouver Island) and Radium Hot Springs in southeastern B.C. do not fall under the speculation tax rules, so they could draw prospective buyers away from Greater Victoria and Kelowna, which are subject to the tax.

But that could drive prices up, creating an affordability issue, he says.

“One of my philosophical disagreements with the government over the tax and how it affects our industry is, quite frankly, that our customers are not speculators,” he says, noting speculators hold property “for a very short time” and sell as prices rise to make a profit.

“Many of our customers have owned property in excess of 10 years…They (government) are trying to make a one-size-fits-all tax and I don’t think that is the best way to go about it.”

He says a number of communities under the speculation tax umbrella are tourist reliant. The tax could negatively impact their growth.

While Trapp couldn’t give specifics on the impact of the tax in those tourist communities – Kelowna, for example – because his company has no experience there, he commented on the importance of tourism to Parksville, where he has an ocean-side resort development.

Under the government’s original proposal, Parksville was subject to the speculation tax, but the business community and city took exception and the province backed down, he says.

If applied in Parksville, the speculation tax would have dire effects, he says, noting 40 per cent of the city’s economic activity is driven by tourism, representing about $130 million annually.

“Parksville has a high percentage of second homeowners who have come for generations. They buy groceries…they buy gas, pay property taxes and patronize all of the ancillary businesses and they do it at a much higher per capita rate than, say, a full-time resident.  To put in place a tax that suppresses or dissuades that sort of economic activity…I think is not a practical approach to what goes on in those communities.”

Trapp says he has heard from developers in tax-proposed areas that they are putting developments on hold until they see how the tax rules unfold.

Under the current proposal, non-B.C. residents would add 0.5 per cent of the tax assessed value of the property in 2019, he says. That means that on a property assessed at $650,000 the owner would pay an additional $3,250 in property tax. In 2020, the tax would jump to two per cent – an additional $13,000 tax.

Trapp is uncertain how the government will tax B.C. residents on second properties. “I haven’t seen any government communication that clearly spells that out.”

While a Royal LePage report forecasts that the speculation tax could result in a dip in prices or resort properties across the province by almost three per cent, that report doesn’t tell the whole story, Trapp says.

“These are highly populated regions, so they will have a disproportionate effect on the (home price) average in the province,” he says.  In resort areas that are tax-exempt “there is an opportunity for a market lift.”

But that market increase can also have a negative impact on affordability, he points out.

“What I hope the government does is if they don’t eliminate this tax proposal completely, is that they overhaul it in such a way that it truly does target speculators.”

The proposed tax legislation will be tabled in the fall legislature.

© 2017 REM Real Estate Magazine

Condominiums the choice for first time buyers

Steve Randall
REP

Condo apartments saw an average selling price gain of 5.4% year-over-year in the second quarter of 2018.

The rise took the average selling price to $561,338 while in the City of Toronto there was a 6.5% rise to $603,480 the Toronto Real Estate Board reported Tuesday.

“Condominium apartments have outperformed other housing types over the past year, in terms of price growth. It has been a seller’s market in many neighbourhoods for this home type, which is why we have continued to report average price growth more than twice the rate of inflation,” said TREB president Garry Bhaura.

Sales were 16.5% lower in Q2 2018 than a year earlier with 6,837 units sold through the board’s MLS system but there was also a 15.9% drop in new condo apartment listings.

TREB says this balance between the decline in sales and listings shows that the market conditions have remained similar over the year, supporting price growth.

“First time buyers continue to be a key driver of condominium apartment demand. The relative affordability of condos versus low-rise home types, especially with the onset of stricter mortgage qualification guidelines and generally higher borrowing costs, has also been a key factor underpinning tight condo market conditions and continued average price growth,” said Jason Mercer, TREB’s Director of Market Analysis.

Missing middle still not supplied The figures support TREB’s calls for government to aid the supply of homes for the ‘missing middle’ gap between low-rise low-density and high-rise high-density housing.

“For many people, condominiums are the only realistic housing option, even if they may prefer a different lifestyle. There is simply not enough supply of housing to meet the need for home types between detached homes and condominium apartments. This could help provide affordable options for home buyers and TREB looks forward to raising this issue during the upcoming municipal election campaign in our determination to find ways to get more of this type of housing into the market,” added Mr. Bhaura

Copyright © 2018 Key Media Pty Ltd

Lack of affordablilty caused by gap between wages and home prices

Ephraim Vecina
Canadian Real Estate Wealth

The median cost of a Vancouver home currently stands at $672,000 – but while certainly elevated, it is still lower than San Jose (15% lower) and San Francisco (26% lower), the most expensive markets in North America.

Andy Yan, director of Simon Fraser University’s City Program, argued in his latest study that what really drives Vancouver’s lack of affordability is the sheer gap between wages and home prices.

Vancouver’s median household income is $61,036 annually, less than other mid-range U.S. cities like Omaha, NE; Kansas City, MO; and even rural Lancaster, PA.

Considering that home prices in Vancouver have triples since 2005, it is unsurprising that households will find it daunting to close the affordability gap, Yan said.

 “You need one of two things: either Vancouver real estate prices need to halve to attain a certain level of affordability, or you need to double incomes,” Yan told Bloomberg.

Yan warned that because of this delicate situation, a major correction would be “potentially devastating” for the city’s housing market, especially since housing plays a major role in the local economy and real estate development is B.C.’s largest industry at the moment.

Home sales in the city fell to the lowest levels in 5 years last month, amid housing supply reaching a 3-year high.

Copyright © 2018 Key Media Pty Ltd

CREA says we are still at a five-year low

Neil Sharma
Canadian Real Estate Wealth

Home sales in the country rose 4% in June over May, and Toronto led the charge with a whopping 17% increase.

According to the Canadian Real Estate Association, Toronto has been forecasted for some time to bounce back, and while it’s too early to celebrate ameliorated fortunes, the seed is sown.

“The May to June increase is the first bit of evidence that it might be happening, but having said that, one month is not a trend,” said Shaun Cathcart, a senior economist at CREA. “These policy changes put a lot of buyers on the sidelines for the first six months, and things are starting to rebound. It’s a strong signal, but certainly not sustained at one month.”

Extrapolating market reactions to policy changes over the last few years, Cathcart says previous rebound timelines make things look promising.

However, June sales are still a five-year low.

“It depends on what months and stat you look at, but seasonally adjusted sales, we’re still at one of the lowest levels in five years,” said Cathcart. “Part of the increase from May to June just reflects how quiet the market was in May.”

According to the Altus Group Housing Trend report, first-time buyers’ absence from the housing market explains why the market has been languid all year. The report predicts an autumn rebound.

In particular, first-time buyers have not abandoned dreams of homeownership. Rather, they’ve deferred them while they save up for larger down payments, which is what an expensive market like Toronto’s demands.

“With all the policy changes we’ve had and additional stress testing, they have knocked many first-time buyers out of the market for a while, but part of what they’re doing is saving money. They’ll be back,” said Patricia Arsenault, vice president of research and consulting services at Altus Group.

“Particularly among younger renters; they’re inclined to buy homes. Because of their ability at the moment, they’re saving longer and tapping resources from parents to help them out, but they’ll be back in the short-term. There’s nothing out there that says they don’t want to own homes anymore.”

Arsenault added that housing sales will markedly improve by the end of summer.

“People are saving for down payments,” she said. “Savings rates are up in Canada and that money is being used for better down payments.”

Copyright © 2018 Key Media Pty Ltd

More than 580 buyers also trying to sell their contract assignments

Frank O’Brien
Business in Vancouver

Pre-sales of new condominiums across Greater Vancouver and the Fraser Valley dropped from 91% of offerings in January to 50% as of June as the action shifts from “hyperactive growth to a more balanced, more normal market,” according to Suzana Goncalves, chief advisory office and partner of MLA Canada.

In its 2018 Mid-Year Market Review, released July 18, MLA, a Vancouver-based real estate market research firm, notes that pre-sale activity of new condo projects of from 50% to 65% is, historically, considered normal within the first six to eight months of a project launch.

In the first quarter of 2018, 79% of new condos pre-sold sold but this dropped to 67% in the second quarter, which MLA described as still  “strong activity.” In the entire first half, 74% of the 7,753 new condos offered pre-sold. This is down from 87% in the same period a year earlier, according to Urban Analytics.

Goncalves suggested that the cooling sales could reflect government policies introduced in 2018, such as the increase in the foreign-buyer tax, stricter lending regulations, most notably the expanded mortgage stress test, combined with rapid price appreciation.

“The pre-sale market is anticipated to see fewer projects sell out upon release, but rather experience a steady and longer sales period,” the MLA report stated.

The most active pre-sales markets this year so far are in West Coquitlam and Burnaby North, with pre-sales higher than 90%. The lowest pre-sales are in projects in Richmond, at 39%, and Port Coquitlam, at 19%.

The City of Vancouver is seeing pre-sales of 61% in east Vancouver projects and 54% for new condo developments on the west side of the city, according to MLA research.

The anticipation of slower sales and potentially lower prices could be encouraging some pre-sale buyers to sell their sales contracts, which are known as assignments. A BIV survey July 18 of listing services Craigslist, Kijiji and Vancouvernewcondos.ca found 587 pre-sales condos being offered from West Vancouver and Squamish to Surrey and Langley by both real estate agents and private owners.

The February 20 increase in the B.C. foreign-home buyer tax from 15% to 20% could also be a factor in slower pre-sales. Since 2016, the share of new condominiums sold to foreign buyers reached 16% across Metro Vancouver and accounts for about one-quarter of buyers in Richmond and Coquitlam, according to Canada Mortgage and Housing Corp.

MLA is forecasting 67 new condo project launches representing more than 7,700 homes during the second half of 2018 across Greater Vancouver and the Fraser Valley. 

Copyright © Business in Vancouver.

Rezoning application has been submitted for a property located next to the vacant North Delta Inn site

Sandor Gyarmati
Western Investor

Another high-density residential development is being pitched for the Scott Road corridor, but not a skyscraper.

A rezoning application has been submitted for a property at 6950 Nicholson Road, located next to the vacant North Delta Inn site which has seen previous high-rise applications fail.

The application for the Nicholson road property near 70th Avenue, currently occupied by commercial buildings, proposes two apartment buildings that would be six storeys in height and comprise 181 units.

The site was the subject of a previous contentious development application that also included the North Delta Inn property.

One of the options pitched at the time called for one or more high-rise buildings up to 29 storeys in height that would include 80,000 square feet of ground-oriented commercial space on the lower two levels and a maximum of 680 multi-family units above. A majority of area residents were opposed, citing concerns about height, traffic, impact on adjacent residential properties and the scale of the development not fitting within the neighbourhood.

That proposal died on the vine and there’s currently no proposal on the books for the North Delta Inn parcel.

Council has approved changes to the North Delta Area plan encouraging more high density. The new plan focuses on the concentration of growth strategically focused on four key areas: the Scott Road Corridor, the Nordel Social Heart, 84th Avenue and 72nd Avenue.

The Delta Rise high-rise further down Scott Road has since been constructed and two more high-rise applications have been submitted for the corridor.

Meanwhile, more higher-density developments are underway elsewhere in the community, including a 60-unit townhouse project in the 11100 block of 72nd Avenue, while further up 72nd Avenue a 40-unit townhouse development, located at the corner of 116th Street, is about to be built.

Meanwhile, two condo buildings and two townhouse buildings (a total of 110 apartments and 12 townhomes) will be built in the 1100 block of 84th Avenue.

As far as South Delta townhome or condo projects proposed or being built, perhaps the most notable to watch for will be the Century Group’s submission for a master plan for the major redevelopment of the Tsawwassen Town Centre, something that could possibly include a high-rise or two but not to the height of Delta Rise. The company is still working on the master plan.

Copyright © 2018 Western Investor