First year of legal short-term rentals saw 660 violation tickets, 276 legal orders and 117 suspensions

Glen Korstrom
Western Investor

The City of Vancouver is touting its enforcement for helping its year-old short-term rental program run effectively.

While the city believes that 73 per cent, or 4,266, of the 5,866 active short-term rental hosts are abiding by the rules, its staff has flagged 27 per cent of all short-term rental addresses for audits to confirm compliance with city regulations that went into effect on September 1, 2018.

Those new rules made it legal for residents to rent their primary residences for stays that were less than 30 days — something that was technically illegal before but was a law that was rampantly flouted with no enforcement.

Renting non-primary residences remains illegal, and Business in Vancouver has documented in past stories how there are workarounds that enabled hosts to skirt the city’s licensing requirements.

The intent of the city’s new rules were to protect rental stock and eliminate unfair competition for bed-and-breakfast businesses.

There were some irregularities with the city’s statistics.

It was not immediately clear, for example, how the city could have listings at 4,366 addresses that staff believe to be in compliance if the city has only issued 4,025 short-term business licences. That would logically mean that 341 hosts have more than one primary residence, which would not be allowed.

Regardless, city data released September 5 showed that city staff has issued:

• 642 warning letters
• 660 violation tickets
• 276 legal orders
• 150 voluntary cancellations
• 117 suspensions
• 116 prosecution referrals.

Three people whose licences were suspended unsuccessfully appealed those suspensions.

“The audit program has also resulted in a tenfold increase in licence suspensions and voluntary licence cancellations since the spring,” the city said in a news release.

“Short-term rental licenses are suspended as result of operators not meeting principal-residence requirements, failing to have strata or landlord permission to operate, operating illegal, unsafe or nuisance dwellings or failing to provide the requested documentation.”

The city said that it continues to escalate legal action against commercial operators who are violating regulations.

In August, a commercial operator who had a combined 35 short-term rental listings at two properties, and who was previously fined $20,000 in provincial court, was fined two additional charges of $10,000 by the courts for unauthorized short-term rental activity at their second property. Total fines issued against this operator are $40,000.  

Two other commercial operators have been found guilty in B.C. Provincial Court for operating and marketing without a business licence.

“Since day one, the goals of our short-term rental regulations have been to protect long term rental housing, ensure public safety and bring operators into compliance with our bylaws,” said the city’s chief licence inspector, Kathryn Holm.

“This is a dynamic market with operators and listings continually shifting. Our approach over the last year, and in particular the adaptations we’ve made in the last five months, reinforce that our efforts are working and will continue to evolve as we go forward.”

Holm and her team plan to bring a review of the short-term rentals program to council this fall.

Copyright © Western Investor

Funds will aid development of $311 million in port expansion projects

Jeremy Hainsworth
Western Investor

Continued development of the Port of Prince Rupert received a financial injection from Ottawa September 5 with the announcement of $153.75 million in funding for three projects.

“We see it as indicative of the growing role that the Port of Prince Rupert plays in adding value to Canadian supply chains and growing Canada’s trade with the world,” Prince Rupert Port Authority president Shaun Stevenson said. “These investments will enable the development of gateway infrastructure that will support ongoing growth in capacity and resiliency of the gateway.”

The port’s activity is expected to grow to over 50 million tonnes of trade annually within the next decade.

“These projects are a springboard to unlocking future private sector investment in the new facilities and operations required to meet that growing demand,” the port said in a statement.

In partnership with CN (TSX:CNR), the port received $60.6 million for the $122 million Zanardi Bridge and Causeway project designed to reduce port operational conflicts and increase rail capacity with a view to accommodating future growth in import and export trade for current and future terminals. 

Key project components include construction of a new double-track bridge across the Zanardi Rapids, rehabilitation of the existing single track Zanardi Bridge and expansion of the causeway between the Zanardi Bridge and Ridley Island.

The port itself received $49.85 million toward rail infrastructure required to service the  $100 million Ridley Island Export Logistics Platform project focused on expanding of the existing road, rail and utility corridor for greater train access.

The rail infrastructure is a precursor to a large-scale bulk transload and breakbulk transload facilities, and an integrated off-dock container yard.

The port hopes the corridor expansion will attract private-sector investment in export transloading and warehouse capacity at the port. A full build-out of logistics capability will be able to handle a significant increase in volumes, including dry bulk, forest products and other commodities.

The Metlakatla Development Corp., the economic development arm of the Metlakatla First Nation, received $43.3 million toward the $89 million Metlakatla Import Logistics Park project, a 25-hectare site development on South Kaien Island to enable transload and warehouse operations to provide increased flexibility and value-added capabilities for import supply chains.

“This project will benefit all who live in Coast Tsimshian territory by creating new jobs related to both the construction and long-term operations of the facility,” said corporation CEO Harold Leighton.

The funds are drawn from the National Trade Corridors Fund.

Prince Rupert’s cargo capacity generally has continued to grow. It jumped 12 per cent, four times Vancouver’s three per cent increase, to 1,036,009 20-foot equivalent units last year from 926,539 in 2017.

All other Prince Rupert terminals combined realized a 10% increase, with 26.67 million metric tonnes (MMT) moved compared with 24.17 MMT in 2017.

Prince Rupert Grain Ltd., which handles barley, canola, oats, soybeans and wheat, saw a 6% cargo decline from 5.77 MMT in 2017 to 5.44 MMT in 2018. Coke and coal traffic jumped 21 per cent to 9.12 MMT from 7.56.

Prince Rupert plans to increase annual TEU throughput capacity to 1.8 million by 2022 from 1.3 million. The port moved past the one-million-container-per-year mark December 18.

Prince Rupert’s potential terminal traffic received a boost March 27 when the world’s 11th-largest container carrier, ZIM Integrated Shipping Services, announced it had partnered with the 2M Alliance vessel-sharing agreement and added Prince Rupert to its North American trade loop.

Copyright © Western Investor

Altus Group findings for Q2 2019 shows a plunge in real estate investment

Ephraim Vecina
REP

On the heels of steady economic recovery, Alberta is grappling with a considerable drop-off in its real estate investment volumes, according to latest Altus Group data covering Q2 2019.

In Calgary, total investment volume for the first half of 2019 was $1.2 billion. Only $426 million came from the previous quarter, translating to a dramatic 56% plunge from the same period in 2018.

“This was a reflection of both lower sales volume and deal count, with 99 transactions being the lowest quarterly total seen since Q2 of 2016,” Altus explained.

However, “while the second quarter results showed a steep decline in sales volume from the same quarter last year, it’s also noted that the investment totals for the market were only down by 26% year-to-date compared to 2018,” Altus Group data solutions manager Ben Tatterton added.

“It appears that the market continues to remain in a holding pattern as we move into the second half of the year.”

The apartment sector saw 54% year-over-year growth, up to $84 million in transactions. This segment, as well as the industrial market, each accounted for 20% of Calgary’s Q2 total investment volume.

“For the first half of 2019, the apartment sector was up by 150% compared to the first half of 2018. The top transaction of the quarter was Cedarbrae Manor, which sold for $18.2 million to Mainstreet Equity Corp.,” Altus reported.

Meanwhile, the residential and ICI land markets both registered 16% of the second-quarter performance. The office sector represented only 10%, just a bit higher than the hotel sector.

Copyright © 2019 Key Media Pty Ltd

Metro Vancouver sales return to more typical levels

Steve Randall
Canadian Real Estate Wealth

Things are looking up for home sales in BC with a return to more average performance … but not until next year.

The latest forecast from the British Columbia Real Estate Association calls for a 5% decline in MLS sales for 2019 with around 75,000 units sold compared to 78,505 in 2018.

But for 2020, the association is forecasting an 11% rebound to take sales to near the 10-year average for MLS residential sales (85,800).

“BC markets are showing signs of recovery after nearly a year and a half of policy-induced declines,” said Brendon Ogmundson, BCREA Deputy Chief Economist. “We expect that recovery to continue into next year, with home sales normalizing around long-term averages.”

Resale inventory has reduced this year due to rising sales and active listings are well below the 2012 peak. At a provincial level, this means balanced market conditions with prices not seeing much upward pressure.

BCREA expects a 2.4% decrease in the MLS average price in 2019, rising 3% in 2020 to $718,000.

Copyright © 2019 Key Media Pty Ltd

BC Homes Sales Set to Normalize in 2020

BCREA

The British Columbia Real Estate Association (BCREA) released its 2019 Third Quarter Housing Forecast Update today.

Multiple Listing Service® (MLS®) residential sales in the province are forecast to decline 5 per cent to about 75,000 units this year, after recording 78,505 residential sales in 2018. MLS® residential sales are forecast to increase 11 per cent to 82,700 units in 2020, just below the 10-year average for MLS® residential sales of 85,800 units.

“BC markets are showing signs of recovery after nearly a year and a half of policy-induced declines,” said Brendon Ogmundson, BCREA Deputy Chief Economist. “We expect that recovery to continue into next year, with home sales normalizing around long-term averages.”

A recovery in home sales has slowed the accumulation of resale inventory, with active listings still well short of the previous peak in 2012. That leaves market conditions at the provincial level essentially balanced with little upward pressure on prices. We anticipate that the MLS® average price will decline 2.4 per cent in 2019 before rising modestly by 3 per cent to $718,000 in 2020.

© BCREA 2019

Metro Vancouver home sales up this summer

Steve Randall
REP

Home sales in Metro Vancouver increased in double digits year-over-year in August.

Total sales of 2,231 reported by the Real Estate Board of Greater Vancouver was 12.7% below the July total but was 15.7% higher than in August 2018. Sales were 9.2% below the 10-year average for August.

“Home sales returned to more historically normal levels in July and August compared to what we saw in the first six months of the year,” said REBGV President Ashley Smith.

There was a drop in new MLS listings of 3.5% month-over-month and 18.8% year-over-year (3,747) taking the total inventory to 13,396, almost 6% lower than in July but up 13.3% from August 2018.

“With more demand from home buyers, the supply of homes listed for sale isn’t accumulating like earlier in the year. These changes are creating more balanced market conditions,” Smith said. 

The sales-to-active-listings ratio was 16.7%.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver in August was $993,300, down 8.3% year-over-year and down 0.2% from to July.

Stats by property type

Sales of detached homes in August 2019 reached 706, a 24.5% increase from the 567 detached sales recorded in August 2018. The benchmark price for detached homes is $1,406,700, a 9.8% decrease from August 2018 and a 0.7% decrease compared to July 2019.

Sales of apartment homes reached 1,116 in August 2019, an 8.9% increase compared to the 1,025 sales in August 2018. The benchmark price of an apartment property is $771,000, a 7.4% decrease from August 2018 and a 0.1% increase compared to July 2019.

Attached home sales in August 2019 totalled 409, a 21.4% increase compared to the 337 sales in August 2018. The benchmark price of an attached unit is $654,000, a 7.8% decrease from August 2018, a 0.2% increase compared to July 2019.

Copyright © 2019 Key Media Pty Ltd

TREB releases latest home sales data

Mortgage Broker News

The Toronto Real Estate Board says home sales in the Greater Toronto Area in August were up 13.4 per cent compared with a year ago.

The board say there were 7,711 home sales through its MLS system in August, up from 6,797 sales reported in August 2018.

On a month-over-month basis, seasonally adjusted sales were up 0.8 per cent.

The increase in sales came as the MLS home price index composite benchmark for August rose 4.9 per cent on a year-over-year basis.

The average selling price was $792,611 in August, up 3.6 per cent compared with a year ago.

The board noted that market conditions were tighter in August compared with a year ago as overall active listings at the end of the month were down by more than 11 per cent compared with August 2018. 

The Canadian Press

Winston Terraces homes feature huge roof decks that will make for stylish outdoor living

Kathleen Freimond
The Province

As Langley continues to grow – according to Statistics Canada, the municipality’s population has increased by 12.6 per cent since 2011 – developers are responding to the demand for housing with a range of new multi-family homes. One of these projects is Winston Terraces, Quadstar Development’s townhome project at 19624 56th Avenue.

Construction has started on the first phase of the 26-townhome development. At just under an acre, the site will accommodate four buildings – two blocks, each with six townhomes, and two blocks, each with seven townhomes – says Malinder Brar, president of Quadstar, a collaboration of local developers, including IMG Group. Collectively, these developers have completed several single-family homes and custom homes in the Lower Mainland and Greater Vancouver.

“The foundations are poured for block one and three and we expect those homes to be ready [for occupation] in about eight months,” says Brar, noting the whole project is scheduled to be complete in 14 or 15 months.

Winston Terraces is a short drive to the Willowbrook Shopping Centre and Brydon Park, and is close to a variety of community centres, schools and restaurants, Brar says.

Director of sales Adil Dinani says the four blocks of townhomes with their brick and Hardie board exteriors will not over-crowd the site, making for a development with a comfortable density.

Story continues below

The two-bedroom homes sized between 1,394 and 1,693 square feet, three-bedroom homes between 1,478 and 1,822 square feet, and four bedrooms at 1,812 square feet appeal to a range of age groups, including first-time buyers, young families and downsizers who want to stay in Langley, but enjoy a smaller home, Dinani says.

In addition to the indoor area, all the homes include spacious rooftop decks.

“We joke that backyards are over-rated when you have a deck like those at Winston Terraces,” says Dinani, referring to the rooftop terraces ranging from 471 to 531 square feet.

The decks, finished with natural cedar planking, all have gas and water hookups that will enable homebuyers to create the outdoor space that best suits them. There’s place for barbecues, an open-air lounge, dining table, a container garden for green thumbs and even a hot tub, Dinani says.

“These terraces are like outdoor rooms. People are intrigued by the size of these spaces – consider a townhome of 1,384 square feet plus a large deck – young buyers and downsizers alike are interested in that amount of outdoor space,” he says.

There are multiple access points to Winston Terraces, including from a back lane, and internal roadways lead to the townhomes. The three-storey townhomes include their own garage (tandem or double side-by-side) on the ground level.

The kitchen is the star attraction on the main level, which also has a balcony, perfect for relaxing and everyday barbecues. The dining room has space for a table and chairs for six or eight people and benefits from over-sized windows that let in plenty of light.

Homebuyers can choose from two colour palettes, light and dark. The colour options are most evident in the kitchen and bathrooms: in the light scheme, the maple cabinetry is white-painted shaker while the flooring (wide-plank laminate) is the darker of two selections, designed to contrast against the light cabinets. In the dark option, grey flat-panel doors give the kitchen its character, along with lighter floors.

“The kitchen is the heart of the home. As you enter the main floor, the kitchen welcomes you,” Dinani says.

The cabinets, with soft close mechanisms on the doors and drawers, are full ceiling height (nine feet).

“Downsizers, particularly, are starved for storage space,” Dinani notes.

Both schemes feature white quartz countertops, under cabinet lighting and marble-look porcelain tile backsplashes.

The kitchen islands range from seven to eight feet, depending on the floor plan, with a generous overhang to accommodate several bar stools. The island is also home to the undermount sink with a stylish black matte faucet and the dishwasher. The major appliances are by KitchenAid, including a full gas range and a refrigerator with french doors and bottom-mount freezer.

In the bathrooms, the countertops are the same as the kitchens and the vanities follow the colour palette choice and feature trendy matte black faucets. In the ensuite bathrooms, frameless glass shower enclosures and marble-look porcelain floor and wall tiles contribute to a fresh and stylish ambience. The single-sink vanities are complemented by a ceiling-height mirror, and the space is lit with LED pot lights, Dinani says.

These modern homes also offer a connected lifestyle, with ‘smart home’ technology, including Nest thermostats and USB outlets throughout, enabling homeowners to take advantage of technology, energy savings and convenience.

The sales centre for Winston Terraces features a board room program at the Royal LePage West office at 9965 152nd Street in Surrey.

Winston Terraces

Project address: 19624 56 Avenue, Langley

Developer: Malinder Brar, president of Quadstar Development

Architect: F. Adab Architects

Project size: 26 townhomes

Bedrooms: two, three and four bedrooms

Unit size: 1,394 – 1,822 square feet

Price: From $550,900

Sales centre: Board room program at Royal LePage West brokerage office: 9965 152nd Sreet, Surrey

Sales centre hours: By appointment

Phone: 604-771-3495

Website: http://www.winstonterraces.com

© 2019 Postmedia Network Inc.

Housing rental hike pegged at maximum of 2.6% for 2020 in the province

Tiffany Crawford
The Province

If you rent your home in B.C. you could be paying as much as 2.6 per cent more next year.

That’s the most that landlords are allowed to hike rent in 2020 as set by the B.C. government Wednesday. The province says the hike is tied to the annual rate of inflation.

Minister of Municipal Affairs and Housing Selina Robinson said the government has again this year removed the additional two per cent above inflation rate that had previously been allowed under the former government.

She said, in a news release, that under the old formula, renters would have faced a rent hike of more than nine per cent over 2019 and 2020.

“Because of our changes and the removal of the fixed-term loophole, people will no longer face the unreasonable rent hikes that were allowed for years,” she said.

Last year, B.C. Premier John Horgan announced the rate hike would be limited to 2.5 per cent, based solely on the rate of inflation, in a bid to tackle the affordability crisis, particularly in heated markets such as Vancouver.

Horgan said the change strikes a balance between providing relief for tenants and encouraging landlords to maintain their properties by requiring them to apply for higher increases to cover improvements.

The changes follow early recommendations by a task force appointed by Horgan, and are in line with policies in Ontario and Manitoba.

The executive director of the Tenant Resource and Advisory Centre, Andrew Nakamoto, said Wednesday that although more can still be done to improve rental affordability in B.C., reducing rent increases by two per cent is a step in the right direction.

A rent increase of 2.6 per cent rather than 4.6 per cent will lead to savings for B.C. tenants, he said, in a statement Wednesday.

© 2019 Postmedia Network Inc.