Archive for February, 2022

2.12 acres multi-family in Victoria sells for $25.75 Million

Friday, February 11th, 2022

Starlight pays $25.75 million for Victoria multi-family portfolio

Western Investor Staff
Western Investor

The two properties have a total of 92 rental apartments in prime rental locations within Greater Victoria.

Type of property: Multi-family portfolio

Location: 908 Market Street, Victoria and 1180 Colville Road, Esquimalt, B.C

Number of buildings: 2

Number of units: 92 (total)

Size of property: 64,800 square feet (total)

Land size: 91,690 square feet (total)

Land size in acres: 2.12 acres (total)

Zoning: R3-2 (Victoria) and CD-57 (Esquimalt)

List price: $28 million

Sale price: $25.75 million

Buyer: Starlight Acquisitions Ltd., Toronto

Date of sale: January 31, 2022

Brokerage: Colliers Canada, Victoria, B.C.

Brokers: Ken Cloak, Grant Evans and Dominic Ricciuti

 

© 2022 Western Investor

The oldest building in Vancouver’s Chinatown will soon be home to the Chinese Canadian Museum

Friday, February 11th, 2022

Canada’s first Chinese Canadian museum to open in historic building in Vancouver’s Chinatown

CBC News Staff
CBC Radio

 The Wing Sang building in Vancouver, B.C., pictured in an undated handout photo. The oldest building in Vancouver’s Chinatown will soon be home to the Chinese Canadian Museum, with funding from the province and a real estate marketer. (THE CANADIAN PRESS/HO-rennie)

New funding has been announced for Canada’s first Chinese Canadian museum to open in Vancouver next year.

The Chinese Canadian Museum will be housed in the Wing Sang building, the oldest in the city’s historic Chinatown neighbourhood. The province said it will provide $27.5 million for the project and real estate marketer Bob Rennie will contribute another $7.5 million.

Premier John Horgan said in a statement that the museum will honour and preserve the contributions of Chinese Canadians in B.C. and shine a light on injustices.

Culture Minister Melanie Mark says the museum is a call to action from those who have historically endured poor treatment.

The building, located at 51 East Pender St., will be owned and operated by the Chinese Canadian Museum Society of British Columbia. 

Grace Wong, chair of the Chinese Canadian Museum Society of B.C., says she hopes the first-of-its-kind museum will attract visitors from across Canada.

She says it’s meaningful to house the museum in the Wing Sang building, a vital link to the  neighbourhood’s past.

 

Merchant Yip Sang and family stand outside the Wing Sang building, circa 1902. (City of Vancouver archives)

“There’s a part where you can still see the two exterior walls and there’s a gap and it harkens to the time when there were curfews on Chinese and they couldn’t be in the streets so that had these narrow passageways so that people [could] go between buildings,” she said. 

“That brings to life what life was like in that time.”

She says she hopes the museum will contribute to the revitalization of Chinatown. 

Last year, a new cultural centre opened in Chinatown to showcase and celebrate Chinese Canadian heritage.

The Chinatown Storytelling Centre, located a block away from the Wing Sang building, features over 150 stories from Chinese immigrants who played a significant role in the building of the country, as well as Chinatown’s current living history. 

Community leaders have called on all levels of government for more resources to combat mounting crime in the neighbourhood.

MP Jenny Kwan, who represents the riding of Vancouver East, has been lobbying for Chinatown to become a UNESCO World Heritage Site, which would deem it an international landmark with legal protection and could help secure the funding to preserve and maintain its streets.

 

©2022 CBC/Radio-Canada.

Accurate forecast helps manage population growth and housing completion

Friday, February 11th, 2022

Better forecasting would alleviate housing crisis: Expert

Martin Slofstra
The Vancouver Sun

Past population growth forecasts underestimated GTA population growth from international sources by roughly 120,000 persons from 2016 to 2021. SUPPLIED

Forecast ‘failures’ include an underestimation of population growth in Ontario and numbers of families who moved out of Toronto

 

As senior director, policy and innovation, for Smart Prosperity Institute, Dr. Mike Moffat only knows too well the perils of involved in population forecasting and how much is at stake for Ontario new home buyers.

In general, the forecasts have been “too optimistic” — underestimating population growth and overestimated housing completions — which means municipalities planning for growth have used inaccurate and outdated information, and in turn, contributed to the lack of affordable housing in the province.

Moffat was speaking at the release of a new report called Forecast for Failure: How a Broken Forecasting System is at the Root of the GTAH’s Housing Shortage and How It Can Be Fixed at a recent webcast organized by industry associations BILD and WEHBA.

“Forecasts of population growth and housing completions are the foundation on which municipalities base their projections of future housing requirements,” said Dave Wilkes, BILD President and CEO.

“The Growth Plan seeks to manage growth by determining how much housing gets built, where it gets built and how dense it is. If the forecasts that inform the plan are inaccurate or not up to date, then the housing supply that comes to market in the future may not match demand.”

Moffat says the forecasting problem has been a long time in the making. For example, past population growth forecasts underestimated GTA population growth from international sources by roughly 120,000 persons from 2016-21 while overestimating the size of the housing stock by approximately 26,000 units.  “We should have seen this coming and we did not plan for this (excess demand in housing),” he adds.

Another forecast failure cited by the report was related to how many people moved away from Toronto and to the rest of Ontario.

A previous forecasted number of 24,600 in 2005 and revised upward to 31,500 in 2012 missed the mark completely as the actual number was 47,136 in 2018, as growth from international sources (students and immigration) had been underestimated.

“If actual events and policy changes were factored into the growth plan, we could have bulit more housing, and some of the current problem could have been avoided,” says Moffat.

Further, policy changes such as in 2014 when international students were allowed to work off-campus without a work permit, or in January 2015 when the federal government implemented an Express Entry program “can have a substantial impact over time,” he adds.

Lack of good forecasting can also have significant fall-out as witnessed by the huge exodus of young families leaving the GTA and Hamilton areas and who must “drive until they qualify” for home ownership.

“The entire area is facing unprecedented housing supply challenges and achieving balance with the present demand will require roughly 30% more new housing units per year,” said Mike Collins-Williams, Chief Executive Officer of WEHBA which represents builders in the Hamilton and Burlington area. “In the absence of that, more people, and in particular young families looking for room to grow, will continue leaving more expensive cities to look further afield to find housing they can afford.”

In an interview, Moffat says he is “cautiously optimistic” that things will improve, saying if the reports recommendations are followed and forecasts are updated more often, and policy changes were monitored more closely, it will help the housing industry move in the right direction.

Also important he says is having one set of numbers to work from as existing forecasts such as Ministry of Finance population projections may differ from industry numbers.

And while there are other factors that limit the supply of housing — lack of skilled trades and the slow development approval process are often cited —better population forecasting could only help improve the current situation.

© 2022 Vancouver Sun

“Recovery takes a long time” conceded Farnworth

Friday, February 11th, 2022

Vaughn Palmer: Despite legislature rhetoric, Lytton no closer to knowing ‘when’

Vaughn Palmer
The Vancouver Sun

Opinion: All parties professed support for Lytton, but opposition parties unable to get commitment on when rebuild starts

Damaged structures in Lytton on Friday, July 9, 2021, after a wildfire destroyed most of the village on June 30. Photo by THE CANADIAN PRESS/Darryl Dyck

VICTORIA — While the legislature readily supported an $8.36 million bailout for Lytton this week, the opposition parties challenged the New Democrats as to why it has taken so long to get to this point.

 

“We’re now at 225 days,” Green house leader Adam Olsen said Thursday, citing time lapsed since the village was destroyed by wildfire on June 30.

“I have to ask why a bill of this nature did not come forward in the fall session. We spent six weeks in this house debating legislation. This would have been a welcome bill at that time.”

The bill before the legislature this week provides three years worth of funding to sustain village operations, restore records, plan recovery and replace the loss of tax revenue from properties destroyed by wildfire.

The funding bill was approved in principle before the house adjourned Thursday. It is expected to clear the final stage of debate early next week and then receive royal assent.

But as the B.C. Liberals noted during debate, the money will go to restoring government operations, not homes, businesses and the rest of the community.

B.C. Liberal MLA Peter Milobar: “If this is the key to restoring Lytton — something as simple, frankly, when it comes to government, as record management, record storage bylaws which everyone would have known by July 1 had been wiped out by the fire — and it took us 7½ months to see it in front of this chamber, Lord help us with all the other things that need to happen to rebuild that community.

“Absolutely, the local government side of the equation needs help. It needs resources. It needs help with bylaws. That’s a given,” continued Milobar, leaving no doubt that the Liberals would vote for the bill.

“But the residents, the people that live in the homes that municipality serves, need help as well.

“Seven and a half months in already and not one building permit has been issued for a residential structure to be rebuilt. People can’t even get people in there to start looking at how to get plans drawn to start moving through the process.”

Time was running out, particularly for insurance claims.

“Most insurance claims have a two-year clock on them,” said the MLA. “Two years is what you get for most of them to rebuild.”

Several New Democrats touted the legislation as evidence that in the case of Lytton the premier and the government “has your back.”

Heaping scorn on that notion in light of all the delays was B.C. Liberal MLA Jordan Sturdy.

“It certainly doesn’t build confidence that this government has people’s backs,” he told the house.

“People who lived in Lytton are dispersed, displaced, evacuated and with no real plan or path on how they’re to return.

They continue to live on couches, in hotels, with friends. Will it never be their home again? Really no idea.”

The delays were driving up the cost of rebuilding, Sturdy noted.

The insurance industry has already boosted the estimated cost of recovery to $102 million from $78 million “because of all the delays.

“That’s to date. Where are we at in another six months or another year?”

The delays could also affect the fate of the community said Sturdy, drawing what he learned in a briefing with the Insurance Bureau of Canada.

“They fear that the community will actually dissipate and really never recover, because people move on. They find jobs in different places. Their kids get ensconced in other schools, and they just never return.

“The insurance bureau’s experience is that after a while — and we are getting to more than awhile — people take insurance payouts and they never return.

Several Liberals contrasted the delays in Lytton to what happened with Fort McMurray, the Alberta city ravaged by wildfire in May 2016.

Some 88,000 residents were evacuated and more than 2,500 residences destroyed.

But when Alberta’s then NDP premier Rachel Notley visited Fort McMurray six months later, the municipality had already issued 229 rebuilding permits and another 1,700 for demolition.

By the first anniversary of the fires, 652 rebuilding permits were proceeding and three dozen families had already moved into new homes.

There are differences between the two cases of course. Fort Murray’s municipal government, its records, and operations survived. Lytton was all but obliterated.

There were also significant holdups because of hazardous materials on the Lytton village site.

B.C.’s heritage legislation treats every building site as a potential archeological dig, needing separate permitting.

Stung by the attacks, NDP house leader Mike Farnworth defended the government’s record on Lytton.

The government put up emergency money last fall for residents driven from their homes.

The medical services building will be replaced. Ditto the RCMP detachment.

Farnworth, who is also solicitor general, blamed the fall floods that cut off Highway 1 for the slow progress on debris removal at Lytton.

“ We’ve made it clear that once that highway was cleared, that debris then would be able to be removed faster.”

“Recovery takes a long time,” conceded Farnworth.

“But to say that this bill is the only thing that has taken place in terms of recovery, that government has forgotten about Lytton, is absolutely wrong.

“We know the importance of the community of Lytton. We want it rebuilt, and it is going to be rebuilt.”

But when? Excuses aside, that remained the outstanding question as the week ended.

[email protected]

© 2022 Vancouver Sun

9,593 square feet retail strata in Vancouver sells for $11.5 million

Friday, February 11th, 2022

Five Vancouver retail strata lots under 10,000 square feet total sell for $11.5 million

CBRE Vancouver
Western Investor

New West Boulevard ground-floor retail lots were fully tenanted at time of sale by Kerrisdale Lumber.

Type of property: Retail strata

Location: 1 to 5, 6333 West Boulevard, Vancouver

Number of units: 5

Property size: 9,593 square feet

Zoning: C-2

Year built: 2019

Sale price: $11.5 million

Brokerages: CBRE Limited, Vancouver and Marcus & Millichap, Vancouver.

Brokers: Seller: Jack Allpress and Adrian Beruschi, CBRE.

Brokers: Buyer: Martin Moriarty and Mario Negris, Marcus & Millichap

© 2022 Western Investor

2022 Housing Market Predictions that condos will lead price growth this year

Friday, February 11th, 2022

Are GTA Condos Poised for a Price Increase?

Rachel Rehkopf
other

 Historically, if you were in the market for a condo in the Toronto Region, you could expect to pay about half the price of the average detached home to secure your desired suite.

But today, the gap between the two home types has widened to its second-largest gap in recent history – begging the question, are condos in the GTA poised for strong price growth this year?

Although no one can predict the market, to help understand the historic market relationship between condos and detached price points Zoocasa has analyzed 10 years of market data and today’s unique market factors to help understand what could be in store for the condo market in 2022.

Detached Homes and Condo Gap the Second Highest It’s Been in Recent History

Comparing January figures from 2011 – 2021, the ratio between the average detached home price and condo apartment price in the Toronto Region was 1.99. This means, historically, a detached home would cost around double the price of a condo.

Today, this ratio has crept up to 2.33, the second-widest it’s been in the last 11 years. The last time the gap between the two home types was this high was in January of 2017, the same year new policies like the Federal Stress Test and Ontario’s Non-Resident Speculation Tax were announced to help cool the industry after the GTA market (in particular, detached homes) saw extremely strong price appreciation in 2016.

Following the 10-year average price ratio between detached homes and condo apartments; the current average price in the GTA for a condo apartment would be estimated at $875,034*, $100,000 more than they’re priced today.

With the gap between the two home types widening beyond the historical average, and upcoming market factors that could make lower-priced homes more popular, condo apartments in the GTA could see stronger price growth in 2022.

 

What Factors Could Cause Price Gains Amongst the Condo Segment?

Pandemic-era lifestyles have led to spacious, suburban homes gaining immense popularity amongst buyers, and have experienced corresponding price gains across the province. However, although condos experienced a slower period during the early months of the pandemic, prices promptly rebounded as lockdown measures lifted and vaccines rolled out.

Looking ahead into 2022, the historically large gap between condos and detached home price points isn’t the only factor that suggests we could see strong growth in the condo segment this year.

Economically, rising interest rates as a result of the Bank of Canada ending emergency-era monetary policy could result in more affordable condo homes surging in demand in comparison to their pricier counterparts. We saw this phenomenon play out in 2018 when interest rates rose last. During this time period, sales velocity in the Toronto Region was down across all product types, but price growth was highest amongst condo townhomes and apartments, which grew by  9% and 10% respectively that year. Comparatively, detached homes grew only 4% during that same period.

For this reason, Zoocasa has predicted in its 2022 Housing Market  Predictions that condos will lead price growth this year. According to CEO Lauren Haw, “Taking cues from 2018, when interest rates rose last, we can predict that the most affordable price points in the market, like condos and townhomes, will lead growth in 2022 as a result of higher borrowing costs.” 

Outside of economic factors, just as increased lockdown measures made city-living less desirable, the softening of pandemic restrictions and a return to both working and playing downtown may increase buyer demand for more connected, condo lifestyles in the city centre.

What Should Today’s Buyers Know About Buying a Condo?

For buyers considering purchasing a condo in the GTA, Zoocasa REALTOR Ross Aitken explains, “In the first month of 2022 alone, the average price for a condo in the Region grew $36,000. The market is moving quickly, in no small part due to buyers being optimistic and excited for a return to enjoy an urban lifestyle after nearly two years of recurring lockdowns.”

When asked about how the condo segment may react to some of the economic factors influencing the market this year he shares, “Usually, when we see detached price gains slow, condos will grow. Heading into the new year, major bodies like the Toronto Regional Real Estate Board are expecting price appreciation to moderate from the record pace we saw in 2021, and rising interest rates will only make the most affordable homes on the market more attractive. I’m anticipating that we’re going to see a big year for condos in the Region.” 

January’s started the year off to a strong start, with buyers for all product types finding themselves in stiff competition to purchase a home. “What today’s buyer needs to know is that success really starts with due diligence. Properties are moving quickly in this market, if you’re serious you need to be able to compete. This means having your mortgage pre-approval completed and your lawyer ready to review the status certificate. Your agent will be able to walk you through getting your team in place beforehand so you’re ready when the right property comes to market. Preparation will pay off!”   

© 2015 – 2021 Zoocasa Realty Inc., Brokerage

US inflation hit a 40-year high in January

Thursday, February 10th, 2022

US braces for a huge mortgage rate hike next month

Ryan Smith
other

The latest figures are pointing to a big interest rate increase in just weeks 
US inflation hit a 40-year high in January after a larger-than-expected rise in the consumer price index, driven by increases in the cost of food, electricity and shelter. The inflation numbers have led financial markets to price in a higher chance that the Federal Reserve will hike rates by 0.5 percentage points in just over two weeks.
The consumer price index rose 7.5% from a year earlier on the heels of a 7% annual gain in December, according to data released Thursday by the US Labor Department. Economists had projected an annual gain of 7.3%, The Australian Financial Review reported.
Inflation rose 0.6% month over month in January, blowing past economists’ prediction of 0.4%. The surprise spike led Fed futures markets to increase the odds of a 50-basis-point hike in the official Fed funds rate at the central bank’s march meeting to over 50%, AFR reported.
Federal Reserve board member James Bullard said the inflation numbers meant the Fed needed to mull an inter-meeting increase. Bullard suggested that hikes totalling 100 basis points would be required by July 1.
Skyrocketing inflation has eroded wage gains of 5.7% last year and weakened the purchasing power of American households, AFR reported. On Thursday the White House outlined what it called a “comprehensive strategy” to lower costs for working families. President Joe Biden said that his administration would be “all hands on deck” to combat inflation.
“On higher prices, we have been using every tool at our disposal, and while today is a reminder that Americans’ budgets are being stretched in ways that create real stress at the kitchen table, there are also signs that we will make it through this challenge,” Biden said.
Read next: Bank of Canada makes benchmark rate announcement
Republican Senate minority leader Mitch McConnell was quick to jump on the news, saying that anyone who hadn’t received at least an 8% pay raise had been given a pay cut by Democrats’ policies, AFR reported.
The inflation numbers reinforce the Federal Reserve’s intention to start hiking rates next month, and have already altered market expectations. Matthew Luzzetti, chief US economist at Deutsche Bank, changed his outlook on a March hike after the figures were released, AFR reported.
“This morning’s CPI data, which rose more than expected with outperformance driven by persistent items like rent and medical services, has turned that risk scenario into a baseline,” Luzzetti said. “With inflation pressures showing signs of accelerating in the near term, we now anticipate that the Fed will undertake a 50bp rate hike in March to kick off the tightening cycle.”
Bank of America’s Alexander Lin has predicted seven 0.25-percentage-point rate hikes this year due to inflation, AFR reported.
“For the Fed, this report provides another wake-up call,” Lin said. “Inflation is here and it continues to make its presence known everywhere. We remain comfortable with our hawkish call for the Fed to hike seven times this year, beginning at the next FOMC meeting in March.”

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Employment growth nearly quadrupled projected in 2021 | Build Force Canada

Thursday, February 10th, 2022

Trade shortage threatens B.C.’s construction pace

Albert Van Santvoort
Western Investor

An estimated 64,000 additional tradespeople will be needed in B.C. over the next 10 years

B.C. construction industry is adopting training and recruitment campaigns to fill a persistent labour shortage in the province | Chung Chow

An estimated 64,000 additional tradespeople will be needed in B.C. over the next 10 years

Many B.C. construction industry businesses held out hope that COVID-19-related job losses in other sectors of the economy might help to relieve some of their labour shortage issues.

But a flood of new workers into the building sector never materialized, and the industry continues to struggle with labour supply issues.

“In 2020 with COVID we had our first material decline in construction employment,” said Brynn Bourke, executive director at BC Building Trades.

In 2019, the year before the pandemic, construction employment was expected to increase by 17,000 over the following 10 years; in 2021 that projected employment growth nearly quadrupled to 64,900, according to data from BuildForce Canada.

Chris Atchison, president of the BC Construction Association, said that while some people may have lost their jobs during the pandemic and accepted alternative employment in the construction industry, their numbers were not large enough to show up in the data.

Atchison added that even if closures in other sectors did spur an increase in construction industry employment, it would have been temporary, because any flow of employees from other industries would likely have reversed once those businesses reopened.

There has been tremendous pressure on the industry to maintain the status quo on work that was underway at the beginning of the pandemic, Atchison said.

At the same time, the industry increased its new project intake, which worsened the labour supply shortage. Major public and private investments were made over the past few years in infrastructure projects ranging from LNG Canada to the Broadway subway, and additional provincial and federal infrastructure projects were initiated during the pandemic. That, combined with the need to repair critical infrastructure damaged by natural disasters, is putting even more pressure on an already strained employment landscape.

An out-dated training system is at least partly to blame for the trade shortage, according to Bourke. Traditionally, high school students who decide to enter a trade choose their courses in grades 11 and 12 based on that decision. Today, the average apprentice is 28 years old and, contrary to the old high school model, many have chosen to switch careers and join a trade in their late 20s.

Bourke added that the industry is becoming increasing reliant on this growing labour pool to fill job vacancies, but these potential employees find upgrading or proving their high school math skills a barrier to the trade.

A lack of awareness is another issue affecting employment levels within the construction industry, according to Bourke. People often don’t consider the wide array of career opportunities that exist under the umbrella of trades, including those in less widely known trades like insulator or elevator mechanic.

Construction unions, businesses and industry groups are working to attract more people into the trades by making it easier for them to learn about career opportunities. 

“One of the big projects that we’re working on in the building trade is we’re trying to demystify construction,” Bourke said. We’re trying to make it as easy as possible to connect with people who are interested in the building trades.”

BC Building Trades has taken on a number of initiatives to attract more people into the industry, including an upskilling program that identifies the competencies a tradesperson would need and provides guides to help them through some of the education barriers such as high school level math competency.

But Bourke said that not everyone is helping.

“There are two different kinds of players in the industry. Those who train and those who poach.”

But as the labour shortage grows, the industry is beginning to have a greater appreciation for the time and energy it takes to develop a skilled workforce, and, according to Bourke, more companies are beginning to take on the responsibility of training apprentices.

B.C. is in the process of mandating certification in 10 trades, which means a worker needs to be an apprentice or a journeyman to perform that job. B.C. was the only province that didn’t have compulsory trades certification, and Bourke said that it will help encourage more businesses to take on a training role.

Atchison said that the industry is also trying to encourage more diversity within the construction workforce to help reduce the labour shortage.

The industry, which is dominated by white males, is hoping that a concerted effort to attract women and new Canadians to the trades will help increase B.C.’s construction trades talent pool. •

 

© 2022 Western Investor

42 units multi-family in Calgary sells for $6.58 million

Thursday, February 10th, 2022

Calgary 42-unit multi-family package sells for $6.58 million

Avison Young
Western Investor

The two-property rental portfolio is in Calgary’s popular Mission District.

Property type: Multi-family portfolio

Locations: 111-117 24th Avenue SW & 316 18th Avenue SW, Calgary.

Number of buildings: 2

Number of units: 42 (total)

List price: $6.73 million

Sale price: $6.58 million

Date of sale: February 4, 2022

Brokerage: Avison Young, Calgary

Broker: Haig Basmadjian

 

© 2022 Western Investor

42 units multi family in Calgary sells for 6 58 million

Thursday, February 10th, 2022

Calgary 42 unit multi family package sells for 6 58 million

Avison Young
Western Investor