Condo sales were projected to take a hit this month due to more expensive mortgage rates – but it appears that many buyers missed that memo

Frank O’Brien
Western Investor

Runaway Metro Vancouver condominium sales were projected to take a hit this month from more expensive mortgages. But it appears that many buyers missed that memo.

The Bank of Canada (BoC) pushed its interest rate to 1.25 per cent January 17, the highest level in nine years, and, since January 1, all buyers are now subject to a federal mortgage stress test that forces them to qualify at lending rates 2 per cent higher than what is available. The BoC’s move marks the third 0.25 percentage point increase since July 2017 and the first time the rate has risen above 1 per cent since 2009.

Banks were quick to react. Scotiabank raised its prime lending rate, offered to its best mortgage clients, to 3.25 per cent from 3.2 per cent within hours of the announcement.

Greater Vancouver condo sales reached 18,193 units in 2017; in December they were up 12 per cent and benchmark prices were up 26 per cent compared with a year earlier. So far, the pace has not slowed.

“We sold three condos in the last seven days, and we got multiple offers on all of them” said Adil Dinani, an agent with Royal LePage West in Burnaby.

One Richmond condo he sold was listed at $699,000 but sold for $53,000 above that price after multiple bids were received.

Dinani said Metro Vancouver is now seeing a “slingshot” effect as more buyers flood into the market fearing even higher interest rates on the horizon.

Dinani added that the strong 2017 sales momentum has carried into this year.

Lindsay Meredith, a professor emeritus at the Simon Fraser University Beedie School of Business, said the hike in lending rates “will not make a hell of a lot of difference” in Vancouver or affluent Metro suburbs. But, he said, it will hammer buyers in lower-priced areas.

“Those buyers are more likely to be entry-level, and they are already in hock up to their eyebrows. They are the ones who are packing record-high debt and would already have problems qualifying for mortgages.”

Meredith expects to see at least two more BoC interest rate hikes this year, which he said will drive many marginal homebuyers out of the market altogether

Copyright © 2018 Western Investor

The announcement comes on the eve of negotiation between the company and its workers’ union

Tanya Commisso
Western Investor

Ten Safeway stores across the Lower Mainland will be closing, parent company Sobeys has announced on the eve of negotiations with the union that represents Safeway workers.

The workers’ union, UFCW 1518, said on its website that it received notice from Sobeys this morning (January 23) abruptly announcing the closures, which affects stores from Vancouver to Mission.

“This is an insult and an outrage,” said Ivan Limpright, president of UFCW 1518, which represents about 4500 Safeway employees.“Hundreds of our members will lose their jobs. Hundreds more will be displaced through the transfer process. And Sobeys barely gave us a courtesy call,” he said.

The union sees the move as a scare tactic and plans to fight against the permanent store closures.

“Our members have rights. Sobeys has demonstrated they have little respect for the collective agreement but we’ll be there, contract in hand, every step of the way,” says Limpright.

Safeway has responded to the union’s comments and say they are receptive to beginning respectful negotations. However, the company says the union was not open to conversations regarding the stores’ profitability before the closure notice was issued. 

“We’ve invited UFCW 1518 to the table to review stores that are under financial pressure in June and then again in October of last year, so that we could talk about ways to help our unprofitable stores turn the corner to protect jobs and continue to serve our customers,” said Jacquelin Corrado, Sobeys communications director. “Unfortunately they declined to engage in the conversation both times.”

 

Sobeys acquired the Canadian division of Safeway Inc. in 2013 as well other grocery brands such as FreshCo, Thrifty Foods, and IGA. Sobeys says it may open FreshCo stores at five of the closed Safeway locations, if “favourable terms and conditions” are reached.

 

The chain’s grocery store locations slated for closure are:

• Lougheed Mall (Burnaby)
• City Square (Vancouver)
• Sunwood Square (Coquitlam)
• West Point Grey (Vancouver)
• Royal Oak (Burnaby)
• Blundel (Richmond)
• Broadmoor (Richmond)
• Newton Town Centre (Surrey)
• Strawberry Hills (Surrey)
• Mission

© Copyright 2017 Western Investor

A New Wave of Convertible Living in Burnaby

REW

For professionals, families and couples looking for urban condo living with ample access to nature, look no further than Hillside East at Concord Brentwood. 

The latest phase of Concord Pacific’s community transformation and a seamless extension of Brentwood Town Centre, Hillside East is a collection of two striking towers nestled in the heart of what is quickly becoming Burnaby’s most vibrant neighbourhood. 

At the heart of Concord Brentwood will be a 13-acre urban park, bounded by the Stickelback Creek Riparian boardwalks and viewing decks, giving residents abundant access to nature. Open green spaces, pathways, recreational facilities and a proposed future school will all be part of the completed Concord Brentwood. 

Concord Pacific provides to Canadian residents a 25% deposit structure for Concord Brentwood. For foreign buyers, the deposit is set at 35% and for first-time home buyers who qualify under BC’s Provincial guidelines, we will offer a reduced desposit of 20%. 

For more than two decades, Concord Pacific has set and surpassed new standards for master-planned communities. Each community has been envisioned and designed in synergy with its surroundings, with shops, parks, marinas and recreation. Concord Brentwood’s Hillside East offers a seamless blend of urban living with natural beauty.  

The Hillside East presentation centre is located at 4750 Kingsway Street, Burnaby, BC. To register or for more information  visit  https://www.concordbrentwood.com/ or email   [email protected]  

© 2018 REW.ca

Customs House takes an iconic location on Victoria’s Inner Harbour

Michael Bernard
The Vancouver Sun

Customs House

Project Address: 816 Government Street, Victoria

Project Scope: A total of 57 one-, two- and three-bedroom condominium homes in a seven-storey heritage building facing the Inner Harbour, along with the provincial legislature building and the Empress Hotel. Homes range from 618 to 4,422 sq. ft., including penthouses with rooftop patios up to 1,990 sq. ft. Set in the heart of Victoria, Customs House has easy access to seaplane service and high-end restaurants and shops, in a historic structure with commanding views in all directions

Prices: From $850,000 to $11 million

Developer: Cielo Properties Inc.

Builder: Farmer Construction

Architects: Merrick Architecture, Studio One Architecture

Interior Designer: Insight Design Inc.

Sales Marketing: Magnum Projects

Sales Centre: 955 Wharf St., Victoria

Telephone: (250) 590-9881

Centre Hours: By appointment only

Website:  customhouse.ca

Completion: Late 2019/early 2020

Redesigning a building that sits alongside the Empress Hotel and the B.C. legislature — the “grand dames” of Victoria’s Inner Harbour — could be an intimidating exercise for any architect, even one as experienced as Paul Merrick.

The renowned B.C. architect, whose honour-winning heritage projects range eclectically from the Orpheum Theatre and Pennsylvania Hotel in Vancouver to Victoria’s St. Ann’s Academy, knew there would be high expectations in an estimated $100-million makeover of a landmark heritage building facing the legislature on the Inner Harbour.

His first thought, when transforming the building into 57 luxury residences known collectively as Customs House?

“I was humbled,” he said. “Its significance took a while to sink in, which says something about what kind of place that it is. It is really one of the most magnificent urban rooms in all of the world.”

Much of that humility results from his respect for famed British architect Francis Mawson Rattenbury, who designed both the legislature and the Empress. Today, both buildings are seen as among Canada’s most stately and historically important heritage structures.

Customs House, which takes up an entire city block framed by Government, Wharf and Courtney streets, was built on the harbour between 1894 and 1898. It has been variously known as the Federal Building, Post Office and Customs House, the latter for its role in processing goods leaving and entering the country. Its important historical features include the façade’s sandstone walls, quarried from nearby islands in Georgia Strait.

It also has what might be considered an eminently forgettable element — the addition of a post office, built in 1952 in a drab post-war style. That made it easier for Merrick and his co-partner in the project, Studio One Architecture, to recommend to Customs House developer Stan Sipos to demolish that portion and replace it with new construction that constitutes about half the project.

Merrick said Sipos moved back and forth between considering long-vacant Customs House for commercial, office, retail and residential development before settling on a mixed use.

About 16,000 square feet of retail space at ground level will eventually be home to high-end restaurants and boutique retail stores, says Johnathon Sipos, Stan’s son and vice-president of Cielo Properties Inc.

“We (Cielo) have always been drawn to it,” said Sipos. “It was just such a prominent location in Victoria that we really wanted to do something that was a true landmark, a true legacy. It is really the last unfinished piece in Victoria downtown.”

Studio One managing partner Jim Wong said his firm worked alongside Merrick focusing on the building’s interiors and underground parking.

“It’s an A-1 location in Victoria, the best location in the city,” said Wong, whose firm has undertaken several other building restorations in the city. “Obviously, when you have the legislature and the Empress as your neigbours, you are in good company.”

Among the project’s greatest challenges has been retaining the heritage features of the windows, including those at ground level, and adapting the interiors, which had the typical floor plates of office and administrative structures of the day, to modern-day living standards.

“The building has much larger floor plates than those in residential buildings,” he said, adding the original design has “long, narrow bowling alley-like footprints from the building’s core to the facade” that are not suitable for residential living. “We went through many iterations.” Also challenging is shoring up the heritage façade while performing seismic upgrades and excavating under the building to construct three levels of underground parking.

Patrick O’Callaghan, marketing manager of Magnum Projects, which is selling the homes, said about 50 per cent of the units — including one of the penthouses for $10 million — have been purchased since the sales campaign began in late August.

The majority are local buyers, including people downsizing from larger homes in Oak Bay, Uplands and Saanich, as well as from Vancouver. The project has also attracted buyer interest from farther afield, including Calgary, New York, Texas, New Zealand and Asia. Residents will be able to enjoy easy access from Vancouver’s Coal Harbour to Customs House via seaplane, O’Callaghan noted.

“It really is unprecedented in Victoria,” he said. “It has had private previews for the most part and we’ve reached out the realtor community and our private database.”

O’Callaghan notes that the homes range from 618 to 1,178 square feet for a one-bedroom unit, 1,125 to 2,378 for a two-bedroom, 2,279 to 3,433 square feet for a three-bedroom and from 3,531 to 4,422 for the penthouses. The penthouses also have up to 1,900 square feet for a rooftop garden, which is accessed by a small elevator from the main living area.

The ceilings range from 10 feet to 13 feet high, with some units having views of the Inner Harbour. Buyers have choices of light and dark palettes. Imported Italian cabinetry is used for kitchens, bathrooms and laundry rooms. Perimeter countertops in kitchens are made of engineered stone, while the island is quartzite with a waterfall edge.

Appliances vary depending on the unit group: the Harbourview kitchen features Wolf and Sub-Zero appliances, with a 36-inch gas cooktop, 36-to-42-inch integrated refrigerator-freezer, a 30-inch combination wall oven and steam oven, and a built-in Asko dishwasher and built-in microwave. The kitchen is completed by a wine fridge.

The Kohler cast iron sink ranges from 24 to 36 inches with white enamel finish and a Kohler pull-down style faucet. Glass backsplashes are back painted. Some larger kitchens have a pull-out pantry.

Main bathrooms and secondary ensuites have large-format 12-by-24-inch porcelain floor tiles, and marble dual vanity countertops with marble mosaic tiles in the shower stalls.

Customs House has a second-floor gym complete with sauna and steam room, a car-wash station underground, and a 24-hour concierge service in the lobby.

© 2018 Postmedia Network Inc

Real estate ‘headwinds’ could slow retail, construction sales

Joanne Lee-Young
The Vancouver Sun

The province’s economy, which enjoyed a robust year in 2017, is expected to downshift in 2018, according to the Business Council of B.C.

The residential real estate industry has driven so much growth across the B.C. economy in recent years. Now, with so-called “policy headwinds” in sight, there will also likely be an accompanying impact on retail sales and construction, says BCBC chief economist Ken Peacock, whose group analyzes economic prosperity and competitiveness.

Total retail spending in B.C. was up nearly 10 per cent in 2017. In particular, sales at building material stores were up nearly 30 per cent in the second and third quarters of 2017. Automobile retailers posted an annualized gain of more than 25 per cent in the third quarter.

“The steady inflow of foreign money and wealthy immigrants are factors, but so is the broader wealth effect from soaring real estate values as more B.C. homeowners tap into their home equity to help finance renovations and other large purchases,” wrote Peacock.

“The resiliency of the real estate market has been a surprise, but it’s a characteristic of the Vancouver market,” says Peacock.

Ahead, however, rising interest rates and possible provincial government action to dampen speculation in the housing market “could have a material effect on economic growth in the province over the next two years.”

It’s difficult to quantify predictions, and Peacock declined to give even a range, but says, in general, it will be tougher for borrowers to qualify for loans in order to purchase properties.

“We’ve had record low interest rates, with some bumps up, here and there, but for over a decade it’s been low. And now, we are moving out of that in a more serious way. The direction we are headed is clear.”

Says Peacock: “It’s not calamitous. It will be gentle. As long as we have good job growth, in-migration, then traditionally, we have been OK.”

© 2018 Postmedia Network Inc.

Steve Randall
Canadian Real Estate Wealth

Canada’s major banks have been quick to react to the Bank of Canada’s decision to raise interest rates to 1.25%.

CIBC, RBC, Scotiabank and TD were among the first lenders to increase their prime lending rates by 25 basis points to 3.45%; the new rates take effect from today (Jan 18).

The BoC rate hike was widely expected but what happens next is the burning question.

Although BoC governor Stephen Poloz painted a rosy picture of the Canadian economy at the end of 2017, his speech Wednesday noted that growth is forecast to slow to 2.2% this year and 1.6% in 2019, compared to the forecast 3% growth in 2017.

NAFTA also presents a challenge to the economy and the governor sounded a cautious tone over its uncertainty.

Governor Poloz said that while interest rates would need to rise over time, the Bank would need to provide some continued “monetary policy accommodation” to keep inflation in check and keep the economy operating close to its potential.

So when might those increases come?

CIBC Economics chief economist Avery Shenfeld says one more increase is likely this year – he’s forecasting early in the third quarter – with two further increases (50 basis points) in 2019.

TD’s senior economist Brian DePratto says that July is penciled in for the next increase but notes that data may present a case for that to be moved forward or pushed back.

Copyright © 2018 Key Media Pty Ltd

Richmond’s Cascade City takes high-end inspiration

Mary Frances Hill
The Province

Cascade City

What: 271 homes, with retail space on the ground level. The 15-storey towers will stand on a narrow 87,252-square-foot site at Gilbert Road and Elmbridge Way in Richmond

Where: 5788 Gilbert Road (Tower A currently selling); 5766 Gilbert Road (Tower B, coming soon)

Developer and builder: Landa Global Properties

Residence sizes and prices: One, two and three bedrooms, 505 – 1,505 square feet; one bedroom starting from mid-$500,000s

Sales centre: 7100 Elmbridge Way, Richmond

Sales centre hours: Noon — 5 p.m., Sat — Thurs

When Geèle Soroka envisioned the interiors of Cascade City, Landa Global Properties’ new-home community in Richmond, she found inspiration in the names often associated with comfort and luxurious living.

The illustrations of the details in decor and finishes in the Cascade City suites show the simplicity of great design. “The concept was to create a luxury dream space for potential buyers,” says Soroka, the principal of Sublime Interior Design. She based the look of the dining room lighting on the styles found at Restoration Hardware, while the dining room chairs take on the flavour of the luxury brand Minotti, and the living room chairs, sofa and throw were inspired by Versace, Roche Bobois, and Hermes, respectively.

Her rendering of the lighting over the kitchen island is a thing of beauty — a conversation piece inspired by Restoration Hardware that blends traditional with contemporary style, she says.

“We selected this light fixture because of its brushed bronze tone, sleek lines and sparkly crystal spheres. It has sleek contemporary lines with a traditional colour, making it a perfect mix.”

In a kitchen, the marriage of just two tones — high-gloss light grey upper cabinets and white lower cabinets by Aster Cucine — creates a dramatic effect.

 “The high-gloss finish creates a chic look and reflects light, while smaller details in the cabinetry and the island transform their look and practical uses,” Soroka adds.

“Using finger-reveals [which allow the homeowner to see a portion of the cabinet frame] instead of cabinet hardware creates a clean and minimalist look. The side gable on the island creates the illusion of a waterfall edge that integrates into the countertop, enlarging the appearance of the island.”

In a bathroom, the Sublime team used the same tile on the wall and flooring, which gives the room a posh feel. These Italian marble-inspired tiles “give the look of luxurious marble, but offer durability. By using the tiles on the floor and walls it creates a more streamlined and clean look, enlarging the appearance of the space, and … giving the room a luxurious spa hotel feel.”

The suites are shallow, which allows for room for more windows to brighten the space and emphasize the view, says Arno Matis, principal at Arno Matis Architecture, whose firm collaborated on the development’s design with Rafii Architects.

“Efficient floor plans [give] the homeowner gets more square footage in useful, living spaces (living, kitchen, dining, bedroom) as opposed to less desirable locations (like corridors),” he says.

“The shallow tower floor plate also means units have more access to decks: Each unit has a deck that wraps the full length of the unit. As units are more shallow, decks are more generous.”

© 2018 Postmedia Network Inc

other

As you’re aware, the government is continuing to implement the 28 recommendations that the Real Estate Council of BC’s Independent Advisory group made in 2016. On March 15, 2018, a ban on limited dual agency and new disclosure requirements will take effect.

We encourage you to read the below message that the BC Real Estate Association (BCREA) issued today. It outlines some of the steps they’re taking to engage and influence government during this period of change.

We’ll communicate more on this topic in the weeks ahead.

Responding to rule changes

As you know, the Real Estate Council of British Columbia is preparing to implement the rule changes to eliminate limited dual agency and require additional disclosures. Those changes take effect on March 15, 2018, and the decision to change the rules came from the Office of the Superintendent of Real Estate, which has oversight over the Council.

These changes will have significant impacts on many REALTORS®. The Council’s weekly Real Advice emails provide fresh reminders of that fact. BCREA has two lawyers independently examining the Council’s information to identify interpretations that will have significant, negative impacts on consumers and REALTORS®.

We continue to raise concerns and point out negative consequences of the Council’s implementation plans. When we provide feedback to the Council, BCREA’s objective is to be as constructive as possible. We agree with the Superintendent and the Council that consumer protection and professionalism are both important. Also important are stability and confidence in the marketplace and in REALTORS®, and the consumer’s right to choose who they work with.

To be clear, the Council has given no indication they’re willing to change anything. Even so, the Real Advice emails invite responses (1-877-683-9664 or [email protected]), and we encourage you to take advantage of that. We have several weeks before the changes take effect, but responding quickly is still a good idea. The more feedback the Council receives, the better—especially if you can demonstrate how consumers will be affected.

Over the last 18 months or so—before the rule changes were made—BCREA and the 11 real estate boards around the province advocated strongly for REALTORS®. We met and communicated with the Superintendent, Council and provincial elected officials, and consulted with REALTORS® (something we’re still doing). There’s no guarantee we can change the outcome, but have, are and will continue to work on your behalf.

Heritage Manors Become Luxury Townhomes in Fairview

REW

Combining a fusion of history and contemporary vision, Heritage by Formwerks is the dazzling result of converting three historical Fairview manors into 12 beautiful new townhomes, ranging from 683 to 2268 square feet.

Following the success of Vancouver’s sold out Winona Park townhome project and its sought-after Tudor House, Heritage by Formwerks is an exciting new development from Formwerks Boutique Properties.

“I think when we lose heritage buildings in the city, a bit of its soul is lost too,” says Jack Brown, director of interior design at Formwerks Architectural Inc. “Because the city has grown so quickly in such a short period of time, I think it’s important that we hang onto what the character of Vancouver is.”

Each of the three townhomes will feature elements such as stained-glass windows, cedar shingle siding, granite entry columns, porches and bay windows. Some townhomes will even have the manors’ original front doors.

Tucked alongside a tree-lined street in this sought-after neighbourhood, the exclusive collection of one-to four-bedroom residences will be retrofitted with new foundations, plumbing, electrical and fire protection measures, as well as entirely new interiors.

“When we’re designing a space it’s important that there is reference to the original architectural vocabulary. It’s important that a cohesive story is told – it really starts at the front of the house, and I want to make sure that that’s followed through throughout the interior,” says Brown.

The attention to detail in each home will be flawless. Home buyers will choose between two heritage-inspired colour schemes, which pays reverence to the arts and crafts movement that was prevalent at the time of original construction. The homes will boast marble mosaic features, quartz countertops and engineered hardwood, as well as the modern amenities discerning buyers come to expect, such as under-cabinet task lighting, radiant in-floor heating, gas stoves and home security systems.

Centrally located south of the downtown core and bordered by Kitsilano and Shaughnessy, Heritage is minutes to South Granville, with an eclectic blend of fine restaurants, upscale shopping, quaint parks and luxury residences.  

With more than 30 years of experience designing quality homes, award-winning Formwerks has a portfolio of more than 600 custom single-family homes and townhouses. Built on the foundation of quality and design, the locally owned company is synonymous with developing elegant multi-family projects with timeless value.

From its enduring architecture to its high-end finishes, Heritage by Formwerks is a luxury development to the core. Inspired by the elegance of three Fairview mansions, built between 1913 and 1923, Heritage offers local homebuyers a unique opportunity to make their home in one of Vancouver’s most iconic neighbourhoods. Currently available plans start at $1,199,00. Tentative completion is slated for mid-2019.

Heritage by Formwerks sales gallery, located at 1625 West 5^th Avenue, Vancouver, is open by appointment only. For more information or to register, call 778-729-0898, email [email protected] or visit www.heritagebyformwerks.com.

© 2018 REW.ca