The Wex: At the heart of one of Langley?s most desirable destinations

Robin Brunet
The Province

Increasingly, The Wex from RDG Management is being recognized as providing THE Willoughby EXperience, a reference to the Langley neighbourhood in which the 94-unit condominium development is located.

And for good reason: with a bracing mix of new and established business and retail, residential and recreational opportunities, Willoughby has become one of Langley’s more desirable destinations for professionals and young families.

Consider: The Wex residents have easy access to the sprawling indoor shopping mecca of Willowbrook Mall, the nearby Colossus movie theatres, the heritage and boutique stores of Fort Langley, and the numerous wineries, breweries (including Trading Post Brewing) and walking/riding trails throughout the Fraser Valley, all framed by snow-capped mountains on the horizon.

The Wex itself is located smack in the middle of the new Willoughby Town Centre, which contains high-end pizzeria and coffee shops, brand names such as No Frills Grocer and Shoppers Drug Mart Boutique, Spa & Nail Bar – with more businesses and services soon to come.

In short, THE Willoughby EXperience means being at the centre of it all – which is why demand for The Wex’s urban condos have been so strong. But even though the one-, two-bed/two-bath plan has already sold out, Melanie Themmen, sales manager with Fifth Avenue Real Estate Marketing Ltd., says: “We still have some great homes available, many of them on the top floor.”

Themmen adds that the best way to experience everything The Wex and Willoughby Town Centre have to offer is to attend a block party Fifth Avenue is staging on Sunday, March 26 from 1 p.m. to 5 p.m. “We’re going to have live entertainment, beer tasting, and lots of food and snacks from local vendors,” she says. “It’s our way of showing that first-time buyers all the way to downsizers can still be part of this unique lifestyle development.”

Guests will also see first-hand the attention to detail that is going into the creation of this five-storey complex, starting with its West Coast-style spanning overhangs, oversized windows, glass balconies and stone-accented siding. The one-bedroom condos right up to the two-bedroom-with-flex homes have nine-foot ceilings, solid-core Cambridge entry doors, floor-to-ceiling cabinets in shaker or high-gloss panel style, main baths with square-edge cabinets and quartz countertops, and master bedrooms with walk-in closets and spa-like ensuites.

Even more remarkable is the price: an 858-square-foot two-bedroom, one- bathroom with a top-floor view is available for only $344,900, while a top- floor two-bed/two-bath-and-flex is going from just $364,900.

This may be the final chance to live THE Willoughby EXperience in a quality designer condo built by RDG Development by getting in at The Wex. “So to all prospective buyers, please RSVP us – and join the party,” says Themmen.

© 2017 Postmedia Network Inc.

Gramercy?s The Crossing proving to resonate with homebuyers

Robin Brunet
The Province

With only 13 homes remaining, The Crossing by Gramercy has attracted buyers from all over Metro Vancouver. And even though its appeal is manifold, families moving east from areas such as Kitsilano have been especially vocal in praising The Crossing’s unique location and benefits.

The 67 townhomes in South Surrey are situated in a cosy nook of dense woodland, quiet streets and estate homes. This small region, steeped in agricultural tradition, is known as Pacific Douglas. This location has an iconoclastic vibe that comes from residents knowing they’re in a magical place, where children can play freely and curfews have been replaced by the setting sun.

Like Kitsilano residents, The Crossing homeowners are close to the beach: the sandy shores of White Rock. There’s also easy access to shops in the form of eclectic hot spots along the waterfront, big-box retail in Grandview, boutique stores in Morgan Crossing, a variety of restaurants (including My Shanti by renowned chef Vikram Vij), and services.

Pacific Douglas is a golfer’s paradise, flanking the Peace Portal Golf Club and the Hazelmere Golf and Tennis Club, just a few minutes away. In fact, the final 13 homes at The Crossing – all of them four bedrooms – are street-facing on a peaceful cul-de-sac near the golfing green.

As for the homes themselves, the exteriors are classic East Coast with wood shutters on the windows and arched portico entries. The interiors are characterized by open living spaces and elegant touches in the kitchens and bathrooms, such as high-arc faucets, classic subway tile backsplashes and deep soaker tubs.

There’s much more: shaker-panel cabinetry, soft-close doors and drawers, oversized porcelain tile flooring. As a company that strives to provide homeowner convenience, Gramercy also offers 12 months of free TELUS high-speed Internet 15 with wireless router and modem, as well as 12 months of free TELUS Optik TVs Essentials package, a choice of two theme packs and PVR.

Neighbourhoods that are truly iconoclastic are becoming increasingly rare as Metro Vancouver’s population steadily increases, and normally, living in such a location comes at a price. Fortunately, that price is a nice surprise: the four-bedroom homes — each with three full bathrooms and powder room — start at $689,900 for 1,736 square feet and rise to 1,948 square feet.

The only limiting aspect of The Crossing is the window of opportunity for people curious about living in this neck of the woods. Once the remaining townhomes are sold, there aren’t any other new townhome communities in Pacific Douglas to choose from.

Therefore, the time to act is now. For more information about the Crossing’s final release of homes, contact [email protected] or call 604-542-2883.

© 2017 Postmedia Network Inc.

The Smithe has Space rich with eye-catching details

Mary Frances Hill
The Province

The Smithe

What:  23 storeys of residential space comprising 94 two-and three-bedroom homes, built on a sloped 15,000-square-foot site at Smithe and Cambie streets

Where: 885 Cambie Street, Vancouver

Residence sizes and prices: 1,000 – 1,429 square feet (not including penthouses), from $1.2 million

Developer and builder: Boffo Developments

Sales centre address: 1035 Seymour Street, Vancouver

Sales centre hours: noon — 6 p.m., daily

At the display space for The Smithe, Boffo Developments’ planned community of condominiums in downtown Vancouver, designer Scott Trepp responds to the tower’s architecture from the inside out — by embracing the potential of a bright space, bringing beauty to the smallest details and creating a centrepiece in the display space.

GBL Architects designed the building so each unit gets the most access to natural light as possible, thanks to view exposure.

At The Smithe, Boffo takes advantage of the tower’s architectural design to embrace that light with expansive windows and lofty ceilings.

“In Vancouver, it seems we are always eager to maximize light,” says Trepp, principal of Trepp Design Inc.

Boffo sales manager Karen West says the details in the décor get visitors talking, particularly with admiration of individual pieces such as the faceted mirror and a marble-topped dresser in the master bedroom, as well as the oval table in the dining room.

Indeed, Trepp and his team turn the living room and dining room open-concept area into the visual highlight of the display space, with that table, an Eero Saarinen classic, in the centre.
“Situated between the formal living room and the more leisurely family room, the table (along with the modern take on a chandelier) it anchors the space and creates a focal point,” Trepp says. Its form makes it easy for homeowners and guests to circulate between the eating and main living area and encourages socialization at meals.

Trepp’s team turned to Inform Interiors for the metal frame chandelier, a modern spin on a classic, made by Luceplan.

In a master bedroom suite, Trepp Design Inc. has installed a panelled wall treatment that envelops the room in warmth. The specialty product, made by wallcovering specialist Maya Romanoff, adds an uncommon artistry to the room.

“Unlike most wallpapers that are typically meant to provide an overall pattern, this finish is designed to provide a more panelled effect. To this end, we elected to use it on all of the walls of the bedroom, rather than on a single feature wall. The result is less graphic, more ethereal and very painterly.”

The texture and warmth continues with the living room’s white-tufted sectional, and an upholstered ottoman in place of a coffee table. “Given that the family room at the Smithe is a direct extension of the main living spaces, we elected to keep it as sophisticated, light and luxurious as the adjacent dining and living rooms.  However, by selecting more casual furnishings… the room blends the best of both form and function.”

In the living room, a big, bold photograph of Paris’ Champs-Elysées provides an eye-catching focal point. “[It] anchors one extremity of the open living, dining and kitchen areas,” Trepp says. “It adds a real sense of personality to the suite.”

© 2017 Postmedia Network Inc

ALEXANDRA POSADZKI
The Vancouver Sun

Recent government regulations have created “unprecedented levels of uncertainty” for the high-end home market heading into the key spring buying season, Sotheby’s International Realty Canada said in a report released Wednesday.

Data compiled by the realtor in Canada’s four largest real estate markets predicts little deviation from ongoing trends.

Toronto is expected to continue to lead the pack in sales of homes worth over $1 million, while Vancouver’s high-end home sales will continue to normalize. Calgary’s market is forecast to continue its cautious recovery from the oil price shock and sales in Montreal are anticipated to grow modestly, according to the report.

But recent policy changes from federal, provincial and municipal governments remain “wild cards,” said Brad Henderson, president and CEO of Sotheby’s International Realty Canada.

Last fall, Ottawa introduced new rules requiring all insured mortgages to undergo stress testing to determine if borrowers would still be able to meet their mortgage obligations if interest rates climb or if their incomes decline. Such tests previously were not needed for fixed-rate mortgages longer than five years. Also last year, the B.C. government introduced a 15 per cent tax on foreign buyers of Vancouver homes and the city imposed a tax on vacant homes.

“We are forecasting that we are going to continue to see the market adjust to this new reality,” Henderson said of Vancouver.

Sales of homes for over $1 million in Vancouver fell to 209 units in January and February of this year, down 27 per cent from a year ago, Sotheby’s said.

The luxury segment of the Vancouver market — homes worth over $4 million — was even more dramatically affected, plunging 46 per cent from a year ago to seven units, according to the report.

Many owners of top-tier Vancouver homes who were planning to sell are now sitting on the sidelines, Henderson said. “The individuals involved have less pressure to sell the properties, so they can afford to take a wait-and-see attitude,” Henderson said. “Arguably some of those properties would be the target of foreign buyers.”

In Ontario, the provincial government has begun to mull increased regulations to temper house price growth, with Finance Minister Charles Sousa floating several ideas in recent weeks, including a foreign buyer tax and an increase in capital gains tax aimed at curbing speculation.

Sales of homes worth over $1 million were up by 87 per cent across the Greater Toronto region to 3,043 units in the first two months of the year compared to the same period last year, Sotheby’s said. In Toronto proper, sales of $1 millionplus homes rose 44 per cent yearover-year to 943 units, while sales of homes worth over $4 million were up 147 per cent from a year ago to 42 properties.

Henderson predicts that strength will continue in the spring buying season — provided that the government doesn’t implement new policies aimed at the real estate sector. “We feel that the market is the best arbiter of supply and demand, and that government policies often have too many unintended consequences. They need to be done thoughtfully, not as a reaction to what has really become a very political issue.”

© 2017 Postmedia Network Inc.

Jordan Press
REP

Cities and affordable housing providers will find themselves with $11.2 billion more to spend on new and existing units over the coming decade, as part of the federal government’s multi-pronged push to help people find homes.

Of that money, which comes from the government’s social infrastructure fund, $5 billion will be allotted to encourage housing providers to pool resources with private partners and to allow the Canada Mortgage and Housing Corp., to provide more direct loans to cities.

The funding falls short of the $12.6 billion the mayors of Canada’s biggest cities requested last year and Wednesday’s federal budget shows that the majority of the $11.2 billion isn’t slated to be spent until after 2022.

Over the next 11 years, the Liberals pledged $202 million to free up more federal land for affordable housing projects, $300 million for housing in the North and $225 million to support programs that provide units to indigenous peoples off reserve.

The money, coupled with $2.1 billion for homelessness initiatives over the next 11 years, sets the financial backbone for the Liberals’ promised national housing strategy that will be released in the coming months. The document will outline how the government plans to help people find affordable housing that meets their needs, and ensure a robust emergency shelter and transitional housing system for those who need it.

Finance Minister Bill Morneau told reporters the spending will make a difference for those who rely on social housing. He said the Liberals want to ensure cities can access funds as quickly as possible to make necessary investments in the country’s stock of aging affordable housing.

The details are among many laid out in the budget, which outlines how the government plans to spend the $81 billion it is making available between now and 2028 to address future infrastructure needs and, the government hopes, boost the economy to create new jobs and government revenues.

It also gives $39.9 million over five years for Statistics Canada to create a national database of every property in Canada. This will include up-to-date information on sales, the degree of foreign ownership and homeowner demographics and finances to answer lingering questions about the skyrocketing cost of housing that may squeeze middle-class buyers out of the market.

The Liberals clearly see a need to attract private investors to help pay for infrastructure projects, including affordable housing, given the federal government’s tight fiscal position.

At the centre of that push is a proposed new infrastructure bank that would use public dollars to leverage private investment in three key areas: trade corridors, green infrastructure and public transit.

The government is setting aside $15 billion in cash for the bank, split evenly between each of the aforementioned funding streams, with spending set to start as early as the next fiscal year on projects based on budget projections.

Morneau said that the government wants to have the bank up and running this year, including having some projects that will be identified for investors.

But the budget document again projects that the majority of the bank’s spending won’t happen until after 2022. And in the case of trade corridor infrastructure, spending isn’t expected to start until 2020, even though some experts argue this stream would give the country the biggest economic bump.

The Liberals are also tweaking how much of the bill it will cover for municipal projects under the second phase of its infrastructure plan in order to nudge provinces to pony up more money for work and to prod cities to consider using the bank for projects that could generate revenue, like transit systems.

The government will cover up to 40 per cent of municipal projects under the upcoming phase of its infrastructure plan, 50 per cent for provincial projects and 75 per cent for indigenous projects.

Copyright © 2017 Key Media Pty Ltd

Trump Tower developer facing lawsuit

Sam Cooper
The Province

A Richmond construction company has sued the developer of Trump International Tower and Hotel, seeking almost $800,000 in alleged unpaid fees.

Last week in B.C. Supreme Court, Urban One Construction Management filed a civil claim against developer Holborn Group and related property holding company West Georgia, both of which are directed by Joo Kim Tiah, the son of Malaysian tycoon Tony Tiah.

Urban One’s action also names as defendants a number of condo owners in the glitzy Vancouver tower.

Urban One’s claim says that following completion of the project, Holborn has failed to pay Urban One “money due and owing in the amount of $765,632.”

Urban One is seeking a declaration of a builders lien in the amount of $835,059 against the Trump Tower property, and also the property of strata unit purchasers named in the suit.

The main payment allegedly outstanding — according to Urban One’s claim — is a $525,000 construction completion hold back that was due in mid-March.

Before Urban One’s claim, Holborn Developments (West Georgia) Ltd. had filed a notice of civil claim on Jan. 17 in B.C. Supreme Court with a list of more than 25 complaints about Urban One.

Holborn alleged that Urban One failed to establish a project schedule and properly supervise trade contractors. The claim said Urban One allowed sub-par work to pass, did not inspect appliances to make sure they were in good condition and misled Holborn about possible schedule delays.

But Urban One’s separate claim alleges that Holborn commenced legal action in January, “with the stated intention of retaliating against Urban One for Urban One (filing) a builders lien to secure payment.”

Urban One’s claim alleges that construction progress on the Holborn development was disrupted by “bullying and harassment.

“Holborn directed or knowingly acquiesced in a persistent and unjustified campaign of bullying and harassment of Urban One and its personnel by Holborn’s agent … which significantly disrupted Urban One’s orderly performance of the services,” the claim alleges.

Urban One alleges that in “breach” of their agreement, Holborn failed to pay contractors according to the terms of a construction contract and make timely decisions, so that “Urban One incurred significant delay and additional costs in performing the services.”

“Urban One has never previously filed a lawsuit against anyone,” Urban One’s management said in an emailed statement about the civil claim.

“Unfortunately, in this exceptional circumstance, litigation is our only option … With regard to a separate notice of civil claim filed in January by Holborn, Urban One notes that Holborn has not proceeded with service of that claim on Urban One … In the event that Urban One is served, we will vigorously defend the legal action and our reputation in court.”

Holborn CEO Joo Kim Tiah did not immediately respond to a request for comment on this story.

None of the allegations in either legal claim has been proven in court.

Urban One’s claim against Holborn provides information on the background of some of the local and offshore investors named as defendants in the court action.

According to information from land title records cited in Urban One’s claim, condo investors declared occupations ranging from student to housewife to self-employed, to in one case, the senior national director of the National Bank of Abu Dhabi.

These condo owners have been named in the civil claim because Urban One is seeking to place a builders lien on the “purchase price holdbacks which were retained or should have been retained by the purchasers under their respective contracts.”

© 2017 Postmedia Network Inc.

Important changes to Small Claims Court

other

Changes to BC law announced today will make important changes to the work the Provincial Court does under the Small Claims Act. Starting June 1, 2017, with just a few exceptions civil claims of up to $5000 will no longer be dealt with in the Provincial Court’s “Small Claims Court” – instead, they will be resolved in BC’s new online Civil Resolution Tribunal. At the same time, the upper limit of civil cases heard in Provincial Court will increase to $35,000.

This eNews will provide more details of these changes, and what they will mean for people with civil disputes in British Columbia. 

What is Small Claims Court?
“Small Claims Court” is a term used sometimes to describe the civil law work the Provincial Court does under BC’s Small Claims Act, just as “Family Court” is sometimes used to describe its work under BC’s family law statutes. These days, “small claims” is really an inaccurate term, because the claims brought to Provincial Court aren’t small – they’re important to the parties and can involve significant dollar amounts.

What is the Civil Resolution Tribunal and what will it do?
Starting June 1, 2017, people with disputes involving up to $5000 must generally try to resolve them in the Civil Resolution Tribunal (CRT) rather than in the Provincial Court.

The CRT is an online tribunal that will offer dispute resolution services you can use from your home, or anywhere with access to the internet, in three phases:

1. Negotiation – first you communicate online with the other party to see if you can quickly settle the dispute between yourselves.
2. Facilitation – if that doesn’t work, trained CRT staff will try to help you settle.
3. Adjudication – if you can’t resolve the dispute, a Tribunal member may make a decision that can be enforced like a court order in Provincial Court, unless you or the other party files a notice of objection.

What if I have a claim of $5000 or less that has already been filed in Provincial Court?
The Provincial Court will continue to deal with all cases of up to $5000 that have been filed before June 1, 2017.

After June 1, will the Provincial Court have any role in claims of $5000 or less?
The Provincial Court will still deal with these cases in four circumstances:

• when the CRT does not have legal authority to deal with the subject matter of a claim
• when a judge orders that a matter proceed in Provincial Court instead of the CRT
• where one of the parties files a notice of objection to a CRT decision
• where no objection to a CRT order is filed, and a party asks to have the order enforced in Provincial Court.

What matters can the CRT resolve?
The issues within the authority of the CRT are:

• debt or damages
• recovery of personal property
• opposing claims to personal property
• demanding performance of an agreement about personal property or services.

but not:

• a claim for libel, slander or malicious prosecution
• a claim for or against the government
• a claim excluded from the authority of the CRT by regulations (there are no such exclusions now)
• a constitutional question (any question requiring notice under section 8 of the Constitutional Question Act)
• a question of whether there is a conflict between the Human Rights Code and another law.

Under section 11 of the Civil Resolution Tribunal Act, the CRT can refuse to deal with a claim for several reasons, including:

• the claim does not involve an issue or a money amount within its jurisdiction
• the issues raised in the claim are too complex or otherwise impractical for its process.

Why would a judge order that the CRT not deal with a matter?
If a person applies to Provincial Court to be exempted from the CRT, a judge may order that it not facilitate settlement of a claim or adjudicate it if:

• the CRT does not have the legal authority to hear the claim
• it is not in the interests of justice and fairness for the CRT to hear it.

Sections 12.1 and 12.2 of the Civil Resolution Tribunal Act set out factors a judge may consider in making this decision.

What if I’m not satisfied with a CRT adjudicator’s decision?
For 28 days after they receive notice of a CRT final decision, a dissatisfied party can file a Notice of Objection with the CRT. This will make the CRT decision unenforceable. They can then file their claim or counterclaim in Provincial Court and proceed to a trial before a Provincial Court judge.

If the parties took part in facilitated dispute resolution at the CRT, their first Court appearance will be a trial conference to discuss preparation for trial. If they did not participate in dispute resolution, they will be given a date for a settlement conference.

Won’t everyone the CRT orders to pay just file an objection?
The CRT Act contains provisions to discourage people from filing a Notice of Objection without good reason.

First, a judge may order the objecting party to deposit money, up to the amount of the award, plus security for costs. And if the defendant at the CRT failed to file a response and then filed a Notice of Objection, in most cases the judge must make an order for payment of a deposit and/or security for costs, if the other party requests it.

Moreover, if the objecting party wins less at trial than at the CRT, the judge may order them to pay a penalty of up to 20% of the CRT award. It is only at this point, after making a decision, that the judge hearing a trial will see the CRT decision.

See section 56.3 of the Civil Resolution Tribunal Act and Rule 10.2 of the Small Claims Rules.

How can CRT orders be enforced?
Both negotiated consent orders and final decisions of the CRT can be filed in the Provincial Court for enforcement. (A final decision can only be filed after 28 days have passed without a Notice of Objection being filed.) Once a CRT order is filed with the Court, it has the same force and effect as a Provincial Court judgment, and can be enforced using the same procedures (section 58.1 of the Civil Resolution Tribunal Act). The Court currently deals with enforcement of Residential Tenancy Branch orders in a similar way.

Will there be other changes to Small Claims procedure in Provincial Court?
In Provincial Court in Vancouver and Richmond, Justice of the Peace Adjudicators will hold one-hour simplified trials for cases with a money value of $5001 to $10,000. In a simplified trial you or your lawyer state the facts, file any documents you rely on, and respond to the other party. The Justice of the Peace Adjudicator may ask you questions, ask you to swear to the truth of your statement, permit witnesses, and allow you or your lawyer to ask the other party questions. The Justice of the Peace Adjudicator provides their decision immediately or within 30 days.

What if I have a claim for $25,000 to $35,000 that has already been filed in the BC Supreme Court?
Your case will proceed in the Supreme Court unless one of the parties applies to a Supreme Court judge or master to transfer it to Provincial Court. The law about transferring cases, found in section 15 of the BC Supreme Court Act, has not changed.

What if I have filed a claim or counterclaim for $25,000 in Provincial Court before June 1 and want to increase it to $35,000?
Starting June 1, you will be able to change your Notice of Claim or Reply to increase the amount of your claim or counterclaim to up to $35 000, not including interest and expenses, by following the procedure set out in Rule 8 of the Small Claims Rules.

What about claims involving strata property issues?
Strata property issues are generally dealt with either in the CRT or in the BC Supreme Court (section 3.6 of the Civil Resolution Tribunal Act). However, some CRT strata property decisions are enforceable in the Provincial Court. Section 58 of the Civil Resolution Tribunal Act describes those decisions.

Want more information?
These changes will take effect June 1, 2017. Find current Small Claims procedure here.

For more information, see:

• The Civil Resolution Tribunal’s website
• Government of BC Civil Resolution Tribunal information
• Civil Resolution Tribunal Act
• Small Claims Rules

The laws available online have not yet been updated with these changes. Until online statutes on bclaws.ca are updated, see the Orders in Council for the changes to the laws mentioned here:

B.C. Reg. 111/2017. (bringing various sections of the Civil Resolution Tribunal Amendment Act, 2015 into force and making the Civil Resolution Tribunal Small Claims Regulation)

B.C. Reg. 120/2017 (amending the Small Claims Rules and Small Claims Monetary Limit Regulation)

© 2014 Office of the Chief Judge, Provincial Court of British Columbia.

Geordon Omand
The Vancouver Sun

A shortage of land and a growing economy fuelled a 47-per-cent surge in the value of commercial real estate sales across British Columbia’s Lower Mainland in 2016, says the head of the region’s real estate board.

Figures released Monday by the Real Estate Board of Greater Vancouver show sales involving commercial real estate reached nearly $13 billion last year compared with $8.8 billion in 2015.

The report also measured a 21 per cent spike in the number of sales involving commercial real estate over the same one-year period.

“It’s really the confidence in the B.C. and Vancouver economy,” board president Dan Morrison said.

“It’s no surprise that we see the same thing happen with commercial properties as has been happening for residential properties.”

Residential real estate prices have skyrocketed across the Vancouver area in recent years, prompting the B.C. government to introduce a 15 per cent tax on foreign buyers last summer on homes purchased by anyone who isn’t a citizen or a permanent resident of Canada.

Last week, the government announced it was tweaking the law retroactively so that foreigners who come to B.C. through the provincial nominee program won’t have to pay the tax, which also doesn’t apply to commercial property.

Asked if the foreign buyers tax has affected commercial real estate sales, Morrison said it is possible speculators have redirected their investments from residential to commercial properties, but there is no data to back that up.

“I would attribute it more to the economy than anything else,” Morrison said.

Land sales led last year’s growth in commercial real estate, the report says.

The value of commercial land sales explode to $7.2 billion, an 80 per cent increase over $3.9 billion in 2015, the report says.

“That’s the thing that’s the most scarce, especially if you’re looking for new commercial ventures down the road, you want to make sure you’ve tied up the land because that’s often the most important component,” Morrison said.

The report says office and retail sales also hit record numbers, reaching $3.6 billion in 2016, 47 per cent more than $2.5 billion in 2015.

© 2017 Postmedia Network Inc.

Mortgage Broker News

The Greater Toronto Area (GTA) market is “fast approaching a full-blown affordability crisis,” according to research published by the Canadian Imperial Bank of Commerce (CIBC) on Thursday.

“Until 2016 the combination of strong demand and lack of supply generated a robust, but relatively predictable path of house price appreciation in the GTA. But the notable hockey stick-like acceleration in house price inflation in 2016 suggests that other forces are at play,” wrote Benjamin Tal, deputy chief economist at CIBC World Markets.”

The 17.3% increase in average prices in 2016 is by far the strongest since the late 1980s, according to Tal. He stressed that the fundamentals for strong price acceleration are still in place. Not only is demand strong, but it’s also stronger than perceived, “as official data underestimate the number of households in the GTA by roughly 60,000 due to clear undercounting of the number of non-permanent residents in the region.”

However, 2016 stands out due to the “notable” increase in the price of high-rise units. According to CIBC, condo prices rose by close to an annualized 16% in the fourth quarter of 2016—the largest gain since the recovery year of 2010.     

“[A]s opposed to popular perception, the condo market is actually undersupplied. No less than 27,217 new condo apartments were sold in the GTA in 2016—a record year–over–year growth rate of 34%. But that surge in demand is not being met with a similar increase in supply,” said Tal. 

CIBC figures showed that the number of new condo launches last year was down by 6% and the number of unsold inventories fell by 50% to a 10-year low. 

Tal said skyrocketing prices in the GTA should be addressed with area-specific policies. “A good start would be to shelve the proposed amendments to the region’s intensification and density targets.” For the economist, imposing a tax on foreign buyers would work to soften activity, but it will not be a “game changer.”

He said “increased rental propensity” and “supply of purpose-built apartments” must be part of the solution. “With the propensity and composition of rental activity changing, it’s becoming clear that the condo market can no longer be the only option available to renters. The new wave of renters will need the stability of long-term renting and that’s where purpose-built developments enter the picture.”

“The market will eventually be tested when interest rates rise and/or the economy faces its next recession. What we do between now and then will determine the ability of the region to face that test.”

Copyright © 2017 Key Media