Fraser Valley Townhome & Industrial Markets Continue To Grow
(June 19, 2015
)
Fraser Valley Home Hunter Market Update:Townhomes:
Industrial construction activity rises, Fraser Valley townhome sales strengthen. That is an understatement and in particular for the Langley, Maple Ridge, Pitt Meadows, South Surrey and White Rock areas.
As we have previously discussed, townhomes were a previously underserved product and market in the Fraser Valley. However, with land values increasing year after year and Metro Vancouver prices only fueling the demand we continue to forecast strong growth in this sector as well as of course detached homes. Conversely, we also continue to forecast continued tepid demand and sales in the condominium markets.
Industrial squeeze:
Surveying the latest industrial market reports, it seems that there’s no time like the present to jump into the market.
The current wave of industrial construction, set to complete this year, is occurring on land that cost little relative to where values have soared in recent years.
“As developers replenish their land banks, that historical cost advantage, which helped offset rising land prices, will be exhausted and costs will inevitably rise."
The current wave of industrial construction, set to complete this year, is occurring on land that cost little relative to where values have soared in recent years.
“As developers replenish their land banks, that historical cost advantage, which helped offset rising land prices, will be exhausted and costs will inevitably rise."
With Metro Vancouver pricing itself out of most of the market our real estate team at THE BC HOME HUNTER GROUP (BCHH) very bullish on the Fraser Valley.
Greenfield sites are rare while brownfield sites require expensive remediation on top of the land value.
This means owner-occupiers who want to acquire premises and control occupancy costs had best do so now, by buying either existing freehold buildings or strata-titled properties that suit their needs.
Yet strata transactions were down in the first quarter of 2015, and while seasonal factors were partly to blame.
“There’s lots of new construction becoming available throughout 2015, but after that it’s a little bit up in the air." "There’s not a whole lot of strata planned beyond 2015, and there’s a large market for it, so you’re going to have to see an increase in pricing.”
Investment steady:
It is being reported that Vancouver bucked the national trend of lower investment volumes in the first quarter of the year, with an 80% increase in aggregate values, adding up to more than $1.25 billion worth of investment sales.
Activity was led by private Canadian investors, who continued to drive market activity countrywide with “an unusually high” 52.5% of acquisitions." While land sales dominated, accounting for more than a quarter of the investment, industrial investment was the runner-up, at $236.1 million.
Greenfield sites are rare while brownfield sites require expensive remediation on top of the land value.
This means owner-occupiers who want to acquire premises and control occupancy costs had best do so now, by buying either existing freehold buildings or strata-titled properties that suit their needs.
Yet strata transactions were down in the first quarter of 2015, and while seasonal factors were partly to blame.
“There’s lots of new construction becoming available throughout 2015, but after that it’s a little bit up in the air." "There’s not a whole lot of strata planned beyond 2015, and there’s a large market for it, so you’re going to have to see an increase in pricing.”
Investment steady:
It is being reported that Vancouver bucked the national trend of lower investment volumes in the first quarter of the year, with an 80% increase in aggregate values, adding up to more than $1.25 billion worth of investment sales.
Activity was led by private Canadian investors, who continued to drive market activity countrywide with “an unusually high” 52.5% of acquisitions." While land sales dominated, accounting for more than a quarter of the investment, industrial investment was the runner-up, at $236.1 million.
While industrial investments were down slightly from the last quarter of 2014, overall volumes “continue to be at near peak levels."
The lack of available assets is driving prices, and some good-sized deals are coming together for later this year.
“The market is good, upward price pressure is pervasive, and demand is well in excess of supply,” he said. “[It’s] not a whole lot different from a year ago.”
Townhome sales strong:
Three weeks ago, it was noted that townhomes were among the housing types helping to boost density in White Rock.
Townhomes account for upwards of 70% of new home sales in the Fraser Valley as a whole.
“As the cost of single-family housing has greatly increased and supply has become more limited, the townhome has become more acceptable,” the report states. “Based on a recent survey of 40-plus industry leaders, 96% of those surveyed believe the townhouse sector will continue to advance to meet the growing consumer demand.”
Research by Vancouver-based market research firm Urban Analytics Inc. indicates that the first three months of 2015 saw more townhomes sold than in any quarter in the past five years.
On the resale side, Real Estate Board of Greater Vancouver statistics indicate that townhome sales rose to 3,084 units in the first five months of 2015 from 2,253 in the same period of 2014. The benchmark price in the board’s area rose 6.4% from a year ago and now sits at $501,000.
Similarly, townhome sales in the Fraser Valley Real Estate Board’s jurisdiction topped 2,305 during the period, up from 1,273 during the first five months of 2014. The benchmark price was $303,100, up 2% from a year ago.
For the Lower Mainland as a whole, the benchmark price is now $415,500.
If you or anyone you know are considering the purchase or sale of any real estate don't hesitate to call, text or email our real estate team anytime, 604-767-6736.
ShareCategories
Archives
- May 2022 (1)
- November 2021 (2)
- October 2021 (3)
- July 2021 (1)
- March 2021 (1)
- April 2020 (1)
- January 2020 (1)
- October 2019 (1)
- September 2019 (1)
- August 2019 (1)
- June 2019 (1)
- April 2019 (1)
- December 2018 (1)
- August 2018 (1)
- July 2018 (1)
- June 2018 (1)
- April 2018 (1)
- March 2018 (1)
- February 2018 (2)
- January 2018 (2)
- December 2017 (1)
- November 2017 (2)
- October 2017 (2)
- August 2017 (3)
- June 2017 (3)
- April 2017 (3)
- March 2017 (3)
- February 2017 (1)
- January 2017 (3)
- December 2016 (4)
- November 2016 (2)
- October 2016 (3)
- August 2016 (3)
- July 2016 (1)
- June 2016 (3)
- April 2016 (3)
- March 2016 (3)
- February 2016 (10)
- January 2016 (5)
- December 2015 (1)
- November 2015 (4)
- October 2015 (3)
- September 2015 (1)
- August 2015 (3)
- July 2015 (3)
- June 2015 (10)
- May 2015 (4)
- April 2015 (9)
- March 2015 (3)
- February 2015 (5)
- January 2015 (12)
- December 2014 (7)
- November 2014 (13)
- October 2014 (13)
- September 2014 (9)
- August 2014 (4)
- July 2014 (10)
- June 2014 (12)
- May 2014 (10)
- April 2014 (5)
- March 2014 (23)
Subscribe To This Blog
© 2004. An independently owned and operated broker member of Sutton West Coast Realty. Each office independently owned and operated.
Sutton and Sutton West Coast are service marks of Sutton West Coast Realty and are used herein under license. Mandeep Sendher is the licensed realtor at The BC Home Hunter Group and though he is not the owner of any BCHH domains, trademarks, branding or content he assumes 100% responsibility for any and all online and offline print material, artwork, reports etc. MANDEEP SENDHER is responsible for all problems and issues including this web site or other BCHH social media platforms or electronic communication.
All photos, artwork and materials are assumed to be in the public domain unless otherwise stated. Copyright claims will be honored upon specific identification of material and immediately dealt with upon request.
The content of this website is protected by copyright law. All rights reserved. Unauthorized use in any way, shape or form is prohibited. Information is deemed reliable but is not guaranteed. Maximum care has been put into the accuracy of the content, but specifications and details should be verified by the parties involved in transactions, and we are not liable for any losses whatsoever incurred as a result of information on this website.
You are not permitted to post on or transmit to or from this web site any unlawful, threatening, libellous, defamatory, obscene, inflammatory, pornographic or profane material, or other content that could give rise to civil or criminal liability under the law.
This web site does not grant you any rights to use our trademarks, service marks, logos, artwork or trade names. The content on this site is protected by copyrights, trademarks and service marks, other intellectual property laws, and other laws and regulations.
The design, layout, graphics, photography are copyrighted and the property of THE BC HOME HUNTER GROUP, and may not be reproduced and/or used for any purposes whatsoever, without written consent. THE BC HOME HUNTER GROUP does not claim to own the rights to any or all artwork, designs, photographs etc, found on this web site or any other or any social media unless otherwise stipulated.
BCHOMEHUNTER.COM
VANCOUVERHOMEHUNTER.COM
FRASERVALLEYHOMEHUNTER.COM
NORTHVANCOUVERHOMEHUNTER.COM
WHITEROCKHOMEHUNTER.COM
LANGLEYHOMEHUNTER.COM
CLOVERDALEHOMEHUNTER.COM
WESTVANCOUVERHOMEHUNTER.COM
PITTMEADOWSHOMEHUNTER.COM
BURNABYHOMEHUNTER.COM
COQUITLAMHOMEHUNTER.COM
DELTAHOMEHUNTER.COM
MAPLERIDGEHOMEHUNTER.COM
PORTMOODYHOMEHUNTER.COM
SURREYHOMEHUNTER.COM
SOUTHSURREYHOMEHUNTER.COM
FORTLANGLEYHOMEHUNTER.COM
MORGANHEIGHTSHOMEHUNTER.COM
604LIFE.COM