Housing minister says Vancouver ‘has done very well by us’

Mike Howell
Other

Housing Minister Rich Coleman says the provincial government will not contribute money to the city’s $1 billion plan to revitalize the Downtown Eastside over the next 30 years.
And his counterpart in Ottawa, Social Development Minister Candice Bergen, is leaving it up to Coleman’s government to make any spending decisions on federal money set aside for affordable housing in BC.
“We’re not going to be involved,” Coleman said in an interview. “It doesn’t meet any of our priorities or match up to anything we are doing.”
He said his government already committed $300 million to build 14 social housing buildings on city property, purchased more than 25 single-room-occupancy hotels to be renovated and supplies rent subsidies to Vancouver residents. The provincial government also regularly funds the city’s shelter program.
“This city has done very well by us,” he said.
Coleman’s comments come as city council prepares to review Wednesday the $1 billion renewal plan for the Downtown Eastside. The plan calls for $525 million from senior levels of government and nonprofits and an additional $245 million in fees from developers.
The most controversial piece of the plan calls for a condo-free zone in the Downtown Eastside Oppenheimer District, which is essentially a large chunk of the neighbourhood around Oppenheimer Park and runs west along the East Hastings corridor from Heatley to almost Carrall.
Developers have told the city’s director of planning, Brian Jackson, that only allowing social housing and rental units in the district will prevent revitalization and limit development.
Coleman said he favours a more integrated housing mix in the district, saying concentrating social housing in one area “stigmatizes the population.” He believes providing rent subsidies to people who live throughout the city is a better way to go.
“We find that we get way better social outcomes because people are integrated into the community and they’re not stigmatized by being put in to a single sort of location that says that’s where all the people on social assistance or whatever live,” he said. “You have to have integration.”
Last week, Coleman and Bergen agreed to extend both governments’ ongoing affordable housing fund, meaning another $300 million can be used for housing and rent subsidy programs in BC over the next five years.
The Vancouver Courier contacted Bergen’s office to ask whether the federal minister thought some of the money should be used to fund the Downtown Eastside plan. Bergen responded in an email saying BC has the “flexibility to use the funding to design and deliver programs that meet local needs and priorities.”
When told of Coleman’s lack of commitment to the plan, Mayor Gregor Robertson said the provincial government “needs to pay attention to the people who live in the Downtown Eastside.”
Robertson noted the success the city has had previously with the provincial government, having received money for the 14 social housing sites, the renovation of single-room-occupancy hotels and money for shelters.
“We need to continue making that progress,” the mayor told the Courier. “The community is making it clear that we need to go farther.”
A memo from city manager Penny Ballem to senior staff March 7 outlined the need for governments, developers and nonprofits to work together in order to achieve the plan’s outcomes.
“Based on the extensive work done, staff have confidence that the housing goals in the DTES community plan goals are achievable on the understanding that projects will require a sophisticated approach, in some cases additional form of financial support, and the involvement of multiple partners,” the memo said.
The plan calls for 4,400 new housing units in the Downtown Eastside and 1,650 rent subsidies. The city also wants another 3,350 social housing units to be built outside the Downtown Eastside.
Coleman estimated 4,400 units would cost $1.3 billion and operating costs of about $70 million per year. He said rental assistance for 10,000 families in B.C. costs about $50 million per year.
The Downtown Eastside has 18,500 residents, with up to 67 per cent considered low income, with a median household income of $13,691. Unemployment is at 12 per cent and more than 6,300 people receive social assistance.
 Copyright 2014

Michael Babad
Other

The Vancouver and Calgary housing markets are on fire in what a new report says is a more pronounced Canadian east-west divide.

Prices across the country rose 0.3 in February from January, and 5 per cent from a year earlier, according to the Teranet-National Bank house price index released today.

The pricey city of Vancouver set a record for the fourth consecutive month, while home prices in Calgary set a fresh high for the first time since September, 2007, according to the report.

Today’s reading may well get tongues wagging again over the Canadian housing market.

But, as The Globe and Mail’s Tara Perkins reports, some of the pessimists who have signalled a bubble may be using flawed measures.

According to today’s report, Canadian prices are again at a record, though only Vancouver and Calgary set new highs among the 11 cities measured, with prices up 7.7 per cent from a year earlier in the former, and 9.6 per cent in the latter.

Other gains:

• Toronto, up 6.1 per cent over the 12 months
• Edmonton, up 5.3 per cent
• Hamilton, up 5 per cent
• Winnipeg, up 3.5 per cent
• Montreal, up 1.9 per cent

Prices fell almost 5 per cent in Halifax, 0.6 per cent in the Ottawa area, 3.4 per cent in Victoria and 2 per cent in Quebec City.

Victoria is something of a special case, given that prices have declined for 12 months in a row, though they rose 0.9 per cent in February alone to end a string of erosion. For Quebec City, it was the first drop in 15 years.

Notable, too, is that February’s reading marked the first time since October, 2009, of “price deflation in at least four of the regions covered.”

Also notable is that the report cited how the “east-west dichotomy became more pronounced than ever” last month, with prices up in all of the five western markets measured, while Montreal stood alone in central and western Canada with an increase.

On a monthly basis, prices slipped 0.1 per cent in Toronto, 0.8 per cent in Ottawa, and 1.7 per cent in Quebec City and Halifax.

“The fact that the national housing market is not homogeneous is highlighted by the fact that the national composite index is at a record level while there is price deflation in four out of the 11 regions covered,” said economist Marc Pinsonneault of National Bank.

“The latter situation has not been seen since the aftermaths of the last recession, 4 ½ years ago,” he added.

Mr. Pinsonneault broke down those regions into three categories: Ontario and west, but for Victoria and Ottawa, with markets “either hot or balanced,” some areas east of Ontario where “markets are rather favourable to buyers,” and, third, Victoria, where “price deflation has prevailed for the last few years.”

Economists generally expect Canada’s housing market to cool, but in soft-landing fashion.

“Price increases are still outpacing income gains by a wide margin in many markets, a situation we deem unsustainable in the longer run,” economic analyst Sonny Scarfone of Toronto-Dominion Bank said of the Teranet-National report.

“A low supply of new listings remains a key contributor to upward pressures on real estate prices,” he added.

As well, he noted how headline numbers can skew results and hide divergence within a city.

“Indeed, larger real estate markets such as the Greater Vancouver and the Greater Toronto Area are made up of several different markets with varying fundamentals,” Mr. Scarfone said.

“For example, in Toronto, we still see robust price gains in single-detached homes and low-rise units, while the high-rise segment will increasingly be exposed to a rising level of supply. Accordingly, we expect a disproportionate amount of the cooling in home prices to stem from the condo market.”

© Copyright 2014 The Globe and Mail Inc.

Geraldine Santiago
Other

I’ve seen it, heard it, read it everywhere: “Capacity is needed.” The demand for mid-rise housing continues to increase throughout Metro Vancouver as more residents want affordable choices for family living. Developers and builders are seeking options.

BCStats projects that by 2035, 768,600 more people will be living in the Lower Mainland, with 145,735 more within Vancouver’s city limits alone. That’s a growth rate of 1.3 per cent per year.

How does our area meet this demand? Densification.

As a long-term real estate agent in Metro Vancouver, I’ve seen this trend gaining momentum. It used to be that just your location within Metro Vancouver dictated your property’s value. Now it’s a combination of the associated lot size, zoning and future development potential.

The region is creating transit-oriented communities. It can be expected that single family homes within .5 KM of a rapid transit hub may be rezoned to allow greater density to make way for townhouses, row homes, or even mixed-use towers.

In my experience, if you buy a property and don’t consider how zoning and subdividing the lot over time could affect its future value, you might be missing out on a tremendous investment opportunity. And if you are looking to sell, seize the opportunity to learn about zoning and subdividing in order to optimize your property’s value.

Zoning and Real Estate Sellers

Do you know your property’s zoning options?

The reality is that Vancouver needs more housing options, and the only direction to go is up. Consider how high a developer can build on a lot to accommodate mid-rise, duplex, triplex and row housing relative to the zoning bylaws within a particular area in Metro Vancouver.

Zoning not only refers to the division of land into two parcels, it can include consolidation of two or more parcels into a single site, the adjustment of an existing property line or dedication of land for road or lane purposes.

The City of Vancouver is divided into zoning districts with their own particular zoning bylaws. For details on each district, you need to check the Zoning and Development Bylaw and any official development plan bylaws that may apply to that area.

Land use is divided into “Outright” or “Conditional.” Outright land uses are those permitted providing that all the regulations are met. Conditional refers to land uses that have impact on the community and must meet numerous government-specified criteria before being approved.

The key to properly valuing your lot is clearly understanding its full potential and best use. This includes factors such as your property’s Floor Space Ratio (FSR).

FSR is calculated by taking the floor area of a building on a lot and dividing it by the area of the lot. Depending on your zoning, FSR maximums can vary from .65 to 1.45. For example a property in Kitsilano, zoned RT-8, with a 33 x 127 square-foot lot has a total of 4,100 square feet. The outright FSR is .5 with a conditional increase to 0.75. Therefore, depending on the FSR, this lot could have a structure from 2,095-3,143 square feet built on the property.

Other important questions to consider before listing your property for sale include: Do you know your property’s permitted use? Do you know which properties in your neighbourhood have applied to rezone their property?

Due to the complexity of zoning bylaws, partnering with your listing agent to maximize your property’s value has become more important than ever. If you don’t take advantage of your area’s zoning laws and its future development potential, and promote them relative to your lot, you could easily undervalue your property.

Zoning and Buyers

Future value should also be a part of how a property is assessed when purchasing.

If you are a first-time home buyer, you can invest in a property to sell it in a short period of time with a high rate of return if there is infrastructure being built around it. Think of your property’s appreciation and anticipation. Anticipation is created by the expectation of benefits to be derived in the future. Home buyers may anticipate that a property in a certain neighbourhood will be in demand in the next five years, and may be motivated to purchase the property for future development.”

This trend could translate into increased real estate values for properties located around transit hubs and lesser values of properties that are located farther away, due to the increase in supply over time.

Whether you’re buying or selling, look for the market potential of the property five years from now. Consider where new transit lines, roads and amenities are being built, and how this will influence the property’s future value.

You can find out more about your city’s zoning plans at these links:

• Vancouver
• District of West Vancouver
• City of North Vancouver
• City of Richmond
• Port Coquitlam
• City of Burnaby
•  City of Surrey

© 2014 Real Estate Weekly

Vancouver’s Chinese community seemed to harbor wealthy real estate investors that would gain citizenship and move their family here even though they would still reside and do most of their business in China. In early February, 2014 the Federal Government

Other

In early February, 2014 the Federal Government of Canada decided to reform its immigrant investor program. Ian Marlow from the Globe and Mail reported on Tuesday, February 11 that many Canadians criticized the program as a way for wealthy foreigners to purchase citizenship without residing here. Vancouver’s Chinese community seemed to harbor wealthy real estate investors that would gain citizenship and move their family here even though they would still reside and do most of their business in China.

The immigration investor program granted foreigners with a net worth of $1.6 million or more, residency and possibly even citizenship. The applicant would have to first lend the Canadian government $800,000, which would be reimbursed within 5 years without interest.

Ryan Rosenberg, a local immigration lawyer noted that Vancouver has turned into a “bedroom community for the world,” where foreign investors generate the majority of their income and pay taxes in in other countries although their families are here. And some of the families even qualify for social assistance. “They would drive to their free ESL classes in their $80,000 Mercedes,” said Mr. Rosenberg.

Vancouver Point Grey real estate authority Sam Huang said, “Many people are afraid the cancellation of Canada’s investor program will mean rich immigrants will no longer come to Canada. The fear is that this will translate into less demand in high-end real estate, like Point Grey homes.” Point Grey is one of Vancouver’s oldest and most renowned neighbourhoods. The neighbourhood is widely sought after by foreign investors and immigrating families for its safety, peaceful atmosphere, and convenience to both downtown Vancouver and the University of British Columbia.

“There may be a short term effect on Point Grey real estate,” says Huang, “but if there is a dip in the market it will come from weakened confidence rather than an actual decrease in demand. Certainly there will be less immigrants coming and buying less real estate. However, the effect will be minimal. From my experience, wealthy individuals don’t necessarily to have immigrant to Canada to buy real estate. High net worth individuals often have properties in many counties, for example, Hong Kong, Canada, and the United States. In the long run, the price of real estate in Point Grey and Vancouver will continue to rise in spite of the cancellation of the immigration investor program.”

PRWEB

Other

Vancouver Developer Acquires Reputable Alberta Business for 200 Million

VANCOUVER, BRITISH COLUMBIA, Mar 7, 2014 (Menafn – Marketwired via COMTEX) –Anthem Properties Group has acquired Calgary based United Communities. United Communities is a leading residential land developer that entitles, develops and sells finished lots to home builders in Calgary, Edmonton and Sacramento, California. In addition, the company operates a home building division in Sacramento. United employs about 40 people, has completed over 20 major communities and has developed over 23,000 serviced lots in the last two decades.

Anthem Properties Group is a 175 person real estate investment, development and management company operating in Western Canada. Noteworthy Alberta projects undertaken by Anthem include Waterfront, a series of luxury high rise towers in Eau Clair on the Bow River; Erlton Village, a TOD mixed use project at 25th Ave. and MacLeod Trail; the recently remediated Molson Brewery site in Edmonton, a brown field project; and the completely rebuilt North Town Centre at 137th Ave. and 97th St. in North Edmonton.

Anthem pursued the investment in United to:

–Increase its exposure to Alberta
–Instantly secure a strong Alberta talent pool
–Add residential land development as a core strategic asset
–Return to its roots as a land developer
–Gain a foothold in the U.S. market through the Sacramento operation

Anthem’s plans for United include:

–Operating it as a sister business to Anthem under the name United
Communities
–Retaining the management team as is, with the exception of CEO Don
Douglas, who is stepping down and assuming the role of Chairman Emeritus
–Maintaining the same strategy followed by the former owners
–Rigorously pursuing growth opportunities together with existing joint
venture and financial partners
–The addition of the United Communities business with its separate
management organization complements Anthem’s existing asset base and
management platform without duplication or redundancy.

Said Don Douglas, “I am happy to transfer ownership of United to Anthem and look forward to supporting Eric, who will be taking over as CEO, and who will be working with the same great United team that I had the privilege of working with all these years.”

Eric Carlson, incoming CEO of United and existing CEO of Anthem said, “Anthem is delighted with its investment in United Communities. I am eager to work with the United team and its partners in pursuit of United’s existing successful development strategy.”

Anthem pursued the investment with assistance from Kingsett Capital of Toronto, DBB Investments of Vancouver, and parent company Anthem Capital, also of Vancouver.

The Anthem portfolio, located throughout Alberta and British Columbia, is currently comprised of over 3.5 million square feet of commercial space, 40 acres of urban and suburban land held for future development, and approximately 3,500 residential condominium units either in the design development stage or under construction. Anthem has invested in, developed, and or managed, alone or in partnership, over 210 projects, in virtually all asset classes, with a cumulative historical value of approximately 2.5 billion.

© 2000 menafn.com

Garry Marr
Other

Could developers faced with a glut of condominiums turn to apartments?

Real estate brokerage Rock Advisors Inc. is predicting that the number of purpose-built apartments will grow in 2014 as developers look elsewhere for income.

“Everything that a condominium developer does can be applied to the building of apartments,” says Derek Lobo, chief executive of Rock Advisors, in a release.

He says purpose-built rental apartments avoided the 2008 recession and continue to outperform all other sectors of the real estate market. “Purpose-built rental apartments give such developers an ongoing revenue stream if they hold onto a building and rent out the units rather then selling the building for a quick buck,” said Mr. Lobo.

He noted the 36,186 housing units started in Toronto were up from the month before and he says apartments starts have helped bolster the housing market.

Mr. Lobo maintains heated housing markets will do better as people pursue apartments as an alternative to home ownership.

“The heated housing markets are why apartments will do better in 2014,” says Mr. Lobo. “More and more Canadians are finding the high cost of home ownership isn’t what it’s cracked up to be. Even with condominiums, the cost of maintaining a mortgage and paying condominium fees presents an ownership premium of 10% over what it costs to rent an apartment.”

© 2014 National Post

Other

Credit Suisse, one of the top 10 largest private real estate investors in the world, soon will break ground on a $200-million LEED Platinum office tower in Vancouver.

“Normally, we would invest in a fully developed, leased property,” says Rainer Scherwey, director at Credit Suisse Real Estate Asset Management. “This office tower represents the first time in North America that we are confident enough to build a major project from the ground up.”

The 31-storey office tower, The Exchange, will be built in the heart of the financial district.

“We are negotiating with a number of tenants at the moment and expect to make announcements soon,” says Mark Renzoni, president & CEO of CBRE, the leasing brokerage for the development.

“As the global economy recovers, Vancouver is one of the strongest office markets in North America,” says Mark Chambers, senior VP of Cushman & Wakefield. “The downtown Vancouver office market currently sits at near-record low vacancy rates, with mounting pressure on availability of quality space.”

Until recently, the City of Vancouver was projecting a critical shortage of office space by 2031 if land-use policies remained the same. With a new Metro Core Jobs & Economic Land Use plan in place, there are now seven new office towers under construction downtown, creating 2.18-million square feet of new office space. More than half of that space is already pre-leased, says Credit Suisse.

The development will include Canada’s first LEED Platinum heritage conversion, as the neighbouring Old Stock Exchange building (circa 1929) will be renovated and restored as part of The Exchange. It is slated for completion in 2016.

Copyright © REM 2014

Other

The Bank of Canada announced this morning that it is maintaining its target for the overnight rate at 1 per cent. In its accompanying statement, the Bank noted that the economy is preceding largely on the path the Bank projected in its January Monetary Policy Report. While inflation and growth were slightly higher than expected in the fourth quarter of 2013, the Bank expects slack in the economy to keep inflation below the Bank’s 2 per cent target this year. The Bank does not view the risks associated with elevated household imbalances as materially changed and judges the current stance of monetary policy, with the overnight rate at 1 per cent, as appropriate.

Speculation of an impending rate cut by the Bank of Canada has receded in recent weeks following a modest acceleration of inflation and stronger than expected economic growth. The uptick in inflation and growth is in part due to a sharply lower Canadian dollar and, while not explicitly targeting a lower value of the loonie, policymakers at the Bank have welcomed the decline in the dollar. A depreciation in the currency tends to be inflationary and impacts consumer prices in fairly short order while traditional monetary policy, through adjusting the overnight interest rate, impacts inflation only with a significant lag of 12 to 18 months. With the lower loonie helping to pull inflation higher, we expect the Bank will likely maintain its target rate at 1 per cent until 2015 when economic conditions may require a gradual increase in the overnight rate.

Mike Howell
Other

The Downtown Eastside is expected to get a massive facelift over the next 30 years that will see thousands of new social housing units, more business spaces and a tree-lined East Hastings Street.

But the $1 billion cost of revitalizing the area that includes Chinatown, Gastown and Strathcona relies heavily on senior levels of government to buck up in a big way.

The city’s proposed new community plan for the Downtown Eastside, which goes before city council March 12, calls for $530 million from the provincial and federal governments.

City manager Penny Ballem told the Courier after a media briefing Thursday that she recognizes the plan will only work with buy-in from Victoria and Ottawa.

“We have to remember it’s over 30 years; we’re not asking for that tomorrow,” Ballem said. “Are we absolutely confident that we’re going to get [the money]? No, but I think we feel much more comfortable that we actually have a very robust and coherent plan. We have very good evidence and justification of why the need is there and it’s very much quantifiable.”

The city has had some success in recent years in working with the provincial government which provided more than $200 million to build 14 social housing buildings on city property.

The federal government has contributed money to projects in the Downtown Eastside but no longer has a national housing strategy.

“But I think it’s fair to say that over the past five years, the prime minister is starting to signal that he understands,” Ballem said. “I would say we’re very hopeful but we certainly at this point have no guarantees. But we think we’re in a much better position with a great plan.”

Of the $1 billion cost of the plan, the biggest expense is $820 million for housing. At least $50 million would come from the city and $245 million from developers, leaving senior levels of government to cover $525 million.

In 2005, the city produced a housing plan for the Downtown Eastside that Vision Vancouver Coun. Andrea Reimer said will deliver “significant numbers of housing units in the next 10 years, even if there is no further investment from the federal government or the province.”

Reimer said “fierce advocacy” is really the only pathway the city has to convince senior levels of government of the need to invest in Vancouver.

“That’s what it took to get the province to the table and I expect it’ll be the same thing that gets the federal government to the table,” she said.

The plan calls for 1,300 new social housing units, another 3,100 units to replace single-room occupancy hotels and new housing for families.

The realities driving the plan are found in the Downtown Eastside’s well-documented poverty statistics: Of the 18,500 residents, up to 67 per cent are considered low income, with a median household income of $13,691.

Unemployment is at 12 per cent with more than 6,300 people on social assistance. The plan also calls for affordable childcare, access to nutritious affordable and culturally appropriate food, increase access to quality health, social and community services, improved arts and culture facilities and upgrades to cycling and pedestrian routes.

©  2014  Copyright   Black Press