Commercial Real Estate has remained stable in Vancouver

Steve Randall
Canadian Real Estate Wealth

Investment in commercial real estate in Vancouver has remained stable during 2019 but far weaker than a year ago.

Figures from the Altus Group show that, throughout the first three quarters of 2019, investment volumes have been between $1.7 billion and $1.8 billion each quarter, but this is a long way from the same period of 2018 when the quarterly average was $3.2 billion.

Year-to-date, overall transaction volume declined by 49% to $5.2 billion with total deal count dropping by 30%.

The residential land market was down to around a third of 2018’s volume at $1.4 billion, roughly the quarterly average of last year.

There was also a decline for the ICI land market, although the drop was a more modest 27% year-over-year in investment volumes to $1.3 billion through the first three quarters of 2019.

Offices lead gains Through the first three quarters of 2019, the office and industrial markets represent the only assets to record investment volume increases compared to 2018, 8% and 2% respectively.

Year-to-date activity in the apartment market weakened with volume and transactions dropping by 45% and 42%, respectively, compared to the same period last year.

“Overall the Vancouver market appears to be stagnant and stuck at levels not seen since 2015, however, a closer look indicates the prevalence of a wide range of purchasers ready to acquire quality improved assets, particularly in the office and industrial markets. Vancouver continues to suffer from supply issues in this regard and we expect new construction projects to only partly satisfy the demand,” noted Paul Richter, Director, Data Solutions at Altus Group.

Copyright © 2019 Key Media Pty Ltd

Roof decks a standout feature at 3535 Princeton

Simon Briault
The Vancouver Sun

3535 Princeton is a project from Nordel Developments in Coquitlam. [PNG Merlin Archive] PNG

Nordel Developments is building a collection of high-end townhomes on Coquitlam’s Burke Mountain. Rod Byrnell and wife Debra bought one of the homes in the development — it’s called 3535 Princeton — and when he was asked what appealed to him about the project, said: “Probably everything.”

But top of the list for Byrnell, along with presumably many others, is the private rooftop patio, which every plan will have.

“These homes are unique in this area,” said Michelle DesRosiers, vice-president of projects at Fifth Avenue Real Estate Marketing Ltd., which is marketing the project. “They’re not your typical three-storey townhomes. They have beautiful, 180-degree views of the Lower Mainland. You can see as far as Surrey and Delta and towards the Port Mann Bridge.”

Byrnell, who describes himself and his wife as downsizers, said that the home they’ve bought will have views from every level. He was also appreciative of the service he got from the developers during the buying process.

“We were a little bit nervous only being able to see plans and renderings,” Byrnell said. “But the developer was incredible going through it with us and answering our questions. When we decided that we were going to buy, they were very easy to work with. One example was a mirror that my wife wasn’t too excited about. They overheard us talking about it and volunteered to change it without us even asking. You don’t often see that kind of thing in condo or townhouse developments. It’s usually a case of ‘this is the way it is, take it or leave it.’”

Byrnell is set to take possession of his new home at 3535 Princeton early next year. Once complete, the development will have a total of 27 three- and four-bedroom homes ranging from 1,314 to 2,405 square feet. Prices start at $754,900.

“Nordel Developments is part of Nordel Group, a company that has been building homes for more than three decades,” said DesRosiers. “They pride themselves on building quality homes with long-lasting value. They’ve developed mostly in the Fraser Valley in places like Surrey, Langley and Maple Ridge. But they’ve also been active in Alberta and on Vancouver Island.”

A highlight of the homes at 3535 Princeton is, of course, the private patio (weight-loaded to allow for hot tubs, by the way), but the developer has also not held back on the interior finishes.

 “They’ve really tried to build these homes to be anything but cookie cutter,” said DesRosiers. “So, they included things like forced-air heating, air conditioning, engineered hardwood, feature walls, electric fireplaces, built-in cabinetry for your entertainment system and natural gas barbecue hookups. These are the type of things you would normally only find in a custom, single-family home and they’re included in the price.”

Kitchens will have grey Shaker cabinetry with soft-close hardware, large pot drawers and pantry space. Wrapped in large-scale tile, kitchen islands are complemented by soft accent lighting and there are quartz countertops, large-scale tile backsplashes, and undermount sinks. The appliance packages are by Fisher & Paykel and include freestanding gas ranges with canopy hood fans, counter-depth french door refrigerators with water and ice, and double-draw dishwashers.

Most ensuite bathrooms will have double vanities. Other bathroom features include chrome faucets with black accents, five-foot walk-in showers with smoked, frameless glass and floor-to-ceiling textured tile. There are pedestal soaker tubs surrounded by floor-to-ceiling textured tile in larger homes and dual-flush, single-piece toilets.

“Most of our buyers are from the immediate area, but we have also seen some coming in from North Vancouver,” DesRosiers said. “I think they probably identify with the natural setting here – you’ve got Burke Mountain with trails and creeks nearby and we back right on to protected green space.”

“It’s a very North Shore type of setting,” DesRosiers added. “It’s a step away from the urban centre, but the nice thing is that they are going to be building Burke Mountain Village, which will give residents opportunities to do some everyday shopping within a five-minute walk of our site.”

According to the City of Coquitlam’s website, the village is expected to include up to 120,000 square feet of commercial space, a major recreation complex with community centre, public plaza, integrated multi-use trail network, and a public park. All of this is music to the ears of Rod and Debra Byrnell, who will take possession of their new home close by early next year.

“Our children and grandchildren are in that area so that was important to us,” Byrnell said. “The other thing is that we both grew up in Coquitlam and we had to move out to Maple Ridge many years ago because we couldn’t get into the market in that area. Now we’re moving back and it’s kind of like coming home.”

3535 Princeton

Project location: 3535 Princeton Avenue, Coquitlam

Project size: 27 three- and four-bedroom townhomes, 1,314 — 2,405 square feet

Pricing: from $754,900

Developer: Nordel Developments

Architect: Focus Architecture

Interior designer: Giraffe Design

Sales centre: Home 2 — 3535 Princeton Avenue, Coquitlam

Sales centre hours: noon — 5 p.m., Sat — Wed

Sales phone: 604-468-8298

Website: http://www.3535princeton.com

© 2019 Postmedia Network Inc.

Elaborate downtown park finally set to be constructed

Susan Lazaruk
The Province

Construction is scheduled to begin next month on an elaborate Downtown Vancouver park that includes a public plaza, cafe, raised walkways and a price tag that ballooned to $14 million from its original estimate of $8 million.

The Vancouver park board, which oversaw the design of the park that’s being built on a parking lot at Smithe and Richards streets, is expected to vote on the awarding of the contract to the construction company at its Monday meeting, the final step before construction can begin.

The new park will be divided into three terraces and will include a public plaza with a water feature, small cafe, playground, a community table for programs, seating terraces, plants and overhead “sky-frames” to provide lighting and on which to install public art.

In 2011, it was estimated to cost $8 million, an amount that was to be covered by the community amenity contributions (CACs) paid by the developer of the Telus Gardens condo complex during the rezoning process. CACs are routinely agreed to by developers during rezoning, usually in exchange for increased density.

The Telus Gardens’ developer in 2011 agreed to pay $8 million, which was expected to cover the purchase of the land, demolition of the existing parking lot, park development and construction costs, according to the park board staff report recommending the granting of the tendered contract to Smith Bros. and Wilson.

The actual $13.8-million price tag for the park nine years later is 73-per-cent higher than the $8-million estimate. And the park’s estimated yearly maintenance budget is $500,000.

The park board approved the concept design for the park in 2016, after public consultation, and construction was delayed as staff worked on the design in 2017 and 2018.

The staff report noted Vancouver city council in its second-quarter capital budget adjustments approved an increase for the project “to reflect the complexity of the park design and higher construction costs.”

Because construction exceeds $2 million, the granting of the construction contract requires approval by city council, and councillors will vote on it at the regular council meeting Tuesday.

“I would consider that (73-per-cent increase in cost) higher than usual,” said Vancouver Coun. Sarah Kirby-Yung, former parks board chairwoman, who served on the board during the park’s design stage. But she said there were delays in permitting for the project and noted the “design itself is quite complex,” and the increased cost could be “because of the nature of the design.”

She said she will also have questions for the parks board about where the extra funding came from, saying it may have come from the city’s common pool of CACs.

Kirby-Yung said she’s likely to support the final approval of the project because “I do support delivery of new parks” in Vancouver.

The parks board said the park is expected to be “intensely used” by the 30,000 individuals who live and work within a five-minute walk of the site.

Construction is to begin in early 2020 and it’s expected to open in early 2021.

Parks staff called it the “most significant downtown urban park in Vancouver in over 10 years” and said it will provide much-needed park space for the growing Downtown South neighbourhood, and relieve pressure on other downtown parks, such as Emery Barnes, Nelson and Yaletown.

© 2019 Postmedia Network Inc.

New confidence act to strengthen homebuyers’ protection

Steve Randall
REP

Plans to shake up the new home warranty program in Ontario have been welcomed by the provincial real estate association.

Legislation has been put forward by Ontario government Minister of Government and Consumer Services Lisa Thompson that would overhaul the Ontario new home warranty and protection program, reforming Tarion Warranty Corporation, while reducing the role of builders to make it more focused on consumers.

The proposal comes a week after the second reading of the Trust in Real Estate Services Act.

If passed, the proposed Rebuilding Consumer Confidence Act would further strengthen homebuyers’ protection.

“When consumers get the keys to their new home, they should feel confident their home has been built properly, and that any defects will be taken care of in a timely manner,” said Thompson. “Home warranties and protections need to keep home owners safe, and ensure homes are built well.” 

Tim Hudak, CEO of the Ontario Real Estate Association has welcomed the proposed legislation.

“OREA is pleased that the Ford Government is acting upon the Ontario Realtors’ recommendation to establish a builder code of conduct,” he said. “A code of conduct that applies to all employees of a home builder, in particular salespeople and establishes a higher standard for honesty, integrity and professionalism to govern all interactions with homebuyers. Ontario’s 80,000 Realtors have followed a similar Code of Ethics since 2002.”

Stronger powers Under the proposals, Tarion Warranty Corporation as the single administrator of new home warranties, would be given greater powers to scrutinize builder applications and make inspections before a homebuyer moves in.

“Our government recognizes that Tarion has not done nearly enough to fulfill its responsibilities to protect buyers of new homes,” said Thompson. “It is why we are rebuilding the program from the ground up, focusing on consumer protections, transparency and access to information, and governance.”

Copyright © 2019 Key Media Pty Ltd

California-based research firm new report

REM

iBuying is the No. 1 real estate trend for 2020, says a new report by California-based research firm T3 Sixty.

“The way consumers buy and sell homes is radically changing, and 2020 will be the year that more will recognize these fundamental shifts happening within real estate,” says Stefan Swanepoel, chairman and CEO of T3 Sixty and the report’s editor-in-chief. “The industry is changing more and faster now than it has in decades, something that becomes abundantly clear when reading this study.”

The Swanepoel Trends Report says that “after fundamentally altering other industries, venture capital and technology are now rocking the residential real estate brokerage industry. By fueling new models, consolidation and ways of delivering services, these powerful forces are changing the way consumers buy and sell real estate forever,” it says.

With iBuying, “a controversial and powerful new real estate model used by Zillow, Redfin, Opendoor and a growing list of other companies every day, consumers can sell or buy a new home in as soon as three days with all cash and choose their closing date. The model brings transparency, simplicity and certainty to a transaction that historically has been lengthy, confusing and complicated,” says the report.

It says the trend has evolved from a seller-focused model to one that serves buyers and, increasingly, synchronous sellers – those sellers who are also buying a home. New companies are offering an increasing number of twists on the model, it says.

The study looks at three companies – Zillow Group, Compass and Keller Williams Realty – that “have made huge bets on the future by essentially pushing all of their chips to the centre of the table with aggressive, company-changing moves.”

© 2019 REM Real Estate Magazine

Latimer Village condos the hub of Langley community

Simon Briault
The Province

In 2013, Vesta Properties approached homeowners in the Carvolth neighbourhood of Langley with an offer to purchase and then develop their lots. Fast forward six years and a landmark master-planned community is beginning to take shape. Set on 74 acres and comprising 31 lots in total, Latimer Heights will provide the area with just under 2,000 new homes.

Latimer Village is the newest section of Latimer Heights to go on sale and represents the urban hub of the entire community with 487 condos. Set for completion in the late summer of 2021, it will include restaurants, retail outlets, amenities and an urban village space.

Community building on this scale offers potential homebuyers all kinds of options. For Fisher Lietz, it’s the opportunity to own a home for the first time.

“It was very affordable,” Lietz said. “I’m a pretty young guy and don’t have a crazy amount of money to work with so it was really nice to be able to get into a new development like this.”

Tara Desmond, sales manager at Vesta Properties, said Latimer Heights will allow different generations to live in the same location based on their different needs.

 “We have young families who have bought one of the townhomes and their parents are going to be moving into one of the condos,” said Desmond. “It’s a very walkable community that’s completely sustainable on its own – people can very much age in place if they want to and have the amenities and the facilities they need right on their doorstep.”

Homes at Latimer Village will have nine-foot-high ceilings, oversized windows and laminate hardwood-style floors. There are three colour schemes to choose from – grey, caramel and dark – and the kitchens come with Samsung appliance packages, gas ranges and french door fridge freezers with ice and water dispensers.

Bathrooms have dual sinks, frameless glass shower doors, large-format tiles on shower surrounds and floors, and quartz countertops.

“There’s a ton of variation here,” Desmond said. “A lot of the time with condo buildings you’ll see the same plans repeated on every floor. That’s definitely not the case with the architecture and the design at Latimer Village. There are at least 40 different floor plans – it’s really unique.”

At Latimer Village, Desmond said there has been lots of interest from residents of Burnaby and Coquitlam who are attracted by the value on offer, as well as people who already live in the area. Lietz is one of them and he jumped at the chance to own a condo in what is set to become a highly desirable new area of the Lower Mainland.

“I live in Brookswood, south of downtown Langley,” he said. “I like it where I am but I’m really looking forward to going to the new place

Latimer Village at Latimer Heights

Where: 8242 200 Street, Langley

What: The first two buildings of Latimer Village, comprising approximately 100 homes, are on sale now, with new phases to be released shortly

Where: 8242 200 Street, Langley

Residence size and prices: Homes range from 507 to 1,331 square feet. Available homes have one to three bedrooms and are priced from the upper $300,000 range

Developer: Vesta Properties

Sales centre: 8242 200 Street, Langley Township

Hours: noon to 5 p.m., Sat — Thurs

Telephone: 604-371-1669

© 2019 Postmedia Network Inc.

Five more Metro Vancouver homeowners hosed in a falling market

David Carrigg
The Province

A recent report from Central 1 Credit Union suggests a rebound in Metro Vancouver’s housing market is coming. However, at the moment there are property owners losing hundreds-of-thousands of dollars on their investments.

Released last month, Central 1 foretold of a turnaround in B.C.’s housing market — with both sales and prices jumping by 2021 — as long as interest rates stay low.

However, for Twitter real estate watcher Mortimer, his online hobby of tracking losers in the local market has never been more active.

Here’s a list of the five latest property owners to lose big in the local real estate market:

1: 4891 McKee Pl., Burnaby

This solid, 1953 home on a very large 60-by-150 lot in Burnaby would have seemed like a good pick in May 2016 when the owners forked out $1.9 million for their stake in Metro. Then the former B.C. Liberal government introduced its foreign owner’s tax and things started going downhill from there, leading to late November 2019 when that same home was sold for $1.495 million. A loss of $405,000, plus realtor and legal costs. It’s now assessed at $1.5 million. 2018 Assessed: $1,504,500 – 2017 Assessed: $1,659,400

2: 3018 Burfield Pl., West Vancouver

This beautiful, 3,100-square-foot, custom built home was bought new for $3.347 million on April 19, 2016 — again, right at the wrong time. It just sold for $3.1 million, marking a $250,000 loss, plus expenses. 2018 Assessed: $3,114,000 – 2017 Assessed: $3,358,000

3: 6210 Buckingham Dr., Burnaby

Assessed on July 1, 2019, at $2.371 million, this older (1967) home sits on a 10,881-sq.-ft. lot and was bought on April 26, 2016, for $3.11 million. There’s a real theme here of people who bought in early 2016 and are now losing a lot of money. In this case, the loss is a whopping $1 million, as it sold recently for $2.1 million. 2018 Assessed: $2,371,000 – 2017 Assessed: $2,665,000

4: 2929 West 29th Ave., Vancouver

Bought in (you guessed it) February 2016, this 2,200-sq.-ft. Dunbar oldie cost its owner $2.7 million. Assessed now at $2.4 million, the property sold last month for $2 million — a $700,000 loss. 2018 Assessed: $2,406,300 – 2017 Assessed: $2,670,600

5: 667 Baycrest Dr., North Vancouver

This property was bought in March 2017 when the market had already started to drop, so the bath isn’t as hefty as what might have been. The owner paid $2.36 million for a 2,800-sq.-ft. home on a massive 15,000-sq.-ft. lot wedged between Dollarton Highway and Baycrest Drive, three blocks from the water. Listed for $2.36 million (hoping to break even on paper), the house sold for $2.05 million last month — a loss of $310,000. 2018 Assessed: $2,172,000 – 2017 Assessed: $2,260,000

© 2019 Postmedia Network Inc.

Victoria real estate market leaning towards a sellers? market

Gerv Tacadena
Canadian Real Estate Wealth

Victoria’s housing market is expected to be favourable for home sellers next year, according to the latest outlook by RE/MAX.

While conditions are likely to be balanced as 2020 unfolds, RE/MAX said the conditions in the British Columbian capital are expected to lean towards a sellers’ market.

In fact, the region’s average sale price is projected to increase by 3% to $698,661 over the next 12 months as demand remains high and supply remains limited.

“Housing affordability continues to challenge buyers in this region when it comes to homeownership and rentals due to lack of supply. Demand for condos continues to rise as many first-time homebuyers can afford this property type,” RE/MAX said.

Neighbourhoods in the south, such as Fairfield, Rockland, Gonzales, James, and Downtown, are poised to be property hotspots next year due to high demand.

In terms of growth in sales prices, the top Victorian neighbourhoods are Saanich, Langford, Oak Bay, and Sidney.

First-time and move-up buyers are expected to drive the demand for property types such as condominiums, two-storey detached homes, and townhouses, according to RE/MAX.

Copyright © 2019 Key Media Pty Ltd

Metro Vancouver posted a healthy year-over-year gain in November

Steve Randall
Canadian Real Estate Wealth

Home sales in Metro Vancouver posted a healthy year-over-year gain in November.

The Real Estate Board of Greater Vancouver (REBGV) reported 2,498 home sales in the month, a 55.3% jump from a year earlier and 4% above the 120-year average for the month.

Sales were down 12.6% from October’s total of 2,858.

“We started to see more home buyer confidence in the summer and this trend continues today,” says Ashley Smith, REBGV president. “It’ll be important to watch home listing levels over the next few months to see if supply can stay in line with home buyer demand.”

Fewer homes were listed for sale last month with 2,987 new listings, down 13.7% year-over-year and down 26.7% month-over-month; there was a total of 10,770 homes listed for sale on the MLS, down 12.5% from a year earlier and down 12% from October.

Higher prices ahead? The sales-to-active-listings ratio for all property types was 23.2%, above the 20% that analysts typically say means upward pressure on prices.

By individual property type, the ratio was 17.2% for detached homes, 24.9% for townhomes, and 29.3% for apartments.

However, prices remain constrained for now with the MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver at $993,700, down 4.6% year-over-year and down 1.3% over the past 6 months.

Stats by property type Sales of detached homes in November 2019 reached 825, a 59.9% increase from the 516 detached sales recorded in November 2018. The benchmark price for a detached home is $1,415,400. This represents a 5.8% decrease from November 2018, a 0.5% decrease over the past six months, and a 0.3% increase compared to October 2019.

Sales of apartment homes reached 1,222 in November 2019, a 50.9% increase compared to the 810 sales in November 2018. The benchmark price of an apartment home is $651,500. This represents a 3.8% decrease from November 2018, a 1.9% decrease over the past six months, and a 0.2% decline compared to October 2019.

Attached home sales in November 2019 totalled 451, a 59.9% increase compared to the 282 sales in November 2018. The benchmark price of an attached home is $772,800. This represents a 4.4% decrease from November 2018, a 0.8% decrease over the past six months, and a 0.2% increase compared to October 2019.

Copyright © 2019 Key Media Pty Ltd