City of Vancouver approved over 8,800 new homes in 2021

Michelle McNally
Livabl

Last year, the City of Vancouver approved thousands of new housing units, the most approvals since the city’s 10-year housing strategy was implemented in 2017.
Recent information published by the City shows that over 8,800 homes were given the green light in 2021.
For the second consecutive year, over half of all Vancouver housing approvals were purpose-built-rentals or for social housing in 2021, according to the City, which is a “major milestone,” considering that 50 per cent of current residents and 75 per cent of new households are renters.
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The Housing Vancouver Strategy, which was adopted in 2017 to address the region’s housing crisis, aims to build 72,000 new homes across Vancouver over the next 10 years between 2018 and 2027. Purpose-built rentals and condo units make up the majority of the City’s housing decade-long target, which account for 20,000 and 30,000 units of the 72,000 total. To date, the City says it has achieved 52 per cent of its housing objective.
“Vancouver is experiencing a high demand for housing, fuelled by job recovery, higher migration to BC, and students returning to in-class learning,” said Theresa O’Donnell, Vancouver’s general manager of planning, urban design and sustainability in a press release. “Encouraging the development of new rental housing is critical to ensuring there are a variety of housing options to meet the diverse needs of people who live and work in Vancouver.”
Last year, 1,344 new social and supportive housing units were approved, marking the second-highest quantity of approvals since 2010. The number of social and supportive housing approvals surpassed 2021’s annual approval target of 1,200 units. So far, 7,128 units in this category have been approved to date, 59 per cent of the City’s 12,000-unit goal for the next decade.
Another 2,956 units of new purpose-built market rental housing was given the thumbs up in 2021, including 176 new below-market rental units. This was well above the City’s 2,000-unit objective for 2021 and marks the 43 per cent completion mark for the 10-year target. Of the total rental approvals over the past five years, the City says that 600 units have been approved as below-market rental housing, which meets 15 per cent of the 10-year goal of 4,000 units for this housing type.
In 2021, 3,779 condo units were approved by the City, more than the 2021 target of 3,000 suites for the year. A total of 17,498 condos have been approved up to the five-year mark of the Housing Vancouver Strategy.
Nearly 300 laneway homes were given the stamp of approval in 2021. While 61 per cent of the City’s 10-year benchmark of 4,000 laneway homes has been approved so far, last year’s approvals were only 75 per cent of the 400-unit goal for 2021. Similarly, 456 townhomes and coach houses were approved last year, but this fell short of the 600-home target for 2021, according to the City of Vancouver.
In addition to approvals, about 1,700 new homes were completed in 2021, comprising 689 new purpose-built rental housing units and 1,669 social housing residences.
“While the City is making significant progress toward enabling new housing supply, much work is needed to address the current housing need, future demand, and long-standing backlog in delivery of non-market and rental housing,” said O’Donnell.

Calgary home sales hit record level for second straight month

Frank O’Brien
Western Investor

April transactions were up 6 per cent, prices rise 2 per cent year-over-year

Calgary’s condo apartment benchmark price is up 8 per cent year over year to $262,700. | Western Investor
Following an all- time record high month for sales in March, Calgary housing sales have set record high for the month of April, reports the Calgary Real Estate Board (CREB).
“Sales remain exceptionally strong and are likely being limited due to supply choice in the market,” said CREB chief economist Ann-Marie Lurie.
New listings trended down relative to last month and levels recorded last year. With the sales-to-new listings ratio remaining above 74 per cent, there was not much of a shift in overall inventory levels.
With 4,850 units in inventory levels are far lower than what was recorded in April since 2014. What has changed in the market is the composition of the inventory levels. Detached houses comprise a smaller share of the inventory, especially for properties priced below $500,000.
Overall, the Calgary market has seen the months of supply remain below two months since November of last year, placing significant upward pressure on prices. The benchmark price in April reached $526,700, which is nearly 2 per cent higher than March 2022 and 17 per cent higher than April of last year. 
For the first time since spring of 2020, year-over-year detached sales slowed, to 1,815 sales. A decline in sales occurred for homes priced under $600,000. This pullback in sales for lower priced homes was likely related to supply declines. Inventories in the detached sector have not been this low for the month of April in nearly 15 years. 
This continues to place upward pressure on prices. The detached-house benchmark price rose to $628,900 in April, 19 per cent higher than last year. 
Apartment condominium sales eased relative to last month’s record highs. But, with 642 sales this month, activity improved by over 46 per cent compared to last year. reaching a record high for April.
The condo apartment benchmark price, at $262,700, currently sits 8 per cent higher than levels recorded at this time last year, CREB reports.

© 2022 Western Investor

Low inventory, higher demand boosts Canadian new condo prices in Q1-2022

Michelle McNally
Livabl

The cost of buying a brand new condo apartment in Canada increased a little more during the first months of 2022 thanks to higher demand from purchasers and less inventory on the market.

Statistics Canada recently released its quarterly New Condominium Apartment Price Index (NCAPI) report for Q1-2022, which tracks changes over time in developer selling prices for units in newly-built apartment-style condos. The NCAPI report now covers nine census metropolitan areas (CMAs) — Calgary, Montréal, Ottawa, Toronto, Vancouver, Victoria, Edmonton, Halifax and Québec City.

In Q1-2022, the new condo price composite for the nine CMAs grew 1.8 per cent from Q4-2021. Between the nine urban markets, new condo prices rose in Toronto, Vancouver, Victoria and Québec City compared to the previous quarter. Meanwhile, prices dropped in Halifax, Ottawa and Edmonton, but remained unchanged in Montréal and Calgary on a quarterly basis.

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Compared to Q1-2021, new condo prices rose 7.3 per cent, a trend that was mostly attributed to price growth in Toronto (8.9 per cent) and Vancouver (8.3 per cent). Prices for new condo apartments increased at a slower annual pace for the second quarter in a row in Montréal (3.5 per cent), Ottawa (2.6 per cent) and Victoria (2.4 per cent).

In Q1-2022, Calgary recorded its fifth straight quarter of new condo price increases on a year-over-year basis, which jumped 2.8 per cent.

As a result of the pandemic, real estate demand shifted to larger living spaces between 2020 and 2022 according to Statistics Canada, a pattern that allowed new condos to be more affordable as opposed to single-family dwellings.

“This caused single-family home prices to accelerate faster than condominium apartment prices,” said the NCAPI report. “Increased sales, along with record-low home supply continued to push prices up, leaving condominium apartments relatively more affordable for many buyers in Toronto, Vancouver, Montréal, Ottawa, and Victoria.”

New condo prices rise 4.2 per cent in Vancouver

Quarter-over-quarter, new condo prices increased the most in Vancouver compared to the other CMAs, where they jumped 4.2 per cent in Q1-2022.

According to Statistics Canada, this growth was stimulated by falling inventories and continued demand for new condo units. The inventory situation has also not improved over time. Data from the Canada Mortgage and Housing Corporation (CMHC) shows that the inventory of under-construction condo apartments fell 4.7 per cent quarterly in Q1-2022, the third consecutive quarter of inventory declines.

Higher Vancouver rents have been attracting investors to the city, which has caused the number of available units to drop and for new condo prices to rise.

 

“As opposed to single-family homes, condominium apartments remained a relatively affordable option for first-time home buyers, but also for investors wanting to jump into a hot rental market,” the report noted.

In addition to Vancouver, the cost of a new unit was also notably up in Toronto and Victoria, where prices increased 1.4 per cent and 1.3 per cent between Q4-2021 and Q1-2022.

According to the Building Industry and Land Development Association (BILD), Toronto reported higher-than-normal new construction sales in January and February. Meanwhile, new  condo apartment supply has been quite low, representing about three months of total inventory based on average sales levels for the past 12 months when a balanced market would normally have nine to 12 months of inventory.

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First office tower to be built post-pandemic in downtown Vancouver offers enticements

Joanne Lee-Young
The Vancouver Sun

Each floor will have its own air circulation and filtration system that can be sealed off and controlled separately from the rest of the building.
Rendering of Vancouver’s first post-COVID office tower at 1166 West Pender. It will be 32 storeys and total 344,000 square feet with 12,000-square-foot office floor plates. Photo by Renderings submitted by Reliance Properties and Hines /Steelblue
The top floors of a 32-storey office tower that is about to begin construction in downtown Vancouver will each have large, private outdoor spaces in the form of cascading green terraces down the front of the building.
Developers hope this feature will help tenants make it more appealing for their employees to work in-office rather than at home.
The project comes as companies are still guessing at the future of work arrangements, but see that creating a balance is key to keeping talented staff.
“It’s become increasingly important to companies that they attract employees back to the office, especially valued employees, who (may) have opportunities elsewhere and can, to a degree, dictate terms of work,” says Jon Stovell, president and CEO of Reliance Properties in Vancouver, which is working with Houston-based Hines real estate firm on the tower that will stand at 1166 West Pender.
“They (want) work places that have strong social engagement, activity amenities, and great, open space, or air privacy.”
Each floor in the building will also have its own air circulation and filtration system that can be sealed off and controlled separately from the rest of the building.
“At the beginning (of the pandemic), it was all about touching and surfaces,” said Stovell. “That turned out to be not really the main issue. The main issue turned out to be air quality and purity.”
There are other large tower projects in the downtown core that have been underway during the pandemic that were mostly pre-leased.
But this is the first to begin construction and the leasing process since the pandemic threw work arrangements into disarray.
It is scheduled to be completed in late 2025 or early 2026, and comes as there has been much discussion about the future of working in offices.
Even though routine work can be done from home, there is still a need to be in offices for more collaborative tasks such as strategy development and team building.
Andrew Creighton, owner of the growing engineering consulting firm B.C. Building Science, recently purchased office space in South Vancouver at Marine Landing in hopes of responding to future shifts in recruiting staff.
“We realize that with some of our staff, probably two-thirds are working hybrid, and more at home than at the office. If we force them to go to the office, they would be pretty disappointed. Reading all the research and articles, we would probably risk losing some staff,” says Creighton.
“But we know we’re going to have to design a hybrid space for these people,” he says. “We want to try to promote people coming to the office at least part time, but we need an attractive place for them to come.”
This means being close to transit and amenities such as restaurants and breweries, and include areas where staff “can randomly collaborate.” It also means adding semi-private, more quiet spaces so engineers can focus and be productive or continue to conduct virtual meetings.
Bringing back parts of the workforce for less time may not be enough to sustain the small businesses that populate downtown in areas around office buildings.
Revenues for one in four small businesses surveyed in April are currently being hit because of a slow return to the office by downtown workers despite the lifting of COVID restrictions, according to the Canadian Federation of Independent Business.
Owners in some sectors are suffering even more, with 46 per cent of those in hospitality and 31 per cent in personal services feeling a continued pinch.

© 2022 Vancouver Sun

International giant opens Toronto office as it targets Canada real estate

Fergal McAlinden
other

The company has made a significant appointment to help propel its Canadian growth
Blackstone Inc., the world’s largest alternative asset manager, has opened an office in Toronto as the company seeks to expand its footprint in Canadian real estate.
In a statement released on Monday, the company said it has appointed Janice Lin as head of its real estate business in Canada, with the former chief investment officer at Revera to “help drive Blackstone Real Estate’s Canadian footprint as it continues to invest across all asset classes, with a focus on its long-term presence in the country.”
According to Bloomberg, Blackstone’s Canadian real estate assets consist of about 450 properties valued at a total of around $14 billion. Logistics holdings account for the majority of those assets. The company invests capital on behalf of pension funds, large institutions and individual investors.

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Saskatoon finalizing options for a downtown event district

Peter Mitham
Western Investor

Plans call for relocating SaskTel Centre downtown, helping support growth in the city’s core
An advisory committee is finalizing options for relocating SaskTel Centre to downtown Saskatoon from its current location on the city’s northern edge.Instagram
Saskatoon city council hopes to receive a shortlist of options for a new downtown entertainment and event district by the end of June.
An advisory committee chaired by councillors Cynthia Block and Troy Davies is reviewing options for the venture, which would create a zone similar to the Ice district in downtown Edmonton.
The hub of the Ice district is Rogers Place, which replaced the Northlands Coliseum in 2016 and moved the Edmonton Oilers’ home closer to downtown. It has been credited with adding vibrancy to the city’s core and helping it stage a quick recovery from pandemic restrictions.
Saskatoon entertains a similar vision for SaskTel Centre, a 15,200-seat sports complex built in 1988 on the northern edge of the city beyond John G. Diefenbaker International Airport.
Centre management commissioned a report in 2018 in partnership with TCU Place, a 104,000-square-foot convention and arts centre in the downtown core that recommended relocating the aging sports complex and rebuilding it in a more central location.
“When you put amenities where people are, they are more highly used, but also the amenities and opportunities around them are also better utilized – whether that’s housing, whether that’s restaurants or shopping,” said Block, whose ward includes in the downtown core. “Council made the decision, when it comes time to consider replacing SaskTel Centre’s existing location, it will be downtown.”
Six potential locations were identified, and the advisory committee aims to have a short-list for council to consider by the end of June.
“You need to build a district. It’s not about one thing. It’s about a place where people want to be, it has to be a place where everyone sees themselves included, not just event-goers,” Block said. “Every site had to be evaluated to find out if the mechanics could actually even work. … It needs to have a certain amount of space it needs to have access to public transit, it needs to have parking options.”
A vision for the project was sketched out with the help of former Vancouver co-director of planning Larry Beasley, who facilitated workshops and created enthusiasm around how a downtown entertainment district could create excitement and opportunities for the city.
“It was very insightful about understanding the mechanisms that help a city grow, attracting the right kind of investment,” said Block. “We’re getting closer in that regard and also figuring out a grander scheme on a district.”
Work on the initiative was delayed by COVID-19, but Block expects the process to pick up speed once the shortlist of potential locations is identified.
“It’s been three years at least our community has been waiting to find out what are those options,” she said.
The final decision lies with city council. The schedule calls for a preferred site being selected later this year, followed by development of a district master plan by the end of 2023. A funding plan would follow, as well as permitting processes and ultimately construction.

© 2022 Western Investor

Port Coquitam 5-acre industrial site sells for $10.6 million

Lee & Associates Ltd
Western Investor

Land is in the ‘Dominion Triangle’ industrial-commercial zone of the Tri-Cities and seen as ideal for industrial development

Property type: Industrial land

Location: 590 Dominion Avenue, Port Coquitlam, B.C.

Land size, in acres: 5 acres

Zoning: Industrial

Sale price: $10.6 million

Brokerage: Lee & Associates Ltd., Vancouver

Brokers: Sebastian Espinosa and Chris McIntyre

© 2022 Western Investor

RBC: Impact of BoC’s 50bp hike now starkly apparent in housing market

Ephraim Vecina
other

Some markets saw their most significant declines in activity in recent years

Current housing market trends indicate that the Bank of Canada’s rate tightening cycle is starting to have a significant impact, according to RBC Economics.

This was most apparent in sales activity, which has softened across the nation’s largest markets, particularly in Toronto (down 26% month over month in April). Similar trends have been observed in Calgary (down 22%) and Vancouver (down 17%).

“Apart from the early pandemic shock, Toronto’s decline in home sales was the sharpest single-month decline since the market correction in the late ‘80s,” wrote Carrie Freestone, an economist at the Royal Bank of Canada.

Home price growth in these markets is also slowing, with composite benchmark prices ticking up by just 1% month over month in Vancouver, and dropping by 1.6% in Toronto.

“A lower sales-to-new-listings ratio signifies a slowdown of the pandemic buying frenzy in Toronto, Montreal, and Calgary,” Freestone said.

Read more: Bank of Canada leaves door open for huge rate increase

“While we expect to continue to see prices trend higher, the pace of growth will slow, and we are already seeing this in Toronto and Vancouver,” Freestone added.

These developments might herald further signs of prices trending down in other major markets, the economist warned. However, this is not likely to become a reprieve for would-be buyers.

“Affordability issues will persist in Canada’s most-expensive markets as the burden of higher mortgage rates pushes many would-be buyers out of these markets,” Freestone said.

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Vancouver 11-unit multi-family sells at $518,818 per door

Colliers Canada
Western Investor

Property on a 5,495-square-foot corner lot in Fairview, close to future Broadway SkyTrain station, sold for $5.95 million.

Colliers Canada, Vancouver, for Western Investor
Property type: Multi-family rental
Location: 1015 West 13 Avenue, Vancouver.
Number of suites: 11
Land size: 5,495 square feet
Built: 1949 (“meticulously maintained”)
Price: $5.95 million
Brokerage: Colliers Canada, Vancouver
Brokers: Dan Chatfield and Simon Lim

© 2022 Western Investor

Penticton 2.1-acre site with potential sells for $9.95 million

HM Commercial
Western Investor

Okanagan city’s history, land is across from Skaha Lake with development potential, including multi-family.

HM Commercial, Kelowna, for Western Investor
Type of property: Land
Location: 3547 Skaha Lake Road, Penticton, B.C.
Size of land in acres: 2.12 acres
Price: $9.95 million
Buyer: Primex Investments, Vancouver.
Brokerage: HM Commercial, Kelowna, B.C.
Brokers: Jeff Hudson and Marshall McAnerney.

 © 2022 Western Investor