Covid-19 disrupt Vancouver condo owners

October 29th, 2020

Vancouver condo owners exposed in virus crisis: RBC

WI Staff
Western Investor

Declines in nationwide immigration flows and notable dips in local rental prices are among the top reasons Vancouver’s housing market is being upended amid the pandemic, according to a bleak new report from RBC Economics.

The condominium market is especially exposed, the report cautions.

“COVID-19 has severely disrupted the flow of immigrants moving to Canada — a major source of housing demand,” senior economist Robert Hogue stated in his October 29 report.

In the first quarter of 2020, migration to Canada had fallen slightly to 70,400 individuals compared with 82,900 the same period a year earlier.

But by the second quarter — stretching from April to June — migration had plummeted 94 per cent annually, from 152,500 to just 9,700 individuals.

B.C. immigration numbers went negative in the first half, according to BC Stats, falling 111 per cent from a year earlier.

“With the border poised to remain closed to all but essential travelers, and most post-secondary students continuing to study at home until immunization from COVID-19 reaches high levels in Canada and abroad – immigration is unlikely to rebound soon,” the report stated.

“To date, weak in-migration has had minimal impact on Canada’s overall housing market. But if sustained, we expect it will temper rental demand in larger markets as immigrants tend to rent in their first five to 10 years after landing into our country. This could have negative repercussions for condos and longer term, an extended period of weak in-migration could deplete future cohorts of first-time homebuyers.”

First-time homebuyers in Metro Vancouuver are more likely to buy a condominium apartment, than a townhouse or detached house, according to Canada Mortgage and Housing Corp. (CMHC).

A cooling rental market is also among the major changes COVID-19 has brought about to the Vancouver housing scene, according to RBC.

The bank, using data from Padmapper, determined the asking rent for one-bedroom apartment in Metro Vancouver has declined 7.3 per cent annually as of this October.

CMHC estimates there are 69,000 investor-owned condos that are in the rental market across Metro Vancouver.

“Renters tend to earn less than homeowners, and it’s been lower-income and younger Canadians who suffered the most job losses during the pandemic. Demand near post-secondary institutions has softened too, due to the switch to online study and the closing of our border that kept many foreign students abroad,” the report stated.

Rent in Victoria, meanwhile, has increased 13.8 per cent annually during that same period.

Hogue found that rental declines have been mostly concentrated in higher density, downtown locations.

“Underlying the shift is a surge in rental supply as the short-term rental business dries up and new purpose-built rental and condo units are completed,” Hogue stated.

Among other changes hitting the Vancouver housing market is the swelling supply of condos (up 20.9 per cent annually as of September) as investors look to sell.

“The sheer economic shock of COVID-19 — with unemployment soaring to unprecedented highs — directly impacted many Canadians and put many others on the defensive. Almost 780,000 people opted to defer mortgage payments since the start of the pandemic, representing 16 per cent of mortgages in bank portfolios. By the end of August, the vast majority of mortgage holders whose deferral period has expired had resumed regular payments,” the report stated. 

“However, it remains unclear how many will ultimately be able to continue as outlook for jobs remains bleak for many Canadians. This poses a risk for the housing market, especially in areas where the economy is shakiest.”

 

© Copyright 2020 Western Investor

Decrease home price, increase unemployment rate factors might to upset banks’ balance sheets ? analyst

October 29th, 2020

Falling home prices, unemployment to upset banks’ balance sheets ? analyst

Ephraim Vecina
Mortgage Broker News

With the looming threat of major home-price drops, a housing market correction accompanied by mounting unemployment will likely take a significant chunk off Canadian banks’ bottom lines, according to Barclays Plc. analyst John Aiken.

Moody’s Analytics said in mid-October that economic contraction and lower incomes stemming from the COVID-19 pandemic will trigger declines of 6.7% in single-family home prices and 6.5% in condo values.

The Canada Mortgage and Housing Corporation made a more troubling prediction of a 9-18% home-price drop this year.

In an interview with Bloomberg News, Aiken cited a CIBC report estimating that residential mortgages accounted for around 40% of loans at the Big Six banks. This translated to approximately $1.13 trillion in mortgages at the Big Six as of the end of July.

But with a troubling number of financially struggling Canadians unable to make any home purchases in the first place, the market’s prospects appear dim.

“Residential mortgages up to this point have been one of the strongest-growing asset classes, and it is the largest component of their books,” Aiken said. “So if that all goes to 0% growth, they are going to have a hard time trying to squeeze out growth from other areas.”

However, several observers have taken issue with the doom-saying surrounding Canadian home prices, and especially with the CMHC forecast.

“While I can appreciate some of the reasoning that went into CMHC’s prediction, especially in the spring when so much was still unknown, the market data doesn’t support such a steep price decline, especially with the two largest real estate markets of Toronto and Vancouver continuing their upward momentum,” said Christopher Alexander, executive vice president and regional director of RE/MAX Integra’s Ontario-Atlantic Region. “The Prairies are facing different circumstances and challenges due to the resources sector, but Ontario and BC are expected to offset slower activity in Saskatchewan and Alberta.”

Sherry Cooper, chief economist at Dominion Lending Centres, also deemed the CMHC predictions “overly pessimistic” considering that the national average home price saw a 1.5% increase as recently as August.  

 

Copyright © 2020 Key Media

Popolo: 81 European-inspired in the heart of Vancouver’s most accessible transit hub

October 29th, 2020

Popolo: European-Inspired Condos in the Heart of Commercial Drive

Michelle Hopkins
REW

Voyce a Luxury contemporary 6 story building in Westside Vancouver

October 29th, 2020

Voyce is Luxury Living Next to the Iconic Queen Elizabeth Park

Michelle Hopkins
The Vancouver Sun

It’s no secret, real estate in Vancouver’s Westside is rare and sought after. It is here, nestled in one of the city’s most historic neighbourhoods that Forefield Development Group introduces Voyce – a contemporary, six-story concrete building offering a sophisticated collection of 81 homes, from junior one-bedrooms to three-bedroom apartments, ranging from 447 to 1,111 square feet of beautifully appointed living.

 

From seascapes to skylines, many residences at Voyce will deliver sweeping views of the North Shore Mountains, the city skyline and Queen Elizabeth Park, home to a collection of public art in addition to its stunning greenery.

Designed by award-winning Trepp Design, these elegant residences offer a seamless blend of traditional and contemporary architecture. High-end European materials and finishes, nine-foot ceilings, elegant wide-plank engineered hardwood flooring, a Miele stainless steel appliance package and spacious balconies, decks and rooftop terraces provide an elegant, naturally inspired canvas for your own aesthetic and lifestyle.

 

“A concerted effort was made  during the creative process to avoid design trends and rather an approach of design classicism and longevity was implemented,” says Scott Trepp, Trepp Design principal.

Cam Good, President of Key Marketing went to say: “Many of these features and finishes would be considered upgrades in other properties, at Voyce they’re design standard. The home is designed to bring an attainable luxury experience with Italian kitchen, natural stones, German appliances, and more.”

 

This coveted neighbourhood is blessed with hip restaurants, trendy shops in Oakridge Centre and the historic, beautifully renovated one-screen cinema, the Park Theatre. It is also home to Women’s and Children’s Hospital. In the summer, residents and baseball fans head to Nat Bailey Stadium to catch the Vancouver Canadians in action, or to the Douglas Park Community Centre for a friendly game of tennis and a great workout.

Ideally situated, Voyce is in close proximity to major transit and SkyTrain hubs, and within walking distance to some of the West Side’s top-rated schools, including Eric Hamber Secondary, General Gordon Elementary, Sir Winston Churchill Secondary, as well as top-tiered private schools such as York House, Little Flower Academy and Vancouver College.

Forefield Development Group’s commitment is, and always will be, to bring thoughtful, urbane design to the cities and neighbourhoods where they build. At Voyce, it’s all about creating homes that don’t just look spectacular, they live well.

 

This is the last opportunity to live parkside, with a spectacular view of North Shore Mountains, in this highly desirable postal code on the highest point along the Cambie Corridor. 

“Voyce is the most successful pre-sale project in Vancouver in 2020,” says Good. “We sold 40 percent within two weeks after sales launch. And we have achieved our presale goal this month.”

With a Junior one-bedroom starting at $589,900, a two-bedroom starting at $1,039,900 and a regular two-bedroom + flex room starting at $1,269,900, Voyce is sure to sell out quickly.

Voyce’s Presentation Centre, located 4033 Cambie St., is open daily from noon to 5 p.m. (Closed Fridays). For more information or to register, call 604-875-1116, email at [email protected] or visit www.voyce.ca.

© 2020 REW

3 Storey rental apartment sold for $4.8 million, South Granville

October 29th, 2020

11-suite rental in South Granville sold for $4.8 million

WI Staff
Western Investor

Up-graded three-storey rental apartment building a block from South Granville in Vancouver, and near planned station for SkyTrain extension, sold for $436,000 per door.

Property type: Multi-family rental

Location: 1445 West 10th Avenue, Vancouver

Number of units: 11 (one bedrooms)

Number of storeys: 3

Land size: 6.250 square feet

Sale price: $4.8 million

Date of sale: September, 2020

Brokerage: CBRE, National Apartment Group, Vancouver

Brokers: Greg Ambrose, Lance Coulson and Kevin Murray

 

© Copyright 2020 Western Investor

6,137 square feet Mixed-use development site sold for $6.6 million in Dunbar Street Vancouver

October 29th, 2020

Vancouver 6,135-square-foot mixed-use site sells for $6.6 million

WI Staff
Western Investor

Canadian government releases more details regarding its five year Housing Supply Challenge

October 28th, 2020

Federal government releases more details of five-year housing initiative

Ephraim Vecina
Mortgage Broker News

Mixed used building near Kitsilano transit hub, Vancouver

October 28th, 2020

11-storey, mixed-use building proposed near future Kitsilano transit hub

James Bombales
Livabl

First glimpse of Concord Pacific’s proposed redevelopment plans of the Molson Coors brewery in Vancouver

October 28th, 2020

Renderings of the massive redevelopment of Vancouver’s Molson brewery

Kenneth Chan
other

Daily Hive Urbanized provided the first glimpse of Concord Pacific’s proposed redevelopment plans of the Molson Coors brewery in Vancouver in December 2019.

And now, additional details and renderings show the true breadth of the massive mixed-use redevelopment of the 7.6-acre industrial property, located at the south end of the Burrard Street Bridge.

 

The developer intends to build a redevelopment with a total floor area of 1.8 million sq ft, including 300,000 sq ft of office space with high ceilings, ground-level retail, restaurant, and showroom spaces, and 3,000 homes within towers between 15 and 25 storeys in height.

The towers are interconnected by a multi-storey podium and multi-storey rooftop sky bridge, but the redevelopment gains its name — Quantum Park — from its two large glass-covered atriums, which are inspired by the shape of wormholes in quantum theory.

Existing condition of the old Molson Coors brewery in Vancouver. (Google Maps)

 

Artistic rendering of Quantum Park, the redevelopment of the old Molson Coors brewery in Vancouver. (Concord Pacific)

This inspiration leads to the form and funnel design of the glass roof spanning between the podium structures, creating an expansive covered public space. The building fronting Burrard Street is organized around these covered atrium, while the overall complex revolves around a large central plaza.

 

The atriums also feature green walls, and the funnel-shaped glass roofs provide the natural ability to collect rainwater for reuse in landscaping irrigation.

 

Artistic rendering and cross-section of Quantum Park, the redevelopment of the old Molson Coors brewery in Vancouver. (Concord Pacific)

 

Artistic rendering of Quantum Park, the redevelopment of the old Molson Coors brewery in Vancouver. (Concord Pacific)

“The two atriums represent each end of a wormhole and are the focal point of the building, where natural forces bind with technological excellence,” reads a marketing brochure.

“Glass structures above are designed to harness natural light, rain and air, providing bright and stimulating multi-level workspaces within a natural environment.”

On the rooftops, Quantum Park will have a total of three acres of green roofs, making it the largest green roof of an office complex in Western Canada. Sphere-like glass pavilions on the roof provide an enhanced functional amenity space on the rooftop.

 

Artistic rendering of Quantum Park, the redevelopment of the old Molson Coors brewery in Vancouver. (Concord Pacific)

 

Artistic rendering of Quantum Park, the redevelopment of the old Molson Coors brewery in Vancouver. (Concord Pacific)

Other offerings include a health club, co-working spaces, electric-battery vehicle charging for all parking stalls, and an automated touch-less car washing facility.

“Building a successful and interactive community that fosters sustainable growth is at the core of Quantum Park. Both inclusive and vibrant, Quantum Park is a habitat for everyone to work and live organically,” reads a marketing brochure.

“The multi-use campus presents a community within a community: green space, offices, retail, health, fitness, and entertainment. Thoughtfully curated retail operators will complement the lifestyle of a modern-day professional. With amenities available on location and on-demand, the experience at Quantum Park will be of seamless convenience and aspirational living.”

The brochure notes the design takes cues from vibrant urban destinations such as Shibuya in Tokyo and Times Square in New York City. The redevelopment’s 700-ft-long podium facade along Burrard Street will have signage branding opportunities for the commercial tenants.

 

Artistic rendering of Quantum Park, the redevelopment of the old Molson Coors brewery in Vancouver. (Concord Pacific)

 

Artistic rendering of Quantum Park, the redevelopment of the old Molson Coors brewery in Vancouver. (Concord Pacific)

With all that said, it should be noted that this proposal is currently in its pre-application stage; no formal application has been submitted to the municipal government, and the site’s switch from traditional industrial to comprehensive, non-industrial uses also requires approval from Metro Vancouver Regional District.

The proposal’s significant office component is intended to substitute the loss of employment space from the existing industrial uses, although the former brewery only employed no more than up to 200 people over the past decade before its closure. In 2016, Concord Pacific acquired the property from Molson Coors, which recently completed a new and larger replacement plant serving the Western Canada market in Chilliwack.

 

Site plan of Quantum Park, the redevelopment of the old Molson Coors brewery in Vancouver. (Concord Pacific)

 

Site plan of Quantum Park, the redevelopment of the old Molson Coors brewery in Vancouver. (Concord Pacific)

This redevelopment concept was also created before the revelation and approval of Senakw, located immediately to the north, in late 2019. Nearly a year ago, members of the Squamish First Nation approved the redevelopment of their 11.7-acre Kitsilano reserve consisting of 6,000 homes within 11 towers up to 56 storeys in height.

Senakw and Quantum Park combined will create nearly five million sq. ft. of total floor area, 9,000 new homes for tens of thousands of residents, and office and retail space for thousands of jobs.

Quantum Park’s proposed floor space ratio (FSR) density is about 5.4 times the size of the brewery site, while Senakw’s FSR is approximately 6.0.

There is also an opportunity for Concord Pacific to refine its design to take Senakw’s form and public realm connectivity into account. As well, Senakw’s taller tower forms could create a view shadow for Quantum Park, potentially enabling the developer to consider higher buildings in its proposal.

This past summer, Concord Pacific acquired one of the last remaining large redevelopment sites within the downtown Vancouver peninsula — the 6.6-acre old St. Paul’s Hospital at 1081 Burrard Street. The hospital will relocate to a new facility in the False Creek Flats, and the mixed-use redevelopment of the old property will help fund the construction of the new healthcare campus. Concord Pacific acquired the hospital for about $1 billion.

In 2015, the developer acquired the six-acre Westin Bayshore Hotel in Coal Harbour for about $300 million. A mixed-use redevelopment of the hotel would entail luxury housing, a new upscale hotel, and a new and larger world-scale replacement facility for the Vancouver Maritime Museum.

 

Artistic rendering of Quantum Park, the redevelopment of the old Molson Coors brewery in Vancouver. (Concord Pacific)

 

Artistic rendering of Quantum Park, the redevelopment of the old Molson Coors brewery in Vancouver. (Concord Pacific)

 

Artistic rendering of Quantum Park, the redevelopment of the old Molson Coors brewery in Vancouver. (Concord Pacific)

 

Artistic rendering of Quantum Park, the redevelopment of the old Molson Coors brewery in Vancouver. (Concord Pacific)

 

Artistic rendering of Quantum Park, the redevelopment of the old Molson Coors brewery in Vancouver. (Concord Pacific)

 

Artistic rendering of Quantum Park, the redevelopment of the old Molson Coors brewery in Vancouver. (Concord Pacific)

 

Model of Concord Pacific’s highly preliminary design concept for the old Molson Coors brewery development in Vancouver. (Kenneth Chan/Daily Hive)

 

Model of Concord  Pacific’s highly preliminary design concept for the old Molson Coors brewery development in Vancouver. (Kenneth Chan/Daily Hive)

 

Model of Concord Pacific’s highly preliminary design concept for the old Molson Coors brewery development in Vancouver. (Kenneth Chan/Daily Hive)

 

Model of Concord Pacific’s highly preliminary design concept for the old Molson Coors brewery development in Vancouver. (Kenneth Chan / Daily Hive)

© Copyright 2020 Urbanized

Condo investor lost much of their down payments during Covid-19 pandemic – analysis

October 27th, 2020

Condo buyers lost much of their down payments during the pandemic ? analysis

Ephraim Vecina
Mortgage Broker News

On average, Canadian condo buyers have lost more than three-quarters of their own down payments over the course of the COVID-19 pandemic, according to an analysis of data from the Canadian Real Estate Association.

In its review of the CREA figures, real estate information portal Better Dwelling said that the average Canadian condo price fell by 0.1% from April.

After taking insurance into account, and assuming a 5% down payment, this translates to an average of 78% of a condo buyer’s down payment lost. As a disclaimer, Better Dwelling said that this calculation did not include any possible payments over the period due to the widespread loss of income nationwide.

Using the same calculation, Toronto was found to be especially worse off. Average condo price decline from April was at 1.86%, translating to a negative 111.2% return in equity. Even including payments over the period only leads to around 0.827% equity.

“This is one of those cases where owners made payments to get barely above water,” Better Dwelling said.

The analysis warned that these trends have troubling implications for those who are looking to downsize due to the cost of condo upkeep.

“Being too broke to sell is a real thing. Buyers only default if they can’t sell in a timely fashion, after a bout of shock,” Better Dwelling said. “Selling isn’t free; there [are] a lot of costs involved – including agent commissions. The higher the value of the mortgage, relative to the value of the home, odds increase the buyer will have to pay to sell. If they can’t afford to sell, the odds of seller default increases.”

 

Copyright © 2020 Key Media