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Archive for July, 2021

Guidelines on what to expect as a Real Estate regulator

Friday, July 30th, 2021

BCFSA Becomes Real Estate Regulator on August 1: What You Need to Know

Shaheed Devji
BCREA

On August 1, 2021, the Real Estate Council of BC (RECBC) and the Office of the Superintendent of Real Estate (OSRE) will be integrated into the BC Financial Services Authority (BCFSA), resulting in one single regulator for real estate in BC. As a result, RECBC and OSRE will no longer exist. There will be no changes to what the BC Real Estate Association (BCREA) and the province’s real estate boards do.
This change is a result of a key recommendation from the Expert Panel on Money Laundering report released in May 2019 and – according to BCFSA – is intended to centralize expertise and provide strengthened consumer protection through a modern, effective, and efficient regulatory framework.
BCFSA intends for there to be little to no disruption to services during the transition period, which begins on August 1. RECBC and OSRE staff will be integrated into BCFSA, resources from the RECBC website will be migrated to an updated BCFSA website, and phone numbers and email addresses will be redirected to BCFSA.

Three things REALTORS® can do to prepare for the regulatory change
1. Watch BCREA’s regulatory update video
In this video, BCREA VP Government Relations Trevor Hargreaves gives an overview of the upcoming changes, BCREA’s advocacy work to date and how we can support you during the shift.
2. Read the Integration Update from RECBC’s July 2021 Report from Council
RECBC has published its July 2021 Report from Council, which includes an Integration Update exploring several common questions that might arise as a result of the regulatory change.
As the RECBC website will cease to exist after July 31, this link may be updated on August 1 to direct to the new BCFSA website. Keep an eye on the BCREA website for updates.
3. Review resources from BCREA’s Managing Broker Community of Practice
On July 28, 2021, members of RECBC and OSRE who will be transitioning to senior leadership roles within BCFSA August 1 presented at BCREA’s Managing Broker Community of Practice. During the presentation, guests Erin Seeley, Michael Noseworthy and David Avren highlighted some of the key changes and answered questions from attendees.
(REALTOR Link® login required)
Support for REALTORS® through regulatory transition
Realtors should visit the new BCFSA website at www.bcfsa.ca, which will be published on August 1 and will include real estate resources previously housed on the RECBC website. If you have additional questions related to this regulatory change, feel free to contact the new regulator, BCFSA, directly.

BCREA will also be updating our resources, including Standard Forms and professional development courses with updated information and new links as soon as possible, prioritizing changes with the most impact on daily real estate practice. Given this is a manual process, we appreciate your patience.

Additionally, links on the main pages of our website will be changed as appropriate and any new publications we produce, such as blog posts, reports, etc., will include relevant new links. We do not plan to change links in all previous blog posts. We appreciate your understanding.

If you have questions or comments about how these changes affect you, please contact the BCREA Government Relations team at [email protected]. You can also reach out to BCREA VP Government Relations Trevor Hargreaves by emailing [email protected] or calling 236.333.4572.
To subscribe to receive BCREA publications such as this one, or to update your email address or current subscriptions, click here.

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Industrial vacancy rate had plunged to a record low 0.7 percent in the mid of 2021

Friday, July 30th, 2021

Surrey faces heat as it rezones land for industrial use

WI Staff
Western Investor

Council defies residents in backing 605-acre expansion as city’s industrial vacancy rate plunges to a record low of 0.2 per cent

On July 26 the City of Surrey moved to rezone 605 acres (245 hectares) of rural and unused farmland to industrial use in a region where all industrial land is becoming scarce and in very high demand.
Surrey city council will now send the proposed amendments for the South Campbell Heights Area Plan to Metro Vancouver for approval before rubber-stamping the new industrial area.
As of the second quarter 2021, the industrial vacancy rate across Metro Vancouver had plunged to a record low 0.7 per cent.
Surrey has the largest inventory of industrial space in the Metro region, with 39.4 million square feet, but only 0.2 per cent of that is now vacant, also an all-time low, according to a report from Colliers.
Concerns are mounting that the region is in danger of running out of industrial land all together.
According to the Metro Vancouver 2020 Regional Industrial Lands Inventory, 82 per cent of the 28,422 acres of industrial land that was available five years ago has now been developed. Since 2016, industrial development has averaged more than three million square feet a year, and that pace accelerated to 4.4 million square feet annually in the past two years.
Right now, there is 5.2 million square feet of new industrial space under construction and a further 18.5 million square feet planned.
“There is a critical shortage of industrial land in Metro Vancouver,” Paul Morassutti, vice chairman at CBRE Canada, said. “It is our estimation that [it] could potentially, literally run out of industrial land by the early 2020s.”
“The land issue since 2010 has been a prevalent problem, but now it is getting to a more critical point,” said Ryan Kerr, a principal with Avison Young. “We are definitely losing new businesses or existing businesses that want to expand in B.C.”
The Surrey rezoning underlined the political capital needed to create more room for warehouse distribution, manufacturing and other industrial uses.
The city’s public consultation on the rezoning found the vast majority of Surrey residents opposed the plan, largely citing environmental concerns.
Surrey Environmental Partners leader Deb Jack said her group wasn’t consulted. She argued for the land to be a park. The Semiahmoo First Nation also claimed it was not consulted on the rezoning plan.
“Semiahmoo has received no information from the city to make any kind of free, prior or informed consent with regard to this bylaw. Without having any of this information we can probably tell you we do not support this,” said councillor Joanne Charles, whose nation rests on the mouth of the river, near White Rock.
Within the Surrey proposal, about one-third of the land will remain dedicated as “conservation and recreation,” while two-thirds will be zoned as “mixed employment,” from its current “rural” designation.
None of the land is part of the Agricultural Land Reserve.
City staff pointed out that much of the land had been destroyed for farming purposes by past gravel excavation, in suggesting industrial would be the best use for the land.
“The proposed South Campbell Heights Plan will help address the industrial land supply and provide opportunities to accommodate both new industrial businesses and those businesses that are seeking to expand their operations,” the city report said.

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New opportunity waving for Canadian recovering from pandemic

Thursday, July 29th, 2021

The trillion-dollar opportunity you cannot miss

Mallory Hendry
other

Canada’s fastest-growing demographic: why you should ride the ‘retirement wave’

It’s no secret the COVID-19 pandemic was a boon for the housing market. Despite a steep drop-off in equity market valuations at the beginning of the pandemic, as businesses and consumers adapted, “you saw confidence turnaround – and turnaround in a hurry,” said TRREB’s chief market analyst and director of service channels Jason Mercer.

“In less than a year, we exceeded the peak we hit just before the pandemic was announced,” said Mercer, who offered insights on the future of the housing market at Home Equity Bank’s latest webinar, “How to Ride the Retirement Wave”.

The big picture

Mercer predicts that, overall, the housing market will stay strong in the foreseeable future. He argues the key to housing demand is long-term population growth, strong employment levels, and increasing income, with Canada coming out of the pandemic on track to ramp up on all three. Although the labour market hasn’t made as full a recovery, due to harder-hit industries such as the arts, hospitality, and restaurants, Mercer is optimistic that as vaccine uptake increases and accelerates with second doses, those businesses “will start to pick up steam and recover into the fall.”

With borders reopening, immigration is expected to accelerate in 2022 and 2023, forming a tenet of the Canadian recovery plan. In turn, this translates into strong housing demand, both for ownership and rental. This is especially welcome news in the Greater Toronto Area and the Golden Horseshoe, where most population growth comes from immigration.

Inflation rates are the final piece of the housing demand puzzle, and with most homebuyers relying on mortgages, Mercer noted that it’s important to think about where borrowing costs are going.

“The Bank of Canada is laser-focused on inflation and keeping it around the 2% mark over the long term,” he said. While there is anticipation that the bank will raise interest rates at some point, the OFSI stress test means homeowners are accounting for a substantial margin of safety and, therefore, are well-positioned to manage any increase.

As it stands, Mercer noted, interest rates are still quite low and – coupled with the expected population growth in the next few years – will continue to have a positive effect on housing demand.

“Riding the Retirement Wave,” which drew the largest audience Home Equity has seen so far in its series of webinars, also featured Sue Pimento, vice president of referred sales at Home Equity Bank. Pimento highlighted the current market focus on first-time homebuyers and Millennials, explaining that, instead, savvy real estate professionals should be looking to the older demographic, both to help their clients and their business’s bottom line.

“A trillion dollars – that’s how much home equity there is,” said Pimento, adding that with 42% of all homeowners in Canada north of 55 years old but almost all of them – 93% – preferring to age in place, “it’s a problem for anybody who makes their living listing and selling houses for that demographic.”

That’s where the CHIP Reverse Mortgage comes in as the ideal solution for Baby Boomer clients – and the brokers that work with them to make the most of their Golden years.

“Everybody has figured out downsizing doesn’t work – not very many people can yield enough money to retire on, unless they move hours outside of their neighbourhood,” Pimento said. “No wonder they don’t want to list their home.”

CHIP addresses the problems around funding retirement, offering this demographic the option to age in place or “right-size” their home by taking advantage of the growing equity in their homes. It can help those who want funds to help their children with a down payment, finance the purchase of a vacation home, upgrade before sale to increase their profit, or purchase an investment property.

“It’s simply a mortgage with optional payments,” Pimento said. “It’s a tax-free way of accessing equity to finance retirement, among other things, with very little qualifying criteria.”

Presenting the potential effectively

Pimento said real estate professionals have to decode the demographic – something Home Equity Bank, with over 35 years working with homeowners 55 and over and $5 billion under administration, is very good at. You need to give them permission to use the equity, as they’ve spent their whole life paying off their mortgage and lecturing their kids about not being in debt, Pimento noted. The Baby Boomer generation wants to maintain their dignity, control, independence – and their lifestyle. Present the reverse mortgage opportunity to them so that they see the potential as clearly as you do, letting them know they have the most popular Canadian financial plan at their fingertips.

“You have a house, you paid it off, congrats!” Pimento said. “But now it’s time to finance your retirement.”

To learn more, tune into Sue and Jason’s full conversation on “How to Ride the Retirement Wave.” For more information and insight, be sure to explore Home Equity Bank’s full webinar series which was created in response to the pandemic to engage partners and provide education and industry insights, and will continue to grow throughout 2021 and beyond.

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B.C. court ordered to release list also for their privacy and safety concern

Tuesday, July 27th, 2021

Strata council ordered by B.C. court to release list of all owners to one of its members

Susan Lazaruk
The Vancouver Sun

The strata refused, citing privacy and safety concerns, and said it was not in the best interests of the strata community. But the law obligates strata to compile a list and to distribute it when asked, a tribunal ruled

Do you know the names of your neighbours and do they know yours?

A B.C. condo owner went to court to force his strata council to hand over a list of names of all other strata lot owners in his development, after the council refused his request.

A civil resolution tribunal member agreed with the owner. Citing B.C. law, it ordered the strata to compile the list and provide it to the owner, over council’s protestations of privacy and safety concerns, including worries the list could be used for criminal purposes.

“The strata has provided no valid justification for its refusal,” ruled Chad McCarthy.

Ken Johnson several times last year requested an “owner contact list” that he is entitled to under B.C.’s Strata Property Act.

The strata refused, saying he “didn’t provide an adequate reason” and it had concerns about disclosing strata lot owners’ personal information, which includes names, strata lot and mailing addresses, and information on parking stalls, storage lockers and unit entitlements.

The strata passed a motion last summer confirming its refusal to provide Johnson with the list and at a December hearing with Johnson said it wouldn’t release the list to anyone.

But section 35 of the Strata Property Act sets out a strata’s obligation to “create and retain certain records” and section 36 says “on receiving a request from a strata lot owner, properly authorized tenant, or other person authorized by an owner or authorized tenant, the strata must make available” such a list, McCarthy wrote.

The strata had owner information in individual owners files but not in a separate list and it wanted Johnson to bear the cost of compiling it.

The strata also argued disclosing owner contact information could harm those “who have experienced abusive relationships or who have sensitive jobs, such as policing.” It also said it had concerns the list “could be used for criminal purposes.” The strata also noted the information was publicly available elsewhere, such as in the land titles office.

The strata said “disclosure of the list was not in the best interests of the ‘community’” and some owners wanted their names left off.

The tribunal noted the strata had a “statutory obligation” to have an owner contact list under the law and the strata was therefore in violation of the Act. He also said no one had the right to be excluded and an owner doesn’t have to provide a reason for wanting the list nor does an owner “need to demonstrate that his request is in the best interests of anyone.”

“Nothing before me demonstrates that the strata has a valid basis for refusing Mr. Johnson’s owner contact list request,” wrote McCarthy. He noted B.C.’s privacy laws allows for such a list.

He ordered the strata to comply within 21 days and to pay Johnson’s $225 in tribunal fees.

Neither party could be reached for comment.

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B.C. estimates nearly 20 percent of the eligible population are unvaccinated

Tuesday, July 27th, 2021

COVID-19: Unvaccinated British Columbians may face limits on where they can go

Joanne Lee-Young
The Vancouver Sun

Dr. Bonnie Henry said there may be examples where imposing workplace vaccination requirements makes sense for businesses

B.C. health officials are hoping a fresh immunization campaign will get more British Columbians vaccinated against COVID-19, while hinting there could be consequences for those who choose to remain unvaccinated.

‘Vax for B.C.’ is aimed at reaching the more than 900,000 unvaccinated British Columbians, and making it easier for them to get a jab by bringing clinics near work places, lunch spots and vacation areas like beaches.

“The next two weeks are critical to our immunization campaign and, more importantly, to protecting our province and putting the pandemic in the rear view mirror,” the provincial health officer, Dr. Bonnie Henry, told a news conference on Tuesday.

B.C. has one of the highest vaccination rates in the world — with more than 80 per cent of eligible people vaccinated with the first dose and 61 per cent fully immunized — but with new cases on the rise because of the more-transmissible Delta variant, Health Minister Adrian Dix and the head of the vaccine rollout, Dr. Penny Ballem, said there’s more work to be done.

“We want to reach these people,” said Ballem. “They’re across the province and range from nearly 15 per cent unvaccinated in Vancouver Coastal to another 30 per cent in the Northern Health authority and in between in the other health authorities.”

On Tuesday, the province reported 150 new COVID-19 cases with about two-thirds of these, or 95 cases, in Interior Health. That’s an uptick from 112 cases on Thursday and just under 100 each on Friday, Saturday and Sunday.

Under the new vaccination push, drop-in clinics, mobile clinics, and pop-up clinics at community events will be set up in dozens of communities across the province. People who want to get vaccinated will be able to go to walk in and get their first or second shots without an appointment. The requirement for there to be 56 days between the two shots has now been lowered to 49 days.

While some jurisdictions are seeing upticks in vaccination rates after deciding to require proof of vaccination for travel by train or for entry to bars, gyms and restaurants, Henry said vaccination in B.C. would continue to be voluntary and focused on giving “everybody all of the opportunities to make that choice.”

She did, however, hint at the possibility of escalating tactics.

“It is a choice to be immunized, but there are consequences for people who are not immunized and that’s going to be more important for us as we head into the fall, as we know this virus will increase and we’re likely to see other respiratory viruses,” said Henry. “We’ll be looking at the measures that we need to put in place to protect people, particularly those who are most vulnerable.”

Henry said there may be examples where imposing workplace vaccination requirements makes sense for businesses. “If I was running a nightclub, I would want to make sure that my staff are protected. Yes, we absolutely can say, ‘to come in here, you have to be immunized.’ That gives people the level of comfort that they are in a safer environment.”

People who have received two doses of vaccine are significantly less likely to be hospitalized or to have severe illness, said Henry.

B.C. data shows 78 per cent of those hospitalized with COVID-19 now are completely unvaccinated, while another 18 per cent have only received one jab. The province estimates 906,772 people, or nearly 20 per cent of the eligible population, are unvaccinated.

The highest rates are in Northern B.C. with 32.5 per cent unvaccinated, and the Interior with 26.2 per cent, and the lowest in the Vancouver Coastal area at 14.8 per cent.

Henry said that the number of “people who are actually anti-vaccine or dead set against getting immunized is a very small percentage,” saying surveys estimate this group could include one or two per cent of people who have never been immunized, with that number possibly rising to five per cent for the COVID-19 vaccine.

Fewer than five per cent of new COVID-19 cases are among the fully vaccinated, said the B.C. Centre of Disease Control.

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A record-breaking real estate markets in Great Vancouver

Monday, July 26th, 2021

Greater Vancouver real estate record broken with new $42M private sale

Amy Judd
other

A new Greater Vancouver real estate record has been broken with a new private sale recently.

Sotheby’s International Realty Canada said the sale of the Belmont Estate is now the region’s highest single-family residential sale on a single lot.

A listing for the property says the sale price was $58,000,000.

B.C. Assessment shows a sale for the home occurred on July 9. It was a cash sale for $42,000,000.

“Belmont Estate represents an iconic piece of Vancouver history,” Christa Frosch, listing agent with Sotheby’s International Realty Canada said in a release. “From the moment it was listed, it attracted steady local and global buyer enquiries, a reflection of the property’s pedigree, as well as enduring, underlying consumer confidence in Vancouver real estate.

“Ultimately, this bespoke estate was purchased by Canadian buyers. It is truly one of the most exceptional residential offerings, not only in Vancouver but in all of Canada and beyond.”

Hot spring real estate markets across B.C.

Hot spring real estate markets across B.C – Apr 8, 2021

Read more: Demand for Metro Vancouver real estate remains high as prices grow, board says

The house on Belmont Avenue is situated on 1.28 acres and is 21,977 square feet in size.

It has five bedrooms, 12 bathrooms, an elevator, indoor pool and sauna, six-car garage and a private entrance in the in-law’s suite.The three-level garden is inspired by the gardens of The Palace of Versaillein Paris, according to Sotheby’s, and includes Indigenous, mature sequoia trees, golden spruce, maples and a hobby orchard.

The view from the Belmont Estate. Sotheby’s International Realty Canada

A look at the decoration inside the Belmont Estate in Vancouver. Sotheby’s International Realty

Canada

A look at the staircase inside the Belmont Estate. Sotheby’s International Realty Canada

The view from the Belmont Estate in Vancouver’s Point Grey neighbourhood. Sotheby’s International Realty Canada

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Archive for July, 2021

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Archive for July, 2021

BCFSA Becomes Real Estate Regulator on August 1: What You Need to Know

Surrey faces heat as it rezones land for industrial use

North Delta 18-unit retail centre sells for $2.9M over assessment

East Hastings 1,174-square-foot strata retail bought for $825,000

Chilliwack 51-unit high-end multi-family sells for $9.3 million

Surrey 0.90-acre development site sells over ask at $12.3 million

The trillion-dollar opportunity you cannot miss

Strata council ordered by B.C. court to release list of all owners to one of its members

COVID-19: Unvaccinated British Columbians may face limits on where they can go

Greater Vancouver real estate record broken with new $42M private sale