Archive for September, 2018

Buyers retreat from Metro Vancouver housing market over new taxes

Wednesday, September 26th, 2018

A report from realtor Sotheby’s International Canada finds that the slowdown in Vancouver real estate is across all housing types.

Derrick Penner
The Vancouver Sun

Housing sales in the City of Vancouver slumped 24 per cent over the summer as buyers became wary of paying too much, according to a report from Sotheby’s International Realty Canada.

Sotheby’s, which studied the sale of all types of housing units valued at $1 million or more, said the slowdown extended broadly across all types of housing. And Sotheby’s said the slowdown is leading to lower prices.

There is “additional nervousness in the (B.C.) market,” said Sotheby’s CEO Brad Henderson, who blames the controversy over the provincial speculation tax.

“I think ‘fear of missing out’ has translated into the fear of paying too much if you’re a buyer, and the fear of selling too low if you’re a seller,” said Henderson.

In markets such as Montreal and Toronto, by contrast, sales of properties over $1 million rose or rebounded in July and August.

In Vancouver, sales of such properties dropped to 434 units in July and August, a 24 per cent drop from the same months in 2017, Sotheby’s said, based on Multiple Listing Service records.

Sales of properties worth $4 million or more fell even more sharply in Vancouver in that period, down 33 per cent with a total of 31 sales.

And Sotheby’s said the decline extended into the previously more active condominium segment and continued for the first weeks of September, thus “darkening the forecast,” for fall. In the condominium segment, Sotheby’s counted just 162 sales over $1 million in July and August, a 21 per cent drop from the same months in 2017.

Elsewhere in the country, even in the depressed Calgary market, Henderson said sales over $1 million were up  despite tighter federal mortgage rules.

The big difference in B.C., Henderson said, remains the foreign-buyers tax implemented in 2016 and extended to other parts of the province this year and the new provincial speculation tax, “that has created additional nervousness in the market.”

Housing sales across Metro Vancouver north of the Fraser River fell by more than one third in August, according to the Real Estate Board of Greater Vancouver, with 1,929 units selling compared with 3,043 in August, 2017.

Prices declined in all property types including condominiums and townhouses. The board’s benchmark or “typical” price for detached homes was down 10.3 per cent to $3.3 million in August compared with a year earlier. The benchmark for a west-side Vancouver apartment-style condominium was $825,000 in August, a 2.4-per-cent drop in  the past three months, though the price is still almost five per cent higher than a year ago.

“Home buyers have been less active in recent months and we’re beginning to see prices edge down for all housing types as a result,” Phil Moore, president of the real estate board said in a news release.

“We’re not seeing multiple offers, we’re not seeing conditions (to purchases) waived before any condition period ends,” Henderson said. “So people have more of a chance to look at what they’re buying, to get building inspections.”

Henderson said “it is fair to say some foreign buyers have withdrawn from the Vancouver market,” That’s particularly those who don’t already live or pay taxes here.

But Henderson said many potential sellers are in a position to wait, which could will cushion the decline in prices. However, there will be “examples where someone who wants to sell or has to sell,” and will be motivated to take a lower price.

© 2018 Postmedia Network Inc

Commercial properties take novel approaches to catalyzing business growth

Tuesday, September 25th, 2018

Vancouver?s Railtown district to get a new commercial building

Neil Sharma
Canadian Real Estate Wealth

It is no secret that real estate development is the single greatest catalyst for business growth, and a couple of Vancouver-area projects are taking it a step further by offering their locales novel services.

Vancouver’s Railtown district has not seen a new commercial building constructed in around 50 years, but Rendition Developments has entered the area with Bench, a 35,050 square foot, six-storey concrete building that will have a shuttle bus to Waterfront Station on the SkyTrain.

According to Brian Roche, Rendition’s president, the local neighbourhood is a mix of tech and gaming companies, architects, interior designers, furniture manufacturers, as well as a slew of other eccentrics and international companies. However, it has neither quick downtown access nor adequate parking.

“I think the shuttle service will be very popular,” said Roche. “The reason the shuttle was even contemplated is parking has always been a premium because most of the buildings are very old and sites have been very small, so they’re not conducive to underground parking.”

Railtown is an enclave of sorts just east of Gastown and close to the waterfront. Roche expects more development to continue building upon what Rendition started with Bench.

“We were the first ones in,” he said. “I bought the first land when the rezoning was talked about, and since we came in there have been half a dozen other developers who started coming in when they saw the potential in the area.”

In Port Moody, a Vancouver suburb of roughly 35,000, industry has been scarce. Most residents work in either Vancouver or Burnaby, but Panatch Group is trying to change that by working with the municipal government.

At 50 Electronic Avenue, a mixed-use development with two condo towers, the Port Moody Hub portion of the project will offer over 2,500 square feet of commercial space that the City of Port Moody will lease for 10 years—for nominal rent.

“We’re entering into an agreement with the city to give it to them for $1 a year for 10 years,” said Kush Panatch, founder and president of Panatch Group. “They will pay a little bit to help with the operating cost as any other tenant would in the building, but they’ll use it as a catalyst for one of two things: Pop-up art shops to provide local artists a platform to elevate the business side of their endeavour so that they get more exposure and sell their work, or to give them a shop or place for a limited period of time, like three or six months, and hopefully they carry on from there onto bigger and greater things.”

There will also be space allocated for what Panatch hopes are tech entrepreneurs who can use the Port Moody Hub as a springboard, but with the eventual intention of remaining in town and helping develop its economy.

“Hopefully they come in and use this space at little to no rent for six months to a year to build up their organization,” said Panatch, “and hopefully at the end of the transition they can move into another place in Port Moody and create more employment.”

Copyright © 2018 Key Media Pty Ltd

Major correction not expected says Conference Board

Monday, September 24th, 2018

The Canadian Economy performed well in Q2 2018

Steve Randall
REP

The Canadian economy is expected to outperform a previous forecast by the Conference Board of Canada.

In its updated forecast released Friday, it said that it was expecting 2% growth in 2018, up 0.2 percentage points from its previous forecast.

But the risk of NAFTA talks failing, or increased tariffs could mean that growth is reduced by between 0.5% and 1.3% over a 2-year period.

“The Canadian economy performed well in the second quarter of 2018, with consumers increasing their pace of spending, businesses raising investment in their capital stock and a double digit increase in exports,” said Matthew Stewart, Director, National Forecast. “However, significant challenges remain, which will slow growth over the remainder of the year and into 2019.”

Housing demand expected to remain limited The Conference Board says that while it expects a further cooling of the housing market during the second half of the year, “a major correction is not in the cards.”

Demand for housing continues to be tempered by policy changes as planned by policymakers and prices are down by around 6.5% for existing homes year-over-year.

Increasing interest rates and an aging population will both weigh on demand the Conference Board says.

So too will a moderation of employment growth with a forecast of 213,000 jobs in 2018 compared to 337,000 in 2017. Wages, while up 3.1% this year, are expected to weaken significantly in 2019.

The economic acceleration in the second quarter took a significant portion out of the economy’s excess capacity. Consequently, the Conference Board expects the Bank of Canada will raise its interest rate in October and raise rates three times in 2019.

Copyright © 2018 Key Media Pty Ltd

Victoria multi-family sales strong despite looming rental regulations

Monday, September 24th, 2018

Rental sales and starts remain voracious despite proposed new rules that could dictate size and rent increases

Tanya Commisso
Western Investor

Victoria’s multi-family market is poised to entice landlords for the foreseeable future, following a summer of record home starts in the region and a vacancy rate of less than 1 per cent. 

Canada Mortgage and Housing Corp. forecasts the region’s 0.7 per cent vacancy rate to remain tight throughout 2018. 

More than 2,000 rental units are currently under construction and are expected to hit the market this year and into 2019, with more than 5,000 in the pipeline or development process. New supply is expected to edge up vacancy rates only moderately, however. 

Nearby Langford is having its own rental-housing boom, according to developer DB Services Victoria. More than 900 units were started in the municipality during the first eight months of the year. Rental housing projects in the city are lined up for the next five years – so much so that DB says it’s had to turn away new project proposals. Building permits in Greater Victoria have grown nearly 30 per cent month-over-month. 

DB Services is currently constructing three rental projects in the region, including the 93-unit The Arc on Hockley Avenue, Brock Commons student residence and the 90-unit Danbrook One on Claude Road. 

Meanwhile, implementation of recommendations from a new Rental Housing Task Force by the BC NDP government could limit a landlord’s ability to increase rents when a tenant vacates, cautions LandlordBC. 

As well, a proposed new Victoria bylaw requiring 10 per cent to 15 per cent of all new condo projects to classify as affordable units may present developers and landlords with new challenges. An estimated 6,200 affordable housing units are needed to satisfy demand, according to a report from Colliers International’s Victoria office. A healthy share of condos end up on the rental market.

“We want to make sure that [the bylaw] doesn’t stop developers from building condos,” Kathy Hogan, executive director of the Urban Development Institute (UDI) capital region branch, told the Times Colonist. “If the policy is too stringent, then it could have negative connotations on that.”

Hogan is calling for more consultation on the City of Victoria policy introduced in September, which would require strata developments of 40 or more units in the city core to have 15 per cent be classified as affordable. Developers with projects under 40 units would be able to make a cash contribution in lieu of the affordable units. 

Victoria city council is also considering instating a size minimum for all affordable housing built in the city’s downtown core. The city currently imposes a minimum size of only 355.2 square feet in multi-use projects outside of downtown. The Victoria Downtown Residents Association would like to see a limit enacted to curb the influx of micro-units cropping up of late. The UDI is worried about this idea as well.

“This type of requirement will limit the ability of developers to bring a diverse housing supply to market and limit the ability of developers to respond to market conditions,” Hogan said in a letter to council.

But if sales volumes are any indication, developers should still bet on Victoria multi-family projects. Sales for rental apartment buildings in 2017 hit $146 million, up from $127 million the year before. 

Per-suite value was placed at $215,132 in 2017, but current prices in the core can easily top $300,000. The majority of apartment building transactions are in the $1 million to $3 million range, according to a report by Colliers International. Sales of rental buildings valued at more than $1 million reached $25.8 million in the second quarter. 

Average monthly rents in the city are $1,000 for one-bedroom suites and close to $1,300 for two-bedroom apartments. 

Rental demand is expected to increase with the ongoing influx of young tech professionals moving to Victoria, pushing its unemployment rate well below the national average of 5.8 per cent. Unemployment in the city is just 4.2 per cent, the lowest across Canada, bolstered in part by three major post-secondary institutions – University of Victoria, Royal Roads University and Camosun College – and provincial government and other public-sector employment. 

In the second quarter of 2018, two major real estate investment trust sales are estimated to exceed 2017’s half-year sales volume total of $108 million. Both transactions were new purpose-built rental apartment buildings, one on Yates Street in Victoria and a development in Langford. 

© Copyright 2018 Western Investor

Landlords concerned government will leave them out in the cold

Sunday, September 23rd, 2018

Rent increases being debated

Neil Sharma
Canadian Real Estate Wealth

Amid consultations over rental housing initiated by the British Columbia government, landlords worry that the current formula used for maximum allowable rent increases could be rescinded.

Under the Residential Tenancy Act, the formula is 2% plus CPI—which, for 2019, will be 4.5%—however, according to LandlordBC, operating costs have vastly outpaced rental income and scaling back the formula could have dire ramifications.

“The main cost drivers are property taxes, utilities, insurance, basic repair, and maintenance,” said David Hutniak, CEO of LandlordBC, which petitioned the government with a report. “We compound what that formula allows us to do over a 10-year period, and that equates about a rent increase of 3.5%. During that same period, our operating costs have increased 7.5%.”

The rent control regime in B.C. is hitting landlords where it hurts, and Hutniak sees a direct correlation to the dearth of purpose-built rental buildings, which became causalities of government avarice.

“We were begging for support to build purpose-built rentals when the city was taking all this money from developers to build condos,” he said. “We’re very sensitive to renters’ challenges, and our costs are going up in excess of what we can charge.”

Hutniak credits B.C.’s Minister of Municipal Affairs and Housing Selina Robinson for championing purpose-built rental construction, but he acknowledges that her hands may be tied. Ultimately, the supply crunch is hurting renters, he says. 

“The worst thing we can do is turn off that tap because the pension funds, which fund purpose-built rentals, will take their money to where it’s less risky to build,” he said. “Our rental housing industry here is disproportionately represented by the secondary market, meaning basement suites and investor condos.”

Using Census data, Aly Jiwan, CEO of Redbrick Properties, notes that the proportion of new rental households increased from 32% in 2006 to 59% a decade later, elucidating how imperative rental housing stock is for B.C. However, it could be imperilled if the business model collapses.

“The compound annual growth rate per annum for insurance went up 8.6% over a 10-year period,” he said. “The sewer rate was 7% per annum and the compound annual growth rate for water went up 9.4% for the last 10 years.

“Repairs and maintenance have gone way up. From our experience in our buildings and existing buildings—and you have to remember existing buildings are 50 years old—they’re aging and coming to the end of their lives. We try to maintain buildings and reinvest in them because we want to maintain safe, secure, well-maintained rental housing stock for our tenants, but it’s becoming more expensive.”

Rent control is exacerbating the problem. While landlords can charge new tenants market rents, the paucity of vacancies combined with paying less money to remain in place have created low turnover.

“In an undersupplied rental market, the turnover rate plunges because tenants have a hard time finding new places,” said Jiwan. “And because of the low supply, rent prices are going up, so they tend to stay in place at the rent control rate and the opportunities for market-rate rents are much fewer. It’s a negative spiral caused by the bad government policy of rent control. It discourages supply and turnover.”

Copyright © 2018 Key Media Pty Ltd

Cedar Creek 7133 14th Avenue Burnaby three 6 storey buildings with a total of 128 homes by Ledingham McAllister

Saturday, September 22nd, 2018

Cool contemporary design on display at Ledingham McAllister?s Cedar Creek in South Burnaby

Kathleen Freimond
The Vancouver Sun

Cedar Creek is a project from Ledingham McAllister in Burnaby. PNG

The six-storey wood-frame Cedar Creek building comprises 128 units

Cedar Creek is Ledingham McAllister Properties? residential development in Burnaby, offering a range of homes from one-bedroom to three-bedroom.

The stone colour palette is seen in the den of the one-bedroom model

Cabinetry at Cedar Creek features a twist on shaker style with a cross-grain at the top and bottom

Pops of colour help create a glamorous ambience in the bedrooms, which feature both a sophisticated and an urbane style

Affordable style comes with amenities. PHOTOS PNG MERLIN ARCHIVE

Project: Cedar Creek

Project address: 7133 14th Avenue

Project City: Burnaby

Developer: Ledingham McAllister

Architect: Integra

Interior designer: The Mill

Project size: 3, 6-storey buildings (first phase: 128 units)

Bedrooms: one-bedroom and den; two-bedroom; two-bedroom and flex space; three-bedroom

Unit size: 639 to 995 square feet

Price: From low $500,000s

Construction: Starts early 2019

Sales centre: 7166 14th Avenue, Burnaby, BC

Sales centre hours: Saturday – Thursdays from 12 noon to 5 p.m. (closed Fridays)

Phone: 604-529-8868

Website: liveatcedarcreek.com

Cedar Creek, Ledingham McAllister Properties’ new residential development in South Burnaby, is part of the revitalization of the city’s Edmonds neighbourhood and will be located adjacent to the planned nearly 60-acre Southgate City community.

Construction of the first building in the three-phase Cedar Creek development at 7133 14th Avenue, Burnaby, is scheduled to start in early 2019. The 128-unit, six-storey wood-frame building comprises a range of homes from one-bedroom and den through to three-bedroom suites.

“This neighbourhood has a loyal and established long-term community and is attractive to first time buyers, people who are moving up to larger homes or those who are looking to stay in the community and downsize – it appeals to a very wide range of people,” says Manuela Mirecki, Ledingham McAllister’s senior vice president of marketing and design.

Mirecki says there is a lot of interest in the development from people who have lived in the community for a long time and those who prefer the scale of the six-storey buildings.

“The architecture is very West Coast with big overhangs and wood grain soffits. There is lots of articulation in the building, so it looks more like a collection of smaller buildings — it modulates in depth and height, creating a more vibrant and organic flow,” she says.

At the sales centre at 7166 14th Avenue, Burnaby, potential buyers can choose from two colour palettes, Stone and Sand. The Stone scheme can be seen in the one-bedroom and den example while the choices in the Sand palette are on view in the two-bedroom unit.

“Whenever we can have two display suites we always aim to show two vastly different interpretations in the décor,” says Mirecki, noting that the two-bedroom suite has a sophisticated and urbane sensibility with pops of colour and a glamourous ambience, while the one-bedroom unit is aimed at a younger buyer.

“The [one-bedroom] décor was inspired by a sweater-wrapped chair I saw at a fashion show in New York,” she adds, explaining that her inspiration, in the form of two sweater-wrapped chairs, is part of the show suite’s décor.

In the kitchens, different colours of the same cabinet style are used in both schemes. Mirecki is upbeat about the cabinetry.

“We spend a lot of time meeting with our suppliers, and on a factory tour I saw a small sample of the cabinetry we are using for Cedar Creek. I immediately liked it, it’s almost a twist on shaker style. It has the cross-grain at the top and bottom and it can be interpreted as contemporary or traditional,” she says.

The kitchen cabinets include soft-close mechanisms while matte black pulls on lower cabinets add a contrasting detail to the doors and drawers. The light countertops are complemented by the full-height backsplash of stacked white 12- by 4-inch tiles

The major kitchen appliances, all by KitchenAid, include a five-element ceramic-glass cooktop and oven; refrigerator with freezer and dishwasher. The modern hood fan is by Venmar and the microwave is by Panasonic. The in-suite laundry includes a front-loading washer and dryer by Whirlpool.

The developer has used Kohler products for all its faucets, sinks and plumbing fixtures in Cedar Creek says Mirecki, referencing Ledingham McAllister’s long-term relationship with the brand. The deep-bowl stainless steel kitchen sink and Purist faucet with pull-down spray nozzle is a nod to contemporary style in this functional area.

In the ensuite bathrooms, marble-like 12- by 24-inch porcelain wall tiles and limestone-look floor tiles give the spaces a relaxing ambience.

“In smaller spaces the less aggressive the pattern on the large surfaces the more open and bright the space will feel,” she says.

In the main bathrooms, with their Kohler Hytec soaker tubs, the large format white wall tiles, enhance the fresh and clean design esthetic.

Laminate flooring connects the entry, kitchen, dining- and living-rooms while bedrooms are carpeted.

“We have found people like carpet in bedrooms, they want to step out of bed onto something soft,” she says.

In the one-bedroom show suite, the den is shown as an office, but Mirecki says in other developments she has seen this space repurposed for a variety of uses from a sewing or craft room to accommodate a day bed for a comfortable reading nook.

All units will have one parking stall and a bike storage locker in the underground parkade. Charging stations for electric vehicles are also included (a total of five in the three phases). The developer is also working with the car-sharing organization Modo Car Cooperative, and will provide on-site parking and access to three Modo cars.

Shared amenities for the whole Cedar Creek development include play areas for children (one of these play areas will be completed to coincide with Phase 1), a fitness room, guest suite, meeting room and community garden plots.

Burnaby’s official flower, the rhododendron, is prominent in the landscaping plan that includes planting more than 170 of the flowering shrubs. More than 225 trees will also be planted including nearly 50 dogwoods (B.C.’s floral emblem) and 26 maples in addition to many other shrubs and bushes including California Lilacs and evergreen huckleberries.

© 2018 Postmedia Network Inc.

Allowing duplexes in Vancouver will increase land values, at least a little

Saturday, September 22nd, 2018

City move to allow duplexes could hike land values

Joanne Lee-Young
The Vancouver Sun

Vancouver city council’s decision to rezone 99 per cent of single-family home areas to allow duplexes has set off a debate over whether it will significantly increase land values.

Josh Gordon, an assistant professor at Simon Fraser University’s School of Public Policy, said he doubts values will go up much.

He said the rezoning didn’t change the limits on the total square footage that can be built on single-family lots. That would temper speculation, he said, because it would limit how much profit can be made in going from one larger unit to two smaller duplexes.

He expects some increase to total property value if a single-family home is rebuilt into two duplexes. Exactly how much is hard to predict and will vary, says Gordon. Wider lots, such as 50-foot ones, might increase in value more because more square footage of housing can be built on them compared to 33-foot lots.

Gordon said it is important when allowing for more density that there be a “mechanism of capturing that land lift,” so that it’s not only the land owner that benefits.

He said that when the City allows for more density in major projects, there are fees such as development contribution levies and community amenity contributions that go toward public funds for adding services or subsidizing rental buildings.

 “We can’t abandon that principle. Support for adding this density has to be conditional on this,” he said, especially given the next step would be considering triplexes and other multi-family buildings in parts of single-family neighbourhoods.

Tom Davidoff, a UBC professor, said “rising land values with more density are a good thing, not a bad thing.”

Simply put, the more people that live in an area, the higher the value of the land. And, “duplexes absorb twice as much demand as single-family homes.”

Gordon thinks that creating smaller units for more people has some short-term benefits and may draw more people into formerly single-family home neighbourhoods, but, in the long-run, it won’t necessarily increase affordability because “they end up paying more per square foot.”

In the real world, he said, if you have a 4,000-square foot house worth $3 million and you replace it with two 2,000-square foot places, they will probably have a market value greater than $1.5 million each.

© 2018 Postmedia Network Inc.

Fixing affordability: Mayoral candidates in Burnaby, Vancouver and on the North Shore have plenty of ideas

Saturday, September 22nd, 2018

When renters with good jobs find their income is mostly going to housing, politicians are under the gun to find solutions.

Dan Fumano & Lori Culbert
The Vancouver Sun

Accountant Lotfi Fetoui and his wife are raising their baby in a one-bedroom apartment in an older, low-rise Metrotown building where they have lived for five years and where they can afford the $900-a-month rent.

But the building, like many others in this gentrifying area of Burnaby, has been purchased by a developer who has told residents to move out by April — so the building can be demolished and replaced with a condo complex.

Fetoui, who works in downtown Vancouver and wants to live near SkyTrain, would love to stay in the neighbourhood, but rent in a similar building across the street is $1,650 a month.

“With these new prices we will be surviving, not living. We will work to pay the rent,” said Fetoui, adding he will vote for a mayoral candidate who will protect affordable rental stock. “I want to know: Who is the person who will take care of us, the middle class?”

Housing is the top issue for most voters in this municipal election, a recent report found, although some like Fetoui want access to affordable places to raise families while others are concerned about over-development.

“Residents’ concerns about affordable housing were most pronounced in the City of Vancouver, the North Shore and Burnaby-New Westminster,” says the report, VoteLocal, based on a recent survey by the Mustel Group, FleishmanHillard Highroad, and the Greater Vancouver Board of Trade.

In Burnaby, many residents like Fetoui are facing “demovictions” as older, smaller apartment buildings are replaced with more expensive skyscrapers. On the North Shore, the concern is how to help key members of society — families, young people and workers — afford to live there. In Vancouver, candidates argue over the role of housing supply in solving the crisis.

North Shore

In West Vancouver, where most residences are still single-family detached homes, worth $2.5 million on average, the idea of affordable housing seems improbable.

But it is a top priority for some candidates running for mayor, although none is advocating what has become the common response in Vancouver and Burnaby: build highrises.

Such towers would, most candidates agree, put too many vehicles on already congested North Shore roads, block view corridors and ruin the character of seaside neighbourhoods.

Mark Sager — a lawyer who was mayor from 1990 to 1996, and is trying to return to city hall — argues the district needs family-friendly, below-market housing for teachers, nurses and police officers.

“We have so many people commuting way too far,” said Sager. “My friends who are firefighters live in Squamish. … We can’t have our first responders, the people we depend on, commuting hours away.”

He promises creative solutions. For example, West Vancouver has many gas stations, he said, so some of that land could be re-purposed by the district for housing. City halls can encourage these types of complexes, he argued, by immediately zoning properties for exactly what they want built.

Mary-Ann Booth, a two-term councillor running for mayor, supported two highrise projects near the north end of the  Lions Gate Bridge because of their proximity to transit and because they didn’t displace renters. But she argued any further development along the district’s main street, Marine Drive, should be low-rise units geared to the “missing-middle” workers, young people and families that Sager is concerned about.

But how do you create something affordable without the density provided by a highrise?

Booth points to council’s proposal to build subsidized housing on district-owned land for moderate-income people who work in West Vancouver or for families with children who go to school there. The proposal includes 200 units, most of them to be rented at below-market rates.

Coun. Christine Cassidy, who also wants to be mayor, says the solution is more duplexes and low-rise apartments that will be “more reasonable” than a single-family home.

Asked whether a new $2-million townhouse is truly affordable, she said West Vancouver has never been an enclave for low-income families and that new developments should focus on being “achievable or obtainable,” rather than affordable.

“That has historically been the case in West Vancouver. It is individuals who are coming in here who do have to have reasonable jobs and will likely have to cinch their belt financially to come into the community,” she said.

Also running for mayor is a university student, Nolan Strong, who said he would advocate housing that is “attainable” for middle-income people but argued it wouldn’t be practical to build low-cost housing in West Vancouver. The fifth candidate is Rosa Jafari, whose contact information was not available.

Across the Capilano River to the east, the District of North Vancouver faces similar affordability challenges. Voters there will have a non-binding question on next month’s ballot, asking whether they would authorize the district to spend up to $150 million to build 1,000 units to be offered at below-market rents.

Former district councillor Mike Little is campaigning for mayor and arguing that the district is “building too much, too fast,” saying a building many high-end condo projects has not created affordable housing.

Instead, the district should make it easier and cheaper for people to create secondary suites and multi-generational housing in their exiting homes, he said.

He said projects like the one on the referendum question are flawed if the below-market rent is tied to the average income of North Vancouver residents. Rather, below-market rent needs to be based on the average income of residents in all of Metro, because it is people working on the North Shore but living in Surrey or Langley that need to be able to afford these new units, he said.

While residents in rapidly densifying neighbourhoods, such as Edgemont Village, may have “construction fatigue,” mayoral candidate Glen Webb said North Vancouverites must support new housing for families and young people. Otherwise, he said, the district will lose school funding because of a loss of fewer students and businesses will continue to struggle to find workers.

“In the long run, if we don’t create affordable housing projects, there won’t be anyone in Edgemont village to serve our coffee or bake your bread or teach at your school or to be a nurse at Lions Gate Hospital,” said Webb, a businessman.

Webb offers several solutions, including granny suites, infill housing and innovative “co-housing projects,” where residents own their own homes, but share common areas including a community kitchen.

Mayoral candidate Ash Amlani, who served on the district’s community services advisory committee and the B.C. take home naloxone advisory board, said traffic congestion is so bad on the North Shore because people who work there can’t afford to live there. She said solutions include secondary suites and coach houses, and densifying along transit corridors.

Among the many ideas put forth by a fourth candidate, filmmaker Erez Barzilay, are “creative incentives” for developers such as tax cuts and asking the financial sector for “attractive deals” to dramatically lower the price of a home.

Burnaby

How much should cities spend on affordable housing, when that responsibility has traditionally fallen to provincial and federal governments? It’s a question municipal politicians have grappled with for years.

Burnaby’s five-term mayor, Derek Corrigan, has long taken the position that kind of spending isn’t in the city’s mandate.

In recent years, B.C.’s third most-populous municipality has been debt-free and has accumulated a reserve of more than $1 billion.

Meanwhile, Burnaby residents are familiar with stories of lower-income renters being displaced from affordable homes, particularly around Metrotown, as older multi-unit buildings like Fetoui’s are torn down to make way for highrise condos.

As Corrigan seeks his sixth term at the helm, the campaign of his main opponent, Mike Hurley, is focused on attacking the mayor’s approach to housing.

Corrigan said that during his 16 years as mayor, the federal and provincial governments have done little to support housing, while affordability has steadily eroded.

“You’ve probably heard my complaint a million times,” Corrigan said. “Cities are the least powerful of all governments. We have much more responsibility and far fewer resources and far fewer powers.”

Corrigan pointed to the challenges of Vancouver Mayor Gregor Robertson, who took office in 2008 pledging to end street homelessness by 2015.

“After spending a heck of a lot of money trying to take over those responsibilities for the feds and the province, Vision … has not succeeded in solving that housing problem,” Corrigan said. “Vancouver said: ‘We’ll take responsibility for this … ‘And the province and the feds said: ‘OK, go ahead.’”

Vancouver’s government made “an admirable attempt for them to try and fix a very serious problem, but it involved a degree of naiveté,” said Corrigan. “I think they could have stood in more solidarity with municipalities who were saying: ‘Feds and province, you must come to the table.’”

Corrigan defended Burnaby’s record on housing, saying the city has fast-tracked approvals and reduced development costs for housing projects that are affordable for residents ranging from seniors to welfare recipients to lower-income families. He and hopes the promises by the federal Liberal government and the provincial NDP government will soon bring relief.

Hurley, the retired Burnaby firefighter, said he would support using city money for affordable housing — such as the below-market rental units proposed on the North Vancouver District ballot — if it’s “done in a very effective manner.” He said he wouldn’t suggest dollar amounts until he can review Burnaby’s finances.

Hurley criticized Corrigan for allowing Burnaby’s housing market to become increasingly inhospitable for renters.

The B.C. Non-Profit Housing Association has analyzed census information for municipalities and rated the health of each rental market. Out of 522 Canadian municipalities, Burnaby is ranked 520.

“They’ve taken this hands-off approach. The narrative in Burnaby for a long time has been it’s the job of the provincial and federal governments to fund housing,” said Brian Clifford, the association’s policy manager. “We would say this is the responsibility of all levels of government.”

During the 16 years of Corrigan’s mayoralty, Burnaby had a net loss of 1,026 primary rental units, a seven per cent reduction, according to Canada Mortgage and Housing Corporation data. “Primary” refers to dwelling built specifically for the rental market. During the same period, many other Metro municipalities increased their rental supply: Vancouver had a net gain of 1,457 primary rental units (a three per cent increase), and Richmond had a net gain of 592 units (almost a 20 per cent increase).

Asked about the loss of rental units in Burnaby, Corrigan said that with the number of rental units under construction, the city will “soon see ourselves get back up to the plus side.”

Corrigan responded to Hurley’s criticism by pointing to his opponent’s lack of record.

“Mike Hurley has never been a councillor, he’s never sat on a committee, he’s never been part of the system,” Corrigan said. “He knows nothing about municipal politics. I just don’t think becoming the mayor of a city like Burnaby is an entry-level position.”

Burnaby is on track to be the first municipality in B.C. to use new powers, recently enacted by the provincial NDP, allowing municipal governments to zone areas for rental housing only. Corrigan has been advocating such powers since he was an alderman in 1990.

Corrigan’s council directed city staff in July to start work on the rental zoning bylaw, and Corrigan said he hopes it will be approved by the next council.

City of Vancouver

All the leading mayoral candidates in Vancouver are campaigning on housing affordability.

Hector Bremner, the only sitting councillor running for mayor, is pushing for a dramatic increase in housing supply to combat the affordability crisis.

Bremner is running with Yes Vancouver and is pledging to“increase the city’s home building target to 12,000 homes in the first year, subsequently raising it to 20,000 homes per year,” a goal he says is ambitious but attainable.

He isn’t the only candidate throwing around big numbers.

Independent Kennedy Stewart has pledged to build an average of 8,500 new homes a year over the next 10 years, including significant numbers of rental units with both market and below-market rents.

In November, the City of Vancouver adopted a 10-year housing plan aiming to add 7,200 new housing units a year for 10 years, or a 50-per-cent increase over recent years.

Andy Yan, director of SFU’s City Program, has analyzed CMHC data on Vancouver housing starts for the last 20 years and questions where some candidates are getting the numbers in their platforms.

“These kinds of promises by these mayoral candidates are so far off the construction capacity, and what’s happened in the past,” Yan said.

According to Statistics Canada, there were 309,418 total dwellings in Vancouver in 2016, an eight-per-cent increase over 2011. That means an average of 4,535 units were built each year.

The figures also show Vancouver had a boom of detached houses recently. During the third term of Vision Vancouver’s government, the average number of detached houses being built was up 60 per cent over its first term.

That’s both “unexpected and ironic,” Yan said. There was “this whole idea that Vancouver was in a post-SDH (single-detached-home) era,” he said. “But it’s like Mark Twain’s great quote: ‘The death of the single-detached home has been greatly exaggerated.’”

Yan said that raises the question of whether the massive amounts of construction Vancouver has experienced in recent years is creating units that might be more affordable for local workers or is mostly demolishing old houses to build new ones.

“It’s the revenge of the single detached home,” Yan said. “It’s not going out without a fight, it’s a zombie that keeps regenerating.”

The single detached home is a housing type that is almost by definition unaffordable for most Vancouverites. The median selling price of a detached house on Vancouver’s east side was $1.57 million last year. That’s less than half the price of the west side but still 24 times the city’s median household income of $65,327 a year.

Meanwhile, Yan found the housing types most affordable to working Vancouver families make up a fraction of the housing starts: row houses and townhouses made up less than three per cent of housing starts last year. Semi-detached units, including duplexes, were less than two per cent.

Other mayoral candidates have avoided specific housing targets in their platforms.

David Chen, ProVancouver’s mayoral candidate, said his party is “concerned about the big numbers and even the ones the city has in its 10-year plan. We are concerned that there is no capacity to actually increase builds because the available workers are the choke point.”

However, Chen believes it’s possible to commit to 5,000 units a year by expanding the city’s temporary modular housing program, currently focused on inexpensive homes for those with low incomes, to “middle class affordable rentals” as a “stop gap solution.”

NPA mayoral candidate Ken Sim didn’t include specific numbers in his housing platform, except for his promise to bring “up to 40,000 new units within reach” for renters by allowing two secondary suites in detached homes.

Independent Shauna Sylvester wants to make Vancouver “the North American capital of co-ops and co-housing,” and has set a target of adding 2,800 housing units at rates affordable for people on welfare, with 1,000 for women and children. But beyond that, she said big housing numbers isn’t the right approach, and she’s more interested in a target of a three per cent rental vacancy rate.

Coalition Vancouver candidate Wai Young has a different approach, and has said Vancouver doesn’t need more housing. David Cavey from Young’s campaign team said: “We are building faster than the population is growing and, more often than not, building the wrong type of housing. So, yes, the city is building too much housing.” Wai said the city needs to give priority to building rental units and starter homes.

Vancouver 1st mayoral candidate Fred Harding said he wants to review the city’s system of community amenity contributions, which are paid by developers in exchange for extra density. His party has not released a housing platform.

© 2018 Postmedia Network Inc.

HOW HAS THE ON-DEMAND ECONOMY IMPACTED REAL ESTATE?

Thursday, September 20th, 2018

Clients want real estate on-demand

other

Everyone wants everything. Right now.

For centuries, thinkers and philosophers have dreamed of a world where if you could think of something, you could have it—instantly. But now, that’s more than just a vision. Millions around the world simply can’t imagine any other way to live. 

And thanks to smartphones, they can get it.

With more than 207 million smartphones in the U.S. today, 2 out of 3 people use one. They love the fast, satisfying technology. But even more than that, they love the promise: Getting what you want, with a few touches. Today, not tomorrow. 

A successful business is an accelerated business.

Spotify, Netflix, Amazon Go, Uber and the entire mobile banking industry have all built their reputations on instant gratification. And now, real estate is joining the party, too—if you’re ready.

19% of clients expect a response within 10 minutes  more than 78% of clients expect a response within an hour

Be there for them. Or they’ll find someone who is.

76 percent of real estate agents said clients expect a faster response today than they did five years ago. But a simple filing cabinet or hard drive search can delay your response long enough to make clients nervous. That’s why it’s best to anticipate which forms you’ll need, storing them in the cloud for easy access later. Templates are another good idea— they cut down on contract prep time. 

Texting is everything.

Five years ago, most real estate business was still done via plain old voice phone. Now, although email use has gone up a tad, texting has skyrocketed. That means either you’re available to do business and close deals on your smartphone… Or you’re not available. Period.

Since you’re texting anyway…

With most clients already doing business on their smartphones, and in turn requiring you to be on yours, why not take advantage of all its powers? You can do a lot more than just text. 

Welcome to your new realty office: Your smartphone.

Receiving client notifications in real time? Drafting and sending offer letters from an open house, on site right after a showing? Speed up the buying and selling process, by using new apps to do business instead of just talking about it. Your phone does it all without missing a beat. 

Your next “close” is in your hands.

Real estate apps and other technology are advancing fast. So if there’s something you can’t do on mobile now, wait a few weeks. Chances are, time is on your side. We’ve met plenty of successful agents who don’t even have a physical office or desk anymore!

Technology is making clients smarter.

More than 86 percent of the clients in our survey took the initiative to educate themselves on the home market using Zillow. 70 percent used Realtor.com, 53 percent used Trulia, nearly 29 percent used Redfin, and 21 percent used Homes.com.

It’s making them tougher, too.

Compared to clients of five years ago, today’s smartphone- wielding buyers are nearly 72 percent more likely to have a specific listing in mind when they engage you, 51 percent more likely to have already calculated the listing price, 39 percent more likely to be aware of neighborhood comparables, and a full 48 percent more likely to know how the home-buying process works in general. 

39% of clients more likely aware of neighborhood comparables 

It’s time to keep up.

Look at it this way: If clients have access to the fastest and most sophisticated real estate buying and selling tools in history, shouldn’t you? After all, you’re a professional who does this for a living. At the very least, you want to hold up your end of the conversation. The goal: Conducting all the basics of your business, even while you’re away from your desk.

Vancouver passes change to zoning bylaw

Thursday, September 20th, 2018

Vancouver councillors have voted to allow duplexes in most city neighbourhoods

Canadian Real Estate Wealth

Vancouver councillors have ended two days of public hearings by voting to allow duplexes in most city neighbourhoods currently restricted to single-family homes.

Mayor Gregor Robertson says the decision is another step toward adding homes in the city for the so-called “missing middle,” which includes young families pushed out of Vancouver by soaring property prices.

A news release from the mayor’s office says the policy change means duplexes are now permitted on approximately 67,000 single family lots, offering an option that is more affordable than a detached home.

The 7-4 vote was split along party lines with Robertson, five Vision Vancouver members and councillor Hector Bremner approving the motion, while three Non-Partisan Association councillors and the Green party’s Adriane Carr voted against.

The vote also marks one of the last major decisions of Robertson’s decade-long tenure as mayor because he is not running in next month’s civic election.

Robertson agrees the duplex proposal is not a “silver bullet” that will resolve Vancouver’s housing problems, but says it responds to the demands of residents.

“Over the past two years of consultation for the new Housing Vancouver strategy, we heard loud and clear that Vancouverites want more housing options in single family neighbourhoods,” he says in the release.

The change aligns zoning in expensive and increasingly unpopulated neighbourhoods such as Kerrisdale, Dunbar and West Point Grey with regulations in crowded and growing areas such as Kitsilano and Strathcona.

Robertson calls the policy a “modest, but important change.”

Critics predict single-family homes could now be targeted by speculators, adding to already soaring property prices, while Tom Davidoff, associate professor at UBC’s Sauder School of Business, says the measure is good, but not enough.

“It’s a start. But when you have land that’s worth tens of millions of dollars an acre, to really put a dent in affordability, you want to go to at least townhomes or small apartment buildings,” he says.

As a way to reduce speculation on land values, the mayor’s office says the new policy does not allow for an increase in height or density on a single-family property, but it says other measures to add density are being planned.

“Further work is underway as part of the Making Room program to bring forward options for rowhouses, townhouses, and low-rise apartments- with a priority on rental housing and co-ops in low-density neighbourhoods,” the release says.

That report could be brought to council by next summer. 

The Canadian Press

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