William Boei
Sun

A hoped-for migration of young construction workers back to British Columbia has not materialized and that’s one reason the home-building industry can’t keep up with demand.

In fact, experts say B.C. is on the threshold of a demographic squeeze that will have us scrambling for skilled workers for as long as 40 years.

Canada Mortgage and Housing Corp. reported Monday that housing starts in Greater Vancouver fell by 24 per cent in June from the same month last year, and that the home-building industry doesn’t have the capacity to keep up with demand.

As recently as last winter, some building industry officials were predicting construction workers who left during a slump in the 1990s would come trooping back for the biggest building boom in B.C. history.

But it’s not happening. The rest of Canada is too prosperous. Ontario, Alberta and B.C. are all flirting with all-time-low unemployment rates and the competition for skilled labour is fierce.

“People aren’t moving back into B.C. because they’ve got good-paying jobs where they are,” said Maureen Enser, executive director of the Urban Development Institute, which represents large developers.

“Some are coming back, but we’re not holding out hope that there’s going to be droves of them.

“We are working at full capacity. The challenge is the number of skilled workers we have to work on these projects.”

The home-building industry will face a second wave of competition for labour as Olympic venues and large public transportation projects are built between now and 2010.

“If there is a big increase in development in non-residential sectors,” said Tom Hutton, a professor in the University of B.C.‘s School of Community and Regional Planning, “it’s bound to have an impact on what’s going on in housing.

“We are going to see more competition [for construction labour] between these sectors,” Hutton said.

We’re seeing only the beginning of the problem, said demographer David Baxter of the Urban Futures Institute.

As baby boomers increasingly take early retirement, the labour force will start to shrink and we’ll have to look to more immigration for fresh blood, Baxter said. But most immigrants with skills now head directly for Ontario‘s manufacturing sector.

B.C.’s labour shortages can be expected to “really bite” in about 18 years, when the biggest slice of the baby boom hits retirement age. In all, labour shortages can be expected to continue for the next 35 to 40 years, Baxter said.

“We might as well get used to it.”

In the meantime, Enser said, it’s going to be “a real challenge” to keep housing prices affordable in Greater Vancouver.

“It’s the cost of land, it’s the cost of labour, it’s regulatory costs, all of those things are aggravations to house prices. How do we keep housing costs so that the average family can afford a decent place to live?”

Downtown Vancouver’s building boom will end soon because all the big pieces of land are taken. But in the rest of Vancouver, the density of residential neighbourhoods can be increased with more townhouses and duplexes.

Burnaby Mountain has been opened to development and that will help, but Enser said developers are looking east.

“In the future we’re going to have to look further east — Mission, Abbotsford, the Langleys, those are the areas where you’ll see more growth in the single-family market.”

© The Vancouver Sun 2005

B.C. leads the nation in total investment in non-residential construction

Joanne Lee-Young
Sun

Investment in non-residential construction in B.C. is growing faster than anywhere else in Canada, a trend that is breaking some records.

B.C. posted a 19.1-per-cent jump in total investment in non-residential buildings, reaching a new high of $932 million in the second quarter of this year compared to the same period in 2004, Statistics Canada reported Monday. This pace beat out Alberta, where such investments topped $1 billion for the first time, but only grew at 13.4 per cent.

In both B.C. and Alberta, investment in commercial buildings is starting to rise due to the construction of office buildings and shopping centres, according to Statistics Canada.

“We are just at the start of an unprecedented period of construction activity in B.C. We haven’t seen these [non-residential construction] numbers ever before in the history of B.C. in terms of the dollar values,” Keith Sashaw, president of the Vancouver Regional Construction Association, said.

Across the country, non-residential construction in B.C. cities posted some of the biggest percentage increases from the first to second quarter of this year. Abbotsford reported a 78.3-per-cent increase; Victoria posted a 37.3-per-cent increase; and, Vancouver recorded a 19.3-per-cent increase, bulging $92 million to $569 million for the largest dollar volume change of all metropolitan areas surveyed. Elsewhere, only Calgary, at a 20.4-per-cent increase, and Saskatoon, at a 35.3-per-cent increase, showed comparable growth. However, both cities recorded considerably smaller dollar volume changes at $75 million and just $14 million, respectively.

While residential construction may start to show some initial signs of slowing growth in B.C., non-residential building seems to be at the beginning of an upswing.

“The return of the strong market in the residential sector preceded the non-residential by about two years,” Sashaw said.

We began to see a strong turnaround in the residential construction towards end of 2002 and into 2003, when it really began to kick into high gear. It went very quickly and throughout the province. But it’s only been in the last eight months or so that we have seen a resurgence in the non-residential sector.”

The non-residential sector is divided into industrial buildings, such as mines and mills used for manufacturing and processing; commercial buildings like retail stores and warehouses, plus everything from hotels to funeral parlours; and institutional and government buildings.

Much of the growth in B.C.’s institutional sector is being attributed to an aggressive capital spending campaign by the province’s ministries of education and advanced education. From April to May alone, the value of institutional building projects almost tripled to $109 million, mainly due to spending for the construction and expansion of schools and major universities. In Vancouver, the dollar value of permits for institutional and government buildings increased 140 percent, dwarfing similar figures for commercial and industrial buildings at only 76 and 71 percent, respectively, year-on-year from January to May, according to the VRCA.

At Stuart Olson Construction Inc. in Richmond, executive director Ron McFee says that 75 to 80 per cent of the company’s gross annual revenue now comes from non-residential construction. “It would have been different two years ago. Practically, there has been a huge upsurge, specifically on the institutional side.” Stuart Olson is involved with two major science facility projects at Simon Fraser University and three at the University of British Columbia.

While Statistics Canada said that in both B.C. and Alberta, investment in commercial buildings is starting to rise due to the construction of office buildings and shopping centres, McFee said that the “commercial side of things has not recovered wholly, but it is starting to climb as vacancies, especially downtown, start to climb.”

Even with Stuart Olson’s heavy emphasis on non-residential construction these days, “we haven’t landed a commercial [deal] yet, but we are looking and are confident that the economy is going to be robust and will drive the commercial engine.” As this happens, McFee says he expects ongoing challenges both in recruiting skilled labour and management, as well rising prices for materials.

Michael Citrome
Province

MONTREAL — Interest-only mortgages have been getting a lot of buzz in the U.S. of late and are now available in Canada.

The pitch is simple: An interest-only mortgage lets you buy the same house as you would with an ordinary mortgage, but the monthly payments are significantly lower. It frees up your income to spend elsewhere.

The interest-only mortgage is available here from Mortgage Intelligence Inc., a mortgage broker with offices across the country. But don’t pick out your penthouse loft just yet. There’s more to interest-only mortgages than meets the eye.

First, a little Mortgage 101.

A conventional home mortgage is just a loan using your house as collateral. A mortgage payment is made up of two elements — interest and principal. At the beginning of a conventional mortgage, your payments are mostly interest. At the end, they’re mostly principal. But in an interest-only mortgage, your payments do not include any principal. This means that, as long as your mortgage is interest-only, you’ll never get any closer to fully owning your home.

Interest-only mortgages have no amortization period. That’s where the problems start.

Let’s say you use an interest-only mortgage with a five-year term to buy more house than you can really afford. In five years, you’ll have to renegotiate your interest rate. If rates have gone up, so will your payments.

If real-estate prices hold steady or drop and you choose to sell, you may actually lose money.

Interest-only mortgages are an effective tool for buying more home than you could otherwise afford, especially if you know that in five years you’ll be making a lot more money than you do now. But for too many people, interest-only mortgages might seem like an opportunity to gamble on the housing market.

© The Vancouver Province 2005

Tony Gioventu
Province

Warm, moist weather is a breeding ground for all types of insects that infest our homes, but at what point to strata corporations take a vested interest in pest control and the interior conditions of a strata lot? An owner in Northern B.C. recently passed away with no apparent family or friends left behind. The strata corporation wasn’t sure how to proceed because the owner had always refused inspection of the apartment. The strata had to ensure the premises were secure and there was no risk of damages to the building. They were met with their own little shop of horrors to discover the owner had stored debris and garbage in the apartment for years. The place was swarming with flies and creepy insects. With the permission from the public trustee, the strata contracted a service to remove the debris, fumigate and restore the apartment.

Strata law: Strata owners must avail themselves or their homes for the inspection of the strata lot when the strata corporation gives proper notice. If owners or their tenants do not agree, they may be fined and potentially held liable for any costs that are incurred if the parties do not allow access. If there are damages that the corporation cannot repair because an owner refuses access, the corporation may have to obtain a court order to complete the necessary repairs. Ultimately, owners may bear the burden of the expenses.

Tips: Routine inspections are best performed by a qualified technician or trade on an annual basis with plenty of notice given to owners.

Tony Gioventu is executive director of the Condominium Home Owners’ Association. E-mail [email protected]

© The Vancouver Province 2005

Jeani Read
Province

And now for something completely different.

They’re calling it Six in the City, after Sex and the City, and sexy is definitely a very good word to describe this whole venture.

So is sweet. So is dreamy. Suffice to say the buzz on the street about the new Metroliving development(s) is very hot so far, with lots of sales right off the bat to a diverse group from the edgy-art-crowd buyers to internationally based marketing execs.

What’s so different and seductive? Townline, usually a suburban developer, is making a big splash downtown doing the opposite of what most downtown developers do. It’s creating six small-scale complexes with separate esthetics, from funky-cool to haute-exclusive. These are about as far from the typical urban-tower concept as can be. Comparative low-rises (tallest is eight storeys), they are planned to be intimate and boutique-y. They range from totally refitted Vancouver classic heritage buildings to brand-new structures that take up small infill lots in the city.

This lends a special cachet to the addresses. The idea is to create spaces that counter the anonymous, impersonal high-rise mentality with designs that encourage interaction and a sense of community. It’s a sophisticated lifestyle for sophisticated city dwellers.

And the toys — oh, my. Six in the City has the hottest stuff. Just imagine sitting in your living room, pressing a button and having your whole window wall lift off the floor and into the ceiling like an automatic garage door, opening the room directly onto your terrace, deck or patio. Not all suites will have this cooler-than-cool item, but the specially designed and developed Metroliving Zap 800 Garage Door will be available in select homes in each building. And the parking concept is just inspired — kind of New York- inspired, actually. Some complexes will have car elevators to lift you and your vehicle to your secure parking spot, as these great little buildings are standing in some tight spots.

The great finishings are all on display in the presentation centre. Premier among them, if you had to pick, would probably be the McMaster Building, the white-bricked warehouse/office building at 1180 Homer, built in 1910. In its reincarnated form it will feature the (gorgeous) reclaimed and refinished hardwood fir planking throughout, original brick walls, and high ceilings and beams. In the kitchens, Meile and SubZero appliances, mahogany cabinetry, granite counters and backsplashes are to die for and, in the bathroom, marble counters with sharp-looking square undermount sinks, undermount cast-iron soaker tubs with marble surrounds and frameless glass showers. It goes on, and rumours swirl about who may have bought that $2 million-plus penthouse with the private roof deck — was it Diana Krall or was that just gossip?

Meantime, if this style is not exactly yours, you could pick from a lot of others. That cool kitchen with the stainless-steel backsplash in what looks like mini-subway tiles, double stainless sink and the spectacular high arc of the Blanco commercial faucet of 1168 Richards. Or the pick-your-colour glass backsplash, Bosch appliances and clean white quartz counters of 531 Beatty.

CREDIT: Wayne Leidenfrost, The Province Metroliving has a sexy city feel to it with stainless subway tiles in the kitchen (above left), a spot for the cappuccino machine (right) and a brick wall that lends a trendy touch to the living room (below).

CREDIT: Wayne Leidenfrost, The Province Metroliving has a sexy city feel to it with stainless subway tiles in the kitchen (above left), a spot for the cappuccino machine (right) and a brick wall that lends a trendy touch to the living room (below).

Three addresses have been released, the rest likely by September, with all kinds of events planned to lure already-eager buyers. They’re doing a brisk business here with people who love being in the heart of the city but won’t settle for less than the best when it comes to their homes.

Is that you?

[email protected]

Quick Facts

WHAT: Metroliving is 197 homes in six buildings in downtown Vancouver.

WHERE: 1241 Homer, 1168 Richards, 999 Seymour, 540 Beatty, 531 Beatty, 1180 Homer.

DEVELOPED BY: Townline Homes.

SIZES: One-bedroom suites to three-bedroom-plus-solarium penthouses, 540 sq. ft. — 2,827 sq. ft.

PRICES: $272,900 – $2.3 million

OPEN: Suite 100 – 1050 Homer St., daily except Fridays, 604 682-1050.

© The Vancouver Province 2005

Province

If you’re lucky enough to enjoy a fabulous view from your office window, sharing it is the decent thing to do.

That’s what Randall Golhof and his business partner, Kathryn Torvick of Telemark Systems, have been doing for almost 10 years.

Randall and Kathryn are the operators of Vancouver’s original viewcam — possibly the first one in Canada.

Since February 1996, Internet users from around the world have been “visiting” Vancouvervia their website, which features a spectacular view of the BurrardBridge and English Bay. The high-resolution image updates every five minutes.

The Kat Kam’s galleries contain hundreds of jaw-dropping English Bay sunsets — and, naturally, the occasional Burrard Bridge fender-bender.

“We’ve even had the odd pictures of a police takedown,” says Randall.

Kathryn says she keeps the camera rolling because her hobby helps promote Vancouver tourism. “The e-mails are mostly from people who’ve been here and loved it and just want to groove on the memories,” she says.

The Kat Kam also serves a practical function for commuters who need to check out traffic flow on the bridge and also for boaters and pilots who want to see a live image of the marine skies.

“People also write to me and say I’ve got a son or daughter at [the University of B.C.] and it’s wonderful to be able to see exactly where they are and to feel a little more connected to them,” says Kathryn.

Check out the view and links to other B.C. viewcams at www.katkam.ca.

Kim Pemberton
Sun

IT’S NO SECRET: WE’RE A GREAT PLACE TO LIVE

We know it, but the word is spreading. Vancouver was described as one of the “primate cities” or “places where the world’s well-off want to live or visit regularly,” according to a June 12 article in The New York Times.

The article, headlined “Real Estate, the Global Obsession,” examined the worldwide housing boom, particularly areas experiencing significant price hikes. Besides Vancouver other top hot spots include London, Paris, New York, Boston, Shanghai, San Francisco, Miami and Sydney.

BEST FOOT FORWARD: WALKING TOURS ARE HERE AGAIN

The Architectural Institute of B.C. has begun its annual Vancouver walking tours, giving participants the opportunity to experience a different flavour of the city. The six routes include: Victory Square and Gastown: Where the City Began; Chinatown: Yesterday and Today; Strathcona: Neighbourhood of Change; False Creek North and Yaletown: Industrial to Residential; The West End: The Manhattan to Mole Hill; and The Downtown Business Core: Modern and Contemporary.

All tours cost $5 per person, take approximately 1.5 hours to complete and run rain or shine. Vancouver tours begin either at the Architecture Centre (440 Cambie Street) or at other specified points in the downtown area at 1:00 p.m., Tuesday through Saturday. Call (604) 683-8588 for more information.

HABITAT FOR HUMANITY STARTS PHASE 3 OF PROJECT

There are over 13,000 households on social housing waiting lists across B.C. and about 10,000 are families with children, according to Habitat for Humanity Society of Greater Vancouver. The non-profit organization, which is beginning phase 3 of an affordable housing project on Government Street in Burnaby, reminds readers in its recent newsletter over 43 per cent of B.C. renters pay more than 30 per cent of their household income on rent. While Habitat for Humanity is only able to help a handful of families achieve affordable housing the endeavour is still worthwhile. To get involved, with either a commitment of time or to make a financial donation call 681-5618. See photos on page I13.

© The Vancouver Sun 2005