Where are the opportunities in Western Canadian commercial real estate?

Ephraim Vecina
Mortgage Broker News

The Canada Mortgage and Housing Corporation’s previous prediction of a 9-18% home price drop this year no longer applies, according to several economists in a new Finder survey.
The Crown corporation’s forecasts were criticized by Christopher Alexander, executive vice president and regional director of RE/MAX Integra’s Ontario-Atlantic Region, as misplaced “fear-mongering”.
“While I can appreciate some of the reasoning that went into CMHC’s prediction, especially in the spring when so much was still unknown, the market data doesn’t support such a steep price decline, especially with the two largest real estate markets of Toronto and Vancouver continuing their upward momentum,” Alexander said in early October. “The Prairies are facing different circumstances and challenges due to the resources sector, but Ontario and BC are expected to offset slower activity in Saskatchewan and Alberta.”
Sherry Cooper, chief economist at Dominion Lending Centres, also called the CMHC predictions “overly pessimistic” considering that Canada’s average home price went up by 1.5% in August.
Helmut Pastrick, chief economist at Central 1, echoed Cooper’s assessment, saying that prices are actually on the rise overall and that historically low mortgage rates will impel a more dynamic market, leading to further price growth.
Seven Finder respondents predicted an average increase of 3% over the next six months. However, while the larger market has exhibited resilience despite COVID-19, around 33% of respondents are still bracing for a modest decline in housing activity up to at least mid-2021.
“This reflects historic loss of income, job insecurity, virus fear and uncertainty, stricter CMHC lending rules, an effective pause on immigration, an exodus out of high-density urban markets, low tourist and foreign student demand for Airbnbs, and end of mortgage deferrals by banks,” said Tony Stillo, director of economics for Canada at Oxford Economics. “These factors may force many homeowners – particularly highly leveraged households and investors – to quickly sell their homes.”

Copyright © 2020 Key Media

Median Detached House Price Under $1M in Only 9 of 35 City of Toronto Neighbourhoods

Jannine Rane
other

September was a record-breaking month for home sales in the GTA, as more city-dwellers reassessed their housing priorities in search of homes with higher square footage. Housing demand in the City of Toronto was a true reflection of this trend, with detached house sales growing 28% y-o-y (vs. a modest 7% increase in condo apartment sales) and 1,161 homes changing hands. The median home price for detached properties in the City of Toronto for September 2020 was a staggering $1,185,000 (+10% y-o-y); meaning half the detached houses sold during the month sold for less than this amount, while the other half sold for more. 

Zoocasa took a closer look at median house prices for detached houses in 35 neighbourhoods across the City of Toronto to understand where there may be pockets of opportunity for aspiring buyers seeking a lower barrier to entry for a detached house. We highlighted neighbourhoods where the median detached price is under $1,000,000 and for every neighbourhood included in our analysis, we also calculated the minimum down payment required to secure a mortgage on the median-priced detached house, based on down payment guidelines in Canada.  

If the purchase price for a property is lower than $1M, the minimum down payment required ranges between 5% to 7.5% of the purchase price, compared to the minimum down payment of 20% of the purchase price for properties over $1M: 

• For a purchase price of $500,000 or less, the minimum down payment is 5%
• For a purchase price of $500,000 to $999,999, the minimum down payment is 5% for the first $500,000 and 10% for the remaining portion
• For a purchase price of $1,000,000 or above, the minimum down payment is 20%

This means buyers purchasing a home under $1M need a substantially smaller down payment relative to property’s total price. For example, for a purchase of $1,000,000, the minimum down payment required is $200,000; however, for a home purchased for $999,999 (a dollar shy of $1,000,000), a buyer needs a minimum down payment of $75,000.

Housing Competition for Detached Properties Heating Up Across Toronto’s Most Affordable Neighbourhoods 

Across the City of Toronto’s 35 neighbourhoods, there are just 9 neighbourhoods where the median price for a detached house is under the $1M mark, compared to 2019, when there were 14 such neighbourhoods. 

“Now that home has become not just where we live, but for many of us, also where we work, finding a space that can accommodate both, at an affordable price within city limits can be challenging,” said Evelyn Anders, Toronto-based real estate agent and Zoocasa’s director of business development. “However, there remain opportunities for those that have their sights set on purchasing a detached property in the city’s East and West end.”    

In fact, Zoocasa’s analysis revealed that of the 9 neighbourhoods where median prices were under $1M in September 2020, 4 are situated in the city’s West End and the remainder are in Toronto’s East End. For homes priced under $1M, buyers in these 9 neighbourhoods have a lot more flexibility when it comes to down payments since the minimum down payment required is significantly lower. Specifically, in all 9 neighbourhoods where the median price remains under $1M, the minimum down payment required remains under $75,000, offering prospective buyers a significantly lower barrier to entry for a detached house, than for homes priced at $1M or higher, where the minimum down payment required would be at least $200,000.  

Anders notes that the majority of the homes available under the $1M mark are older, war-time bungalows, and some 2-storey properties in the city’s East End. That being said, they offer a great entrypoint to the detached housing market for buyers that don’t mind living in an older property or those that can afford to make renovations over time. 

Toronto’s most affordable neighbourhood for detached houses based on the median home price is W03 (Rockcliffe-Smythe, Keelesdale-Eglinton West), where the median price was $875,000 in September 2020, up from $775,000 in 2019. In W03, home buyers require a minimum down payment of just $62,500 to secure a mortgage on a detached property. According to Anders, this neighbourhood has shown tremendous growth in popularity recently, and its proximity to other trendy neighbourhoods like Bloor West Village and The Junction has fuelled further interest in the area. 

As such, there is growing competition among buyers in the area this year compared to 2019, based on a sales-to-new-listings ratio (SNLR) of 51% compared to 30% last year. SNLR is a measure of market competition that compares demand to supply in an area. An SNLR between 40% and 60% implies that there is sufficient supply to meet demand in a region,or that the market is balanced. A buyers’ market exists when the SNLR is under 40% and competition favours buyers because available supply outpaces demand. 

It is worth noting however, that as in W03, in nearly every neighbourhood where median price remains under the $1M mark, housing competition conditions have tightened for buyers, and in favour of sellers. For example, in E10, and E11, the SNLR was 72% and 83%, meaning there is much more demand than available supply, resulting in a seller’s market. A seller’s market exists when the SNLR is higher than 60%. In 2019, both E10 and E11 exhibited balanced market conditions – where demand and supply dynamics were better balanced – with an SNLR 41% and 53% respectively.  

Of the 5 neighbourhoods where prices grew past the $1M mark since September 2019, 4 neighbourhoods are situated in the East End and 1 neighbourhood is in Toronto’s West End. They are: 

• W09 (Willowridge-Martingrove-Richview): $1,190,000 (+28% y-o-y)
• E03 (East York, Danforth Village): $1,161,500 (+21% y-o-y) 
• E05 (Steeles, L’Amoreaux, Tam O’Shanter-Sullivan): $1,061,500 (+18% y-o-y)
• E06 (Birchcliff): $1,071,500 (+18% y-o-y) and
• E07 (Milliken, Agincourt North): 1,016,500 (+21% y-o-y)

Our infographic below compares median home prices for detached houses across 35 City of Toronto neighbourhoods, and highlights the minimum down payment required to afford a mortgage. Further below, find a list of the top 5 neighbourhoods where the median home price for detached properties remains under $1M. 

 

 

Top 5 City of Toronto Neighbourhoods With the  Lowest Median Detached House Price

1. W03 (Rockcliffe-Smythe, Keelesdale-Eglinton West)

Median detached price: $875,000 (+13% vs. last year)

Down payment required: $62,500

Market condition in Sept 2020: SNLR 51% (Balanced Market)

Market condition in Sept 2019: SNLR 30% (Buyers’ Market)

2. E09 (Morningside, Woburn, Bendale)

Median detached price: $890,000 (+15% vs. last year)

Down payment required: $64,000

Market condition in Sept 2020: SNLR 51% (Balanced Market) 

Market condition in Sept 2019: SNLR 56% (Balanced Market)

3. W10 (Rexdale-Kipling, West Humber-Claireville)

Median detached price: $891,500 (+14% vs. last year)

Down payment required: $64,150

Market condition in Sept 2020: SNLR 52% (Balanced Market)

Market condition in Sept 2019: SNLR 59% (Balanced Market)

4. E04 (Dorset Park, Kennedy Park)

Median price: $918,000 (+15% vs. last year)

Down payment required: $66,800

Market condition in Sept 2020: SNLR 70% (Sellers’ Market) 

Market condition in Sept 2019: SNLR 51% (Balanced Market)

5. E10 (West Hill, Centennial Scarborough)

Median price: $967,000 (+15% vs. last year)

Down payment required: $71,700

Market condition in Sept 2020: SNLR 72% (Sellers’ Market) 

Market condition in Sept 2019: SNLR 41% (Balanced Market)

 

 

© 2015 – 2020 Zoocasa Realty Inc., Brokerage

Economists: Current BoC measures not enough to counter recession

Ephraim Vecina
Mortgage Broker News

A closer look at Canada’s off-the charts home sales activity in September

Clayton Jarvis
Mortgage Broker News

 Last week, CREA released its housing data for September 2020, with the headline number being a nationwide year-over-year increase in sales of 45.6 percent. It’s a colossal figure, but one that makes little room for nuance.

As many Mortgage Broker News readers are aware, there is no “Canadian housing market”, just a collection of distinct housing markets that happen to be in Canada. With that in mind, let’s take a look at where the action took place.

British Columbia

B.C.’s September was ridiculous: 11,368 residential transactions and a year-over-year increase in sales of 63.3 percent. According to data from the British Columbia Real Estate Association, the activity sent the average MLS residential sale price soaring compared to September 2019, when it was “only” $696,647. At the end of the month, the average MLS listing sold for $803,210.

“The provincial housing market had a record-setting September,” said BCREA Chief Economist Brendon Ogmundson. “Both total sales and average prices were the highest ever for the month of September as pent-up demand from the spring pushes into the fall.”

The average selling price ballooned by more than 15 percent year-over-year in seven different regions:

• Powell River (30.4 percent)
• Victoria (25.3 percent)
• Okanagan Mainline (20.6 percent)
• Kamloops (20 percent)
• South Okanagan (19.6 percent)
• Vancouver Island (15.6 percent)
• Fraser Valley (15.4 percent)

Active listings for September fell by 11.7 percent versus the year before.

The Prairies

Alberta had an uneven September sales-wise. Even in markets that experienced increased sales, prices did not respond the way they did in B.C.

Just over 1,700 units were sold in Calgary, making it the most active September since 2014. But the only asset class to actually see its benchmark price increase compared to last year was detached homes, where the average benchmark price, $488,800, improved by just 0.9 percent.

Sales in Edmonton leapt 35.5 percent year-over-year, led by a 42.8 percent increase in single-family sales. Single-family homes sold for an average of $440,020 in September, a 4.7 percent annual increase. The average condo price in the city, $232,237, rose by 6.7 percent.

Sales fell in Grande Prairie (21.1 percent decline) and Fort McMurray (5.8 percent), but they exploded in Lethbridge, where they were up 58.6 percent year-over-year.

Saskatchewan’s two largest markets both experienced impressive growth in both sales and average price. Saskatoon saw sales increase by 41.1 percent year-over-year, with the average sale price rising from $318,000 to $358,000 over the same period. In Regina, where complete September data was unavailable at time of writing, the number of firm sales in September was 28.7 percent higher than it was a year ago.

Sales in Winnipeg rose 57 percent compared to September 2019, smashing the previous record for the month and establishing new average prices of $352,010 for detached properties and $239,538 for condos. 

“We are witnessing unprecedented times and certainly our third quarter sales activity of over 5,500 sales is unrivalled from any previous quarter in WinnipegREALTORS history,” said Catherine Schellenberg, president of WinnipegREALTORS.

Ontario

Sales in Ontario were 41.9 percent higher in September than they were a year before. It was the first time sales for the month surpassed 25,000. Year-to-date, however, sales in the province were only up 2.7 percent compared to the same period in 2019.

The average resale selling price in Ontario was $741,395 in September, a 19.7 percent annual increase. But there were several regions where the average price spiked by far more than the provincial average: Northeastern Ontario (the Kawarthas, Barrie, Muskoka), where it rose by 32.8 percent; Eastern Ontario (Kingston, Ottawa, Cornwall), where it increased by 28.5 percent; and Western Ontario (Windsor, Chatham-Kent, London), where it grew by 26.6 percent.

Quebec

Add Quebec to the list of provinces that generated gaudy sales data in September. Sales in the province were 51 percent higher than a year before, bringing active listings down by 33 percent.

Quebec City, where condo and detached sales skyrocketed by 99 and 64 percent, respectively, led the way. Detached homes in the capital are now fetching a median price of $282,500, while condos are selling for just over $201,000.

Montreal proved it still has plenty of upside, with total sales climbing 42 percent year-over-year in September. Sales grew most in Laval (59 percent increase) and the North Shore (61 percent), where the median price for single-family homes, $429,950, and condos, $270,000, were 20 percent and 16 percent higher, respectively, than a year before.

Atlantic Canada

Every province east of Quebec set new sales records in September.

Moncton, where sales jumped just under 40 percent year-over-year, came out ahead of New Brunswick’s other major markets. The composite benchmark price for Moncton rose 13.7 percent in September, hitting $220,500 by month’s end. In Fredericton, where sales surged 34.4 percent, the average price of homes sold was $210,015, 22.6 percent higher than a year before. Sales increased by 27.1 percent in Saint John, helping push the average sale price to a record $205,247.

“Much like other parts of New Brunswick, Saint John’s usually busy fall market is experiencing significantly increased demand,” said Corey Breau, president of the Saint John Real Estate Board. “When you combine that with the lowest inventory numbers that we have seen in over a decade, it creates sustained upward pressure on prices.”

In Nova Scotia, after the market posted a 38 percent yearly increase in sales during the month, the provincial average sale price climbed to a record $303,599, the first time in history it broke $300,000.

Of the eight regions governed by the Nova Scotia Association of Realtors, five experienced year-over-year sales growth of 38 percent or more, with sales in Yarmouth increasing by an absurd 153.8 percent.

In Prince Edward Island, sales rose by 24.5 percent, while in Newfoundland they increased by 39.5 percent. The average price in PEI swelled by 17.2 percent to hit $274,619. In Newfoundland, it climbed a more modest 7.7 percent to reach $256,663.

 

Copyright © 2020 Key Media

Pretium, Ares to Purchase Front Yard in $2.4 Billion Deal

Patrick Clark and Prashant Gopal
Bloomberg

Pretium and Ares Management Corp. have agreed to purchase Front Yard Residential Corp. in a deal valued at $2.4 billion that would create the second-largest single-family landlord in the U.S.

Front Yard shareholders will receive $13.50 a share, a premium of about 36% over the closing price on Friday, according to a statement on Monday. The equity value of the deal is about $800 million.

Shares of Front Yard surged 35% to $13.45 in New York.

Wall Street has been plowing money into the single-family rental industry in recent months, betting on the demand for homes with more space in the suburbs. While record-low mortgage rates have fueled a housing rally, that’s driven up prices, possibly pushing homeownership out of reach for many.

That has investors looking at single-family rentals, which give residents who can’t afford to buy access to backyards and extra rooms for home offices. Blackstone Group Inc., Nuveen Real Estate, and JPMorgan Chase & Co.’s asset management arm have all made fresh bets on rental houses since the pandemic started.

“Across the country, you can see rent growth in single-family rental, increased demand, and a significant reduction in available home supply,” Don Mullen, Pretium’s chairman, said in an interview. “That turbocharged our confidence.”

Mullen, a former former Goldman Sachs partner, founded Pretium in 2012. It was part of an early wave of Wall Street firms to invest in single-family rental homes in the aftermath of the U.S. foreclosure crisis, building economies of scale that made sprawling portfolios of rental houses easier to manage.

Roughly three-quarters of Front Yard’s rental houses are in markets where Pretium has an existing footprint, allowing the firm to add density to its portfolio that should translate to higher quality services for renters and better margins for investors, Mullen said.

 

Deal Nixed

Amherst Holdings had announced a deal to buy Front Yard back in February for $12.50 a share, or about $2.3 billion. But the deal fell apart in May as the coronavirus roiled real estate markets. That announcement sent Front Yard’s shares spiraling lower.

While other single-family rental landlords have seen share prices recover from market lows in March, shares in Front Yard languished, leading shareholders to call for the company to liquidate itself. The stock had dropped 19% this year and closed Friday at $9.96.

Front Yard put itself on the block last year after settling with an activist investor. The landlord owns roughly 15,000 homes, making it an attractive target in an industry where efficiencies of scale are key.

Pretium has more than $16 billion in assets under management across residential real estate, mortgage finance, and corporate credit. Last year, it completed a $1.5 billion recapitalization of more than 20,000 houses acquired through an early single-family rental fund.

The new combined company would own and operate more than 55,000 homes across the U.S., making it the second-largest landlord in the industry.

Invitation Homes Inc., which owns roughly 80,000 houses, recently announced a new joint venture with a Boston-based firm to deploy more than $1 billion, including debt, to buy and renovate homes.

 

 

© 2020 Bloomberg

Diverging predictions for Metro real estate market

Joanne Lee-Young
The Province

The Vancouver real estate industry reported another month of higher sales and prices in September and continues to defy dire predictions of a pandemic-induced downturn.

But some analysts point out fragile aspects of the market, such as a rising condo inventory and falling condo prices.

The number of real estate sales in B.C. year-over-year in September increased 63 per cent. The average residential price in B.C. increased by 15.3 per cent compared to last year, and set a monthly record of $803,210. Total sales dollar volume in August increased 88 per cent compared to last year, according to the B.C. Real Estate Association, which represents real estate agents.

The Canada Mortgage and Housing Corp. has been in a high-profile clash with some in the real estate industry over its prediction of double-digit percentage price drops in markets such as Vancouver.

The federal government housing agency, which has tightened underwriting policies for high-ratio borrowers, has also been vocal about the danger of fuelling the stress of home ownership in expensive markets for buyers with uncertain financial prospects in a weak economy.

Now, with sales and prices rising, there continues to be agreement about a housing market cleaving in half, but disagreement about where this could lead.

“The overall housing market system seems to be dividing in two, and this is where risks start to appear,” said Aled ab Iorwerth, deputy chief economist at the CMHC.

He and others think that while prices are holding and rising, there are nuances such as falling rents, a growing preference for suburban over city locations, and extended economic weakness that could hit the condo market and pull down other house prices too.

“I think it’s still too early to be doing the happy dance. Condo prices are declining while house prices are moving higher. The result is a higher average sales price as the composition of homes selling has changed. It’s very much a mixed market and the potential fallout from deferred mortgages has yet to be realized as these deferrals are only beginning to expire,” said Vancouver realtor Steve Saretsky.

Saretsky adds there will be a record number of new condos completing this year and next. These are projects that were started during the building boom which began in 2016.

“That new construction is finally completing at a time when condo demand has slowed, and the rental market has softened. These are obvious risks that are contending with the lowest mortgage rates we’ve ever seen and a sea of liquidity provided by the Bank of Canada. Hence, the short- to medium-term direction of the market remains very much in flux.”

Realtor Ian Watt, who specializes in downtown Vancouver condos, where rising inventory has been more pronounced, said the median price in September decreased 10 per cent from THE previous month, and the median price decreased 14 per cent from September 2019.

Housing starts across B.C. in September hit 25,308, down from 33,100 during the same period in 2019.

However, that is comparing housing starts in 2019 that ended up reaching a record high of 44,932, even though most forecasts had been for the number at the end of the year to be around 35,000.

 

© 2020 Postmedia Network Inc. All rights reserved. 

Vancouver home sales up nearly 54% in mid-October as recovery continues

Sean MacKay
Livabl

As of the middle of October, 1,741 homes have changed hands in the Vancouver region, up nearly 54 percent from the first half of the month last year.

It’s a strong signal that the region’s housing market will deliver more remarkable figures by month end for October.

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The mid-month sales and new listings figures were published late last week by Dexter Realty Managing Broker Kevin Skipworth, who projected that over 3,000 homes are likely to be sold across the region by the end of the month if the current pace continues.

Skipworth noted that sales momentum picked up in the second half of September, suggesting the same dynamic could play out this month too.

There are, however, likely to be some changes to the headline numbers when comparing the exceptional September figures to October’s eventual home sales tally.

For one, there were more home sales in October 2019 than September 2019, meaning the percentage increase for October 2020 is likely to come down slightly from the previous month’s record-breaking results.

“Typically, October would have more sales than September – but of course in the year of COVID, there is no usual,” Skipworth said in his monthly data round-up email.

“We may not quite see the same level of sales to finish the month but buyers are still engaging and with the number of new listings less so far in October than we saw in September, competition continues to be strong – especially for detached homes,” he continued.

On the listings side, Skipworth said 3,060 new listings had hit the market as of October 15th, down from 3,385 new listings from the same point in September. This has caused the supply of total active listings to come down to 13,670 from 13,790 at the end of last month.

“While it was a September to remember, the real estate market could still be Mr. October after we finish the month,” Skipworth said.

 

© 2020 BuzzBuzzHome Corp.

Careful, pre-construction condo investors. Lenders don’t like funding assignments

Clayton Jarvis
Mortgage Broker News

Readers of Mortgage Broker News will be all too familiar with the pitch from realtors who specialize in pre-construction condo sales: Put down your deposit, sit back and watch as that piece of paper appreciates faster than any completed condo unit in the city. Don’t worry about paying those exorbitant monthly maintenance fees, either. You don’t even need to keep the condo; you can just flip it at its new value and walk away with a pile of cash.

There was a time when condo assignments were relatively easy feats, but those days are over. Pre-construction investors considering this classic, once tidy speculation strategy need to understand that assigning a condo unit to a second buyer is no longer the slam dunk it once was.

The reason is simple enough.

“The bank’s not going to finance it at the appraised value,” says Anthony Venuto of InTouch Mortgage Solutions. “They’re going to finance at the original purchase price – and not a dollar more.”

That’s a cold, hard dose of reality for both sides of the assignment equation.

Assume a pre-con investor purchased a condo in Vancouver for $600,000 in 2015. At time of completion in 2020, the unit is now “worth” $900,000. She finds a buyer who is willing to put down a deposit based on the new assumed value. The second buyer then goes out in search of financing, only to find that no lender he can find will fund the deal based on the new price.

The new buyer is stuck. He can’t come up with enough money to cover the difference between the current purchase price and what the bank will lend. And because a condition covering such a situation wasn’t baked into the agreement he signed with the seller and her lawyer, he could potentially lose his deposit.

The original purchaser is also in a fairly nauseating situation. Rather than quickly finding a buyer for what she feels is a hot piece of real estate, she is left once again looking for someone to take the property off her hands. While she does, she will need to assume the carrying costs for a property she never intended on keeping. 

According to The Mortgage Trail’s Jerome Trail, assignments were a far smoother proposition for investors six or seven years ago, when pre-construction units in the GTA were selling for around $200,000 and being assigned for approximately $300,000 upon completion. 

“In the beginning,” Trail says, “we could get them done. They would look at a $300,000 Agreement of Purchase and Sale and we would get the 80 percent loan-to-value.”

But within a year of the assignment boom, lenders slammed on the brakes.

“They began asking, ‘What exactly is the collateral here? The condo corporation has not registered. All you really have here is a piece of paper, and our mortgage is really not registered against anything, so we can’t do these anymore,’” Trail says.

Pain in the assignment

For assignments to take place today, Trail says sellers are required to get their builder or developer to agree to the assignment and to provide the original Agreement of Purchase and Sale. End-buyers will likely need to test the alternate lending space

“There are maybe only two banks that I know of, personally, who are doing assignments,” Venuto says.

Trail says alternative lenders like Home Trust may provide 70 to 75 percent of the new valuation, but the appraisal will be based on the opinion of the company’s own appraiser, not the market, and will therefore, as he puts it, “be conservative in nature”.

Lending on assignments becomes even less attractive in an environment where condo inventory is increasing and values are softening, a novel situation most condo investors didn’t see coming. For a variety of reasons – remote work that has made costly downtown living less necessary, extended lockdowns that have made condo life feel more like prison, the evaporation of short-term rental profits – COVID-19 is drinking the milkshake of Canada’s big city condo investors.

“Is it going to last two weeks? Is it going to last six months? Is it going to last two years? We don’t know,” Trail says. “All of a sudden, we have an asset class that’s no longer appreciating. The assignment sale problem is just going to increase if the values continue to come down.”

Because so many first-time buyers get their feet wet in the condo space, Trail says many of them may not know that they are involved in an assignment until it’s too late and lenders are shaking their heads “no” in unison. He says he asks his condo clients to show him a broker version of the MLS listing before an offer is placed “so we’re ahead of that curve.”

Because Canada’s single-family market has shown no sign of cooling, the condo space will likely become increasingly attractive to buyers priced out of the detached and attached sectors. With so many pre-construction buyers looking to assign their properties before their values erode, and so many realtors encouraging buyers to waive any and all conditions, Trail says it’s imperative that brokers step in to ensure their clients exercise extreme diligence before putting in an offer on new condos.

“If you’re not on top of it up front, you’ve got a whole slew of problems,” he says. “The bottom line is, there are so many things stacking up against these transactions that I barely know where to start.”

 

Copyright © 2020 Key Media

Vancouver real estate: record $500,000 bonus awaits realtor of buyer of $13.8 million condo in tower under construction

Carlito Pablo
The Georgia Straight

As far as realtor bonuses go, this could be one for the books.

A seller is offering a $500,000 bonus for an agent who can deliver a buyer for a $13,888,800 condo in downtown Vancouver.

The condo is one of 181 residential units in a 43-storey tower currently under construction.

The development known as Alberni is expected to be completed between 2021 and 2022.

The bonus will be on top of a commission, structured as: 3.22 percent on the first $100,000, and 1.15 percent on the balance.

The commission amounts to $161,791.

Plus the half-million-dollar bonus, the money on the table for a buyer’s agent totals $661,791.

The listing was tracked by Zealty.ca, a real-estate search website by Holywell Properties.

Adam Major of Holywell Properties explained to the Straight that the deal is a contract assignment.

According to Major, a contract assignment means that a buyer will transfer the contract to buy a property to someone else before the completion date.

In other words, the seller of this unit bought the condo during pre-sale, and is now trying to market the contract.

Major recalled that the Alberni sold out during pre-sale.

Major also noted that there are 21 units listed for sale in this condo development.

All of these listings are assignment of contract sales, Major added.

The managing broker of Holywell Properties said that the $500,000 bonus could be a record.

“This is the biggest bonus commission we have tracked on Zealty.ca and the biggest I have ever seen,” Major said.

Vancouver city council approved the rezoning application for the condo project on October 20, 2016.

The mixed-use tower with commercial uses on ground level is being built at 1550 Alberni Street.

Japanese architect Kengo Kuma designed the building for developer Westbank.

The tower features a curved silhouette.

Back to the $500,000 bonus plus commission, 3902-1550 Alberni Street measures 4,030 square feet.

The property is on the 39^th floor, and it has three bedrooms and four bathrooms.

It also comes with a private Japanese garden on the balcony, two parking spaces, and a locker.

The seller is represented by Angell, Hasman & Associates (Malcolm Hasman) Realty Ltd. 

 

 

© 2020 VANCOUVER FREE PRESS

Akimbo is Redefining the Skyline in Brentwood

Michelle Hopkins
REW

Burnaby’s first super prime tower offers a new level of luxury
Brentwood has really grown up. Today, this is a sought-after neighbourhood with great outdoor cafes, fabulous shopping, parks, trails, recreational amenities, and a historic business district, all within walking distance. This is where family-owned developer IMANI Development chose for its newest and arguably its most spectacular tower – Akimbo.
“Akimbo is the first super prime tower outside of downtown Vancouver and home buyers love it – they have made Akimbo the most successful tower launch since 2018,” says Cam Good, President of Key Marketing. “It’s a huge win, not just for IMANI, but for all of Metro Vancouver as all developers have now seen that investment in truly beautiful architecture pays off for the developer and is a wonderful gift to everyone who will enjoy looking at it for years to come.”

Nestled in one of Burnaby’s most livable, fastest growing urban communities, Akimbo is an architecturally stunning 40-storey luxury high-rise glass and concrete tower soaring against the backdrop of North Burnaby’s historic real estate district.
“Akimbo is the centre-point of the new and improved Brentwood and offers a wonderful walking and shopping experience to a high street, Brentwood Mall,” says Good. “Akimbo is just one block from Skytrain – not right up against the Skytrain station – and not too far to walk. Perfect.”
Perfectly positioned along quiet streets, Akimbo is an exclusive collection of 350 one, two and three-bedroom+ condos, ranging from 460 to 1,405 square feet of thoughtfully designed spaces.
As soon as you enter through a glass lobby showcased by stylish seating areas and 24-hour concierge services, you know you are in for timeless elegance and sophistication throughout.
Designed by award-winning IBI Group Architects, the attention to detail is second to none.
IMANI truly understands how today’s families and young professionals live. Inside these bright, airy residences there is a fusion of function and beauty – with high end laminate floors, nine-foot ceilings, air conditioning, floor-to-ceiling windows, waterfall countertops and a high-end Fisher&Paykel appliance package, including a fully integrated refrigerator to match the European-inspired cabinetry.

Residents will enjoy the spacious fourth-floor amenities area, showcased by a party room complete with kitchen, a sleek lounge for neighbourhood gatherings, a fully equipped fitness centre and guest suite. Watch those sunsets BC. Is known for from the outdoors courtyard with barbecue, dining area and children’s playground. “Akimbo was designed from the inside out with the right mix of perfectly square and efficient floor plans offering home buyers incredible functionality and value – all wrapped up in what will be at completion in just under three years – the architectural landmark of Burnaby,” says Good.
Akimbo is already more than 90 per cent sold. With prices starting at just under $600k for a one bedroom and larger homes including the two-bedroom for $835K, these will surely sell out quickly. Akimbo’s award-winning presentation centre, located at 2152 Douglas Rd., Burnaby, is open by appointment Saturday and Sunday from noon to 5 p.m. For more information, visit www.akimboliving.com or call 604-359-7728. Completion is set for 2023.

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