Archive for May, 2015

Will housing market slow as Newfoundland and Labrador slips into recession?

Tuesday, May 12th, 2015

Jamie Henry
Other

A new report by BMO Nesbitt Burns suggests that Newfoundland and Labrador could slip into a shallow recession this year with Alberta on the borderline.

The outlook is for NL to see negative growth of 0.5 per cent as the province suffers from the weakened oil industry.

Alberta is expected to be flat at best, but could also tip slightly into negative growth, while Saskatchewan is likely to slow to one per cent growth.

Overall though, the outlook for the Canadian economy is more positive with the report suggesting two per cent growth this year and possibly higher in 2016 as oil prices have recovered from the lowest points of the slump.

The report does not specifically suggest a slowdown in the housing markets in the three oil-producing provinces, although consumer sentiment has already affected sales and prices to some extent and is likely to be compounded by the predicted weakening of growth. 

Copyright © 2015 Key Media Pty Ltd

Why the North Shore is Heating Up

Monday, May 11th, 2015

Bisnow
Other

Commercial real estate deals on the North Shore generated $173M last year, the second-highest dollar volume on record, with just three transactions surpassing $10M. There’s “virtually no land available” for commercial projects, says Terry, so builders are forced to assemble sites for redevelopment. Onni Group pieced together land for CentreView, North Vancouver’s largest mixed-use development. The project (to the right) in Central Lonsdale will include two condo towers, an 80k SF office building and 90k SF of retail, with a Whole Foods replacing the Safeway.

Elsewhere on the North Shore, Polygon is demolishing Esplanade Centre to build West Quay (to the right), a project that will include 200-plus residential units and 40k SF of strata commercial space. And Concert Properties is working on Harbourside, a mixed-use waterfront community that Terry notes was spurred by North Vancouver’s move to up-zone light industrial properties, which permits mixed-use projects with commercial/retail space at grade, office on upper floors, and residential above. It’s made stand-alone assets on the North Shore “highly prized.

The North Shore has significant activity from private real estate investors, too, Terry points out; high-net-worth individuals who reside in the area and like to “play a little bit in the commercial real estate market.” Especially hot right now are East and West Esplanade, Edgemont Village and the Lower Lynn/Dollarton corridor. North Shore holdings tend to be smaller-scale, Terry notes, and private investors are partial to purchasing strata product or stand-alone retail properties that, in light of zoning changes, are now ripe for redevelopment.

© Copyright 2015 Bisnow

10 Signs That You Might Be A Real Estate Agent

Friday, May 8th, 2015

Other

Building permits value up 11.6 per cent in March

Friday, May 8th, 2015

Jamie Henry
Other

There was an 11.6 per cent increase in the value of building permits in March compared to the month before. New data from StatsCan shows that the total value of permits increased to $6.9 billion, the first increase in three months. British Columbia, Alberta, Quebec and Saskatchewan registered noticeable advances in the non-residential sector in March. Ontario and Newfoundland and Labrador were the two provinces to register declines in the sector.

In the residential sector, the value of permits rose 6.6 per cent from February to $4.4 billion in March. Gains in Ontario and British Columbia offset decreases in five provinces, with Quebec and Alberta registering the largest declines. The value of permits issued for multi-family dwellings rose 19.6 per cent to $2.1 billion in March, marking the second consecutive monthly gain. The increase was attributable to higher construction intentions in four provinces, led by Ontario and British Columbia. The largest declines were recorded in Quebec and Nova Scotia. The value of single-family dwelling permits fell for a second consecutive month, down 3.4 per cent to $2.3 billion in March. Gains in five provinces, led by Ontario and Quebec, were not sufficiently large to offset the declines in the remaining provinces, with Alberta registering the largest drop.

Copyright © 2015 Key Media Pty Ltd

Real Estate Board of Greater Vancouver Stats for April 2015

Thursday, May 7th, 2015

Other

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Vancouver’s Residential Construction Permits Up 97% in March: StatCan

Thursday, May 7th, 2015

Joannah Connolly
Other

The value of Vancouver’s residential building permits in March was nearly double that of the same month last year, according to Statistics Canada data released May 7.

Residential permits in the city totalled $979 million in March, up 97.2 per cent compared with March 2014, and a rise of 52.1 per cent compared with the previous month.

Of the three other BC municipalities surveyed, Kelowna was the only one to see a similar increase to Vancouver, with residential permit values rising to $62.4 million in March. This is an 84.2 per cent increase over March 2014 and a month-over-month leap of 153 per cent.

Abbotsford-Mission and Victoria both saw declines in the value of residential construction permits, down 12.4 and 4 per cent respectively compared with March 2014.

Across Canada, the value of residential construction permits rose 18.8 per cent year over year and 6.6 per cent month over month to $4.4 billion in March.

To read the full Statistics Canada report and interactive charts, click here.

© 2015 Real Estate Weekly

Canadian Building Permits rose 12 per cent

Thursday, May 7th, 2015

Other

The total value of Canadian building permits rose close to 12 per cent on a monthly basis in March, led by higher construction intentions in the non-residential sector in BC and Alberta as well as higher permits for multi-family dwellings in BC and Ontario. 

The value of building permits issued in BC rose for a second consecutive month, climbing 52.6 per cent on a monthly basis and 63.5 per cent year-over-year. Non-residential permits in BC more than doubled on a monthly basis in March due in large part to a surge of commercial permits in the Vancouver CMA. The value of permits in the residential sector increased 28.7 per cent in March on a monthly basis and were 68.5 per cent higher year-over-year.  Residential permits were led by an 11 year high in permits for multi-family units.

Construction intentions were up in all four of BC’s census metropolitan areas (CMA). Permits in the Abbotsford-Mission CMA increased 52.1 per cent on a monthly basis but were 12.4 per cent lower year-over-year. In the Kelowna CMA, permits jumped 153 per cent from February and were 84.2 per cent higher year-over-year. In the Victoria CMA, permit activity was up 31.8 per cent on a monthly basis but was 4 per cent lower year-over-year. In the Vancouver CMA, permits increased for a second month in a row, rising 59.5 cent on a monthly basis and 97.2 per cent year-over-year

Copyright ©2015 BCREA – British Columbia Real Estate Association.

Vancouver housing activist slams condo project at 1171 Jervis for having one entrance for the condo owners and one entrance for the Social Housing Unit renters #LesTwarog

Wednesday, May 6th, 2015

Naoibh O’Connor
Van. Courier

A May 4th tweet under the @CityHallWchVan handle created a firestorm this week by calling attention to a new West End condominium project that features a separate door for the social housing units — a so-called “poor door.”

Later that day, the Development Permit Board approved the 19-storey condominium project at 1177 Jervis St. (now 1171 Jervis), which will feature 62 market residential units, 27 social housing units and commercial space at ground level.

But the debate about the doors hasn’t stopped even though Brian Jackson, the city’s head planner, told the Courier Tuesday that no one spoke against the project at the DPB meeting Monday, and no one brought up the “poor door.” One person spoke in favour of the project.

So-called poor doors have been controversial in New York City. Critics panned a new tower that included different entrances for condo owners and low-income tenants, although ultimately 88,000 people applied for the 55 low-priced units, according to the New York Times.

Jackson said in the Jervis Street case the door to the social housing is more prominent than the door to the condo.

“It’s ironic in this particular instance because the front door for the social housing is on Davie Street. The front door for the condo is on a side street. So it’s actually the condo that has the poor door,” he said. “The developer did not hide the door, it’s not off a lane or anything. It’s actually on the main street.”

When asked if separate entrances are typical, Jackson said: “I’ve seen it done both ways. In these types of projects where we’re asking for [social housing] to be included in the condominium development, the developers are telling us, for marketing purposes, they would prefer that. But we will not accept an entrance off of a lane. We will not accept an entrance that is not equally prominent as the other door.”

Jackson added that the social housing on the site will be owned by the city, so it’s a separate air space parcel.

“So a lot of it has to do with the design of the building itself in terms of where the door is and whether they can be combined. It is difficult when the city is going to have ownership of a parcel for the entrances to be combined because of the legality of the separate legal lot that exists for the city social housing,” he said. “It’s difficult but you can have easements over each other’s lots to have a shared entrance but it becomes problematic.”

Separate doors for social housing is not a new concept in Vancouver. Long-time housing activist Jean Swanson calls the idea “elitist.”

“It shows a kind of hypocrisy because people use the rhetoric around social mix to justify gentrifying poor neighbourhoods like the Downtown Eastside and then when they actually put in the buildings like Woodward’s, which are ostensibly socially mixed, they have a poor door and a rich door, and they have a poor amenity and then they have a rich amenity with the W-shaped hot tub,” she said. “So it’s a class thing. It shows how divided our society is by class. And it shows how hypocritical the concept of social mix is because there is no mixing.”

Swanson argues that if separate doors weren’t permitted, it would reflect a more equal society. She said the idea developers can market a project more easily if there are separate doors reveals the prejudice that exists against low-income people.

“It would be way better if that prejudice didn’t exist and if developers didn’t pander to it,” she said. “If the powers that be — the developers, the city, whatever — wanted to challenge the stereotyping and discrimination against renters and low-income people, they could think of a way to do it.”

Randy Helten, who shares the CityHallWatch twitter handle with other activists, said Wednesday he didn’t personally post the tweet, but he’s done about 10 interviews about the subject over the past 24 hours.

“I think this means that our society believes in the importance of equality and the image of having separate doors based on your level of affluence is unacceptable to a large number of people,” he said. “The term [poor door] triggered the outrage.”

Even though separate entrances are not new, he said one of the problems is the public doesn’t know how prevalent they are since only a couple of examples such as the Woodward’s building have been brought forward and the city has said it’s not keeping track.

“I think the majority of the public has no idea that there are segregated doors,” said Helten who added he doesn’t like the term ‘poor door.’ “I know of other fresh projects in which there are affordable income rentals and luxury condos and they use the same lobby and elevator.”

He cited the Alexandra building at Bidwell and Davie, which was completed about two years ago.

“So contrary to what some of the experts have been saying — that this is the norm — I don’t think anyone has proven that it is the norm yet.”

Helten maintains the issue needs to be discussed given the growing disparity between the rich and the poor around the world and, as house prices continue to skyrocket in Vancouver, the separation of entrances may become more prevalent.

“We’re talking about the physical infrastructure of our society. A tower that’s going up now will probably be standing for four generations or more and we’re building into our architecture a distinction of people in the same building based on their economic status,” he said.

© 2015 Vancouver Courier

Vancouver needs to get tough on house prices says professor

Wednesday, May 6th, 2015

Jamie Henry
Other

An academic says that there needs to be tougher regulation on housing in Vancouver to curb rising prices.

Professor David Ley of the University of B.C. says that Vancouver is “out of phase” with other large cities around the world that are subject to high levels of foreign investment.

The Vancouver Sun highlights that Hong Kong, Singapore and London have all acted to make property less affordable for foreign investors, and Australia is threatening jail for those who breach foreign ownership regulations.

Vancouver, meanwhile, is focusing on the effect of empty homes on the city’s prices. Professor Ley told the newspaper that we need to know the level of foreign ownership but that is a sensitive subject with claims of xenophobia when it’s mentioned.

He believes that foreign investors will buy more Vancouver homes, and that the provincial and federal governments will be reluctant to curb inward investment. 

Copyright © 2015 Key Media Pty Ltd

Ontario housing market 25% overvalued

Wednesday, May 6th, 2015

Jennifer Paterson
Other

It’s been said before, but it seems the chorus is contagious – yet another report is calling the Ontario housing market overvalued.

The Fitch Ratings report argues the province’s home prices are approximately 25 per cent overvalued, following an analysis between home prices and fundamental economic factors such as income, unemployment and mortgage rates.

It’s important to note that despite this proclamation – part of a report released Tuesday – the rating agency does not expect prices to fall, due to a number of positive factors, including limited risk in outstanding mortgage products.

“Nonetheless, elevated price risk poses concerns, especially with a significant amount of inventory poised to hit the market,” stated the report.

“As a large number of units come on line, prices may soften, which could reverberate throughout the Canadian economy.

Lower prices would reduce the incentives to build further units, which could hit employment in the construction sector that has been buoyed by continuing price growth. This in turn could lead to more significant downside exposure.”

Since 2009, home prices in Ontario have grown at an annualized rate of 7.6 per cent, according to the report. It also pointed out that more than 80,000 new multi-family units are under construction in the province – a record high and nearly 50 per cent than four years ago.

“Amid this unprecedented increase in large developments, construction timelines are being extended, with completions lagging behind housing starts,” continued the report.

“With price levels relatively flat over the last six months, the significant boost to supply implied by this construction overhang could present a problem for continued price growth, with the market potentially becoming oversaturated.”

Copyright © 2015 Key Media Pty Ltd