June 2011 B.C. Economic Fundamentals
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Port Moody station development brings up privacy concerns
The developer behind The Station, Port Moody`s latest mixed-use condo project planned for St. Johns
Street, is asking the city for an expansion on the project, a matter that will be debated at a public hearing June 14.
Aragon Properties` formal request to city council is to amend the zoning at the 2718-2732 St. Johns St. site to allow for a new floor-space ratio of 3.0 instead of the previously approved 2.98. This would increase the overall size of The Station by 690 sq. ft.
But the real issue for debate is the movement of an amenities room from the Moody Street side of the building to the rear, overlooking Spring Street. Aragon is also asking for a communal balcony to be built off the amenities room.
Read the full article here.
The developer behind The Station, Port Moody`s latest mixed-use condo project planned for St. Johns
Street, is asking the city for an expansion on the project, a matter that will be debated at a public hearing June 14.
Aragon Properties` formal request to city council is to amend the zoning at the 2718-2732 St. Johns St. site to allow for a new floor-space ratio of 3.0 instead of the previously approved 2.98. This would increase the overall size of The Station by 690 sq. ft.
But the real issue for debate is the movement of an amenities room from the Moody Street side of the building to the rear, overlooking Spring Street. Aragon is also asking for a communal balcony to be built off the amenities room.
Read the full article here.
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Metro Vancouver may be hit with a second carbon tax
Any move to fund TransLink expansion with carbon tax revenue would be by creating a new "regional carbon tax" that would be charged in addition to the existing one, according to Transportation Minister Blair Lekstrom.
He was responding to NDP questions in the legislature last week after Premier Christy Clark indicated the government would consider using a share of carbon tax revenues ` a longstanding request from the regional mayors council.
Lekstrom, however, said the province won't share revenue now collected through the current carbon tax but would instead consider creating a second Metro Vancouver-only version.
Read the full article here.
Any move to fund TransLink expansion with carbon tax revenue would be by creating a new "regional carbon tax" that would be charged in addition to the existing one, according to Transportation Minister Blair Lekstrom.
He was responding to NDP questions in the legislature last week after Premier Christy Clark indicated the government would consider using a share of carbon tax revenues ` a longstanding request from the regional mayors council.
Lekstrom, however, said the province won't share revenue now collected through the current carbon tax but would instead consider creating a second Metro Vancouver-only version.
Read the full article here.
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Evergreen Line has landed - a little bit
It`s one small step for Port Moody and one giant leap of faith for the Evergreen Line.
The Evergreen Line project board asked Port Moody city council last week to sign off on making a tiny 2.5 sq. m sliver of land a municipal right-of-way to accommodate the future construction of the Evergreen Line.
Council voted unanimously in favour of the plan last Tuesday, marking TransLink`s very first acquisition of land in Port Moody for a municipal right-of-way for the Evergreen Line, according to city spokesperson Leslyn Johnson.
Read the full article here.
It`s one small step for Port Moody and one giant leap of faith for the Evergreen Line.
The Evergreen Line project board asked Port Moody city council last week to sign off on making a tiny 2.5 sq. m sliver of land a municipal right-of-way to accommodate the future construction of the Evergreen Line.
Council voted unanimously in favour of the plan last Tuesday, marking TransLink`s very first acquisition of land in Port Moody for a municipal right-of-way for the Evergreen Line, according to city spokesperson Leslyn Johnson.
Read the full article here.
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Frothy Vancouver housing market fueled by money from China
The rising price tags on luxury houses on Vancouver's west side are a sign of China's expanding wealth as Chinese mainland buyers seek a home for cash in the face of real estate investment curbs at home.
There is no reliable data on how much Chinese money is flowing to Vancouver, but industry watchers say enough has gone into several high-end neighborhoods to skew Canada's national real estate data.
Local stories abound about cash buyers, who won't be vulnerable when interest rates rise, and of bids that far exceed the asking price.
"Placing the money is really what they're doing. They're parking it, like in a bank," said Cam Good, president of TheKey.com, which markets Canadian property to Chinese buyers and recently opened its second China office.
Read the full article here.
The rising price tags on luxury houses on Vancouver's west side are a sign of China's expanding wealth as Chinese mainland buyers seek a home for cash in the face of real estate investment curbs at home.
There is no reliable data on how much Chinese money is flowing to Vancouver, but industry watchers say enough has gone into several high-end neighborhoods to skew Canada's national real estate data.
Local stories abound about cash buyers, who won't be vulnerable when interest rates rise, and of bids that far exceed the asking price.
"Placing the money is really what they're doing. They're parking it, like in a bank," said Cam Good, president of TheKey.com, which markets Canadian property to Chinese buyers and recently opened its second China office.
Read the full article here.
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B.C. growth to slip slightly: BMO report
British Columbia`s economy is expected to cool this year from 2010 but will still put in a strong performance led by Asian export demand and strong energy investment, according to a BMO report released Wednesday.
Further, BMO says Asian buyers, flush with cash and eager to own land, will likely be the main driver of the Vancouver real estate market.
The BMO Blue Book, a joint publication by BMO Capital Markets Economics and BMO Commercial Banking, forecasts B.C. growth this year of three per cent compared with four per cent in 2010. Canada`s overall growth is expected to slip to 2.8 per cent as the economy shifts from recovery to mature expansion, BMO forecasts.
Read the full article here.
British Columbia`s economy is expected to cool this year from 2010 but will still put in a strong performance led by Asian export demand and strong energy investment, according to a BMO report released Wednesday.
Further, BMO says Asian buyers, flush with cash and eager to own land, will likely be the main driver of the Vancouver real estate market.
The BMO Blue Book, a joint publication by BMO Capital Markets Economics and BMO Commercial Banking, forecasts B.C. growth this year of three per cent compared with four per cent in 2010. Canada`s overall growth is expected to slip to 2.8 per cent as the economy shifts from recovery to mature expansion, BMO forecasts.
Read the full article here.
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Chinese key target in Vancouver condo push
TORONTO (Reuters) - In Vancouver, Canada's hottest real estate market, one marketer is targeting Chinese buyers with a new get-a-deal spin on condos.
Sales and marketing firm The Key launches an online real estate venture later this month, offering week-by-week discounts. The first one promises savings of C$200,000 ($206,000) if a buyer snaps up two condos rather than one.
Its target market is Chinese investors, who have already driven up prices for multimillion dollar homes in a few Vancouver neighborhoods.
"They'll do whatever they have to do to get a deal. They're going to be a huge group ... and getting a better deal than they could ever get on their own," said The Key President Cam Good, who says his special offer web site is modeled on daily deal service Groupon.
Read the full article here.
TORONTO (Reuters) - In Vancouver, Canada's hottest real estate market, one marketer is targeting Chinese buyers with a new get-a-deal spin on condos.
Sales and marketing firm The Key launches an online real estate venture later this month, offering week-by-week discounts. The first one promises savings of C$200,000 ($206,000) if a buyer snaps up two condos rather than one.
Its target market is Chinese investors, who have already driven up prices for multimillion dollar homes in a few Vancouver neighborhoods.
"They'll do whatever they have to do to get a deal. They're going to be a huge group ... and getting a better deal than they could ever get on their own," said The Key President Cam Good, who says his special offer web site is modeled on daily deal service Groupon.
Read the full article here.
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Vancouver primed for housing correction: BMO
Vancouver`s housing market looks primed for a correction, according to a report from BMO Nesbitt Burns, with the average house now costing `an astounding` 11.2 times a family`s average income -- more than double the national average.
But senior economist Sal Guatieri said there`s hope that any drop in prices could be less severe than previous corrections -- `if interest rates stay low and wealthy immigrants continue to pour into the city, prices could stabilize sooner than in past downturns.`
The city has seen four corrections in the last 30 years -- in 1981-82 (-30 per cent), 1990-91 (-14 per cent), 1995-96 (-20 per cent) and 2008-09 (21 per cent). Even so, the average house has gained 21 per cent in the last year, or a whopping 188 per cent in the last decade and was worth $815,000 at the end of April.
Read the full article here.
Vancouver`s housing market looks primed for a correction, according to a report from BMO Nesbitt Burns, with the average house now costing `an astounding` 11.2 times a family`s average income -- more than double the national average.
But senior economist Sal Guatieri said there`s hope that any drop in prices could be less severe than previous corrections -- `if interest rates stay low and wealthy immigrants continue to pour into the city, prices could stabilize sooner than in past downturns.`
The city has seen four corrections in the last 30 years -- in 1981-82 (-30 per cent), 1990-91 (-14 per cent), 1995-96 (-20 per cent) and 2008-09 (21 per cent). Even so, the average house has gained 21 per cent in the last year, or a whopping 188 per cent in the last decade and was worth $815,000 at the end of April.
Read the full article here.
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Vitoria's vacancy rate defies trend
Vacancy rates in Canada's 35 major centres have decreased, but Victoria's rate has increased slightly.
It has gone from 2.5 per cent last April to 2.7 per cent this year in private structures with three or more apartments.
Overall in B.C., the apartment vacancy rate rose to 3.7 per cent from 3.1 per cent last April.
However, "vacancy rate is not a reflection of the housing market," said Al Kemp, CEO of the Rental Owners & Managers Society of B.C.
The study is only done in April and October and does not look at all apartments in the city. There are also condominiums for rent in Victoria that do not get accounted for in the study, he said.
Read the full article here.
Vacancy rates in Canada's 35 major centres have decreased, but Victoria's rate has increased slightly.
It has gone from 2.5 per cent last April to 2.7 per cent this year in private structures with three or more apartments.
Overall in B.C., the apartment vacancy rate rose to 3.7 per cent from 3.1 per cent last April.
However, "vacancy rate is not a reflection of the housing market," said Al Kemp, CEO of the Rental Owners & Managers Society of B.C.
The study is only done in April and October and does not look at all apartments in the city. There are also condominiums for rent in Victoria that do not get accounted for in the study, he said.
Read the full article here.
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Kelowna rental properties sit vacant
Seems home renters in Kelowna have more choice than most cities in Canada. The vacancy rate in Kelowna has almost doubled, from 3.7 percent last year to 6.6 percent in 2011. "There's a lot of investor-owned condominiums currently available for rent and we're seeing more secondary suites come available as well," says Paul Fabri of Kelowna's Canada Mortgage and Housing Corporation office. He adds many renters have also decided to get out of the rental market altogether and buy a home instead.
Meanwhile, the CMHC expects the cost of rent in Kelowna to stay steady until the end of the year. "Through the mid- and late-2000's we sa rental rates moving higher," says Fabri, "with the vacancy rates increasing, we've seen that upward pressure on rent pretty much disappear," he adds. Fabri says with many economists expecting the Canadian economy to improve next year, he predicts a rise in rental rates in 2012 to meet the demand.
Kelowna's vacancy rate is one of the highest in the country, tied with Abbotsford at 6.6 percent. It is behind only Windsor, Ontario at 9.4 percent.
Read the full article here.
Seems home renters in Kelowna have more choice than most cities in Canada. The vacancy rate in Kelowna has almost doubled, from 3.7 percent last year to 6.6 percent in 2011. "There's a lot of investor-owned condominiums currently available for rent and we're seeing more secondary suites come available as well," says Paul Fabri of Kelowna's Canada Mortgage and Housing Corporation office. He adds many renters have also decided to get out of the rental market altogether and buy a home instead.
Meanwhile, the CMHC expects the cost of rent in Kelowna to stay steady until the end of the year. "Through the mid- and late-2000's we sa rental rates moving higher," says Fabri, "with the vacancy rates increasing, we've seen that upward pressure on rent pretty much disappear," he adds. Fabri says with many economists expecting the Canadian economy to improve next year, he predicts a rise in rental rates in 2012 to meet the demand.
Kelowna's vacancy rate is one of the highest in the country, tied with Abbotsford at 6.6 percent. It is behind only Windsor, Ontario at 9.4 percent.
Read the full article here.
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Recreational property market gains steam; local buyers pushing Whistler sales
VANCOUVER - Canada`s recreational property market is gaining serious traction with local buyers providing a strong push to Whistler sales this spring.
The 2011 Re/Max Recreational Property Report, which examined sales and trends in 46 markets across the country, concluded that an upswing in demand from coast to coast is partly attributed to recovering stock portfolios in major centres.
Greater affordability, increased selection and pent-up demand are other key factors driving the market, the report said.
Read the full article here.
VANCOUVER - Canada`s recreational property market is gaining serious traction with local buyers providing a strong push to Whistler sales this spring.
The 2011 Re/Max Recreational Property Report, which examined sales and trends in 46 markets across the country, concluded that an upswing in demand from coast to coast is partly attributed to recovering stock portfolios in major centres.
Greater affordability, increased selection and pent-up demand are other key factors driving the market, the report said.
Read the full article here.
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Finding a rental unit still difficult
Nanaimo's rental housing vacancy rate nudged up in April to 5%, a small bump from the same time period last year.
So why am I still living in a motel?
The rate increased from 4.3% in April 2010, partly due to more renters becoming homeowners, said Travis Archibald, an analyst with the Canadian Mortgage and Housing Corporation, which compiles the statistics twice per year.
"Over the last couple of years, just because of the historically low mortgage rates, people have been taking advantage of that," said Archibald.
"The other thing is, we're seeing more secondary suites."
The benchmark vacancy rate is based only on private apartments throughout a city. Province-wide, the vacancy rate stood at 3.7% in April 2011, up from 3.1% a year prior. Among the 27 census areas surveyed, Squamish, at 18.5%, recorded the highest rate, while Parksville, at 0.9%, was the lowest.
Read the full article here.
Nanaimo's rental housing vacancy rate nudged up in April to 5%, a small bump from the same time period last year.
So why am I still living in a motel?
The rate increased from 4.3% in April 2010, partly due to more renters becoming homeowners, said Travis Archibald, an analyst with the Canadian Mortgage and Housing Corporation, which compiles the statistics twice per year.
"Over the last couple of years, just because of the historically low mortgage rates, people have been taking advantage of that," said Archibald.
"The other thing is, we're seeing more secondary suites."
The benchmark vacancy rate is based only on private apartments throughout a city. Province-wide, the vacancy rate stood at 3.7% in April 2011, up from 3.1% a year prior. Among the 27 census areas surveyed, Squamish, at 18.5%, recorded the highest rate, while Parksville, at 0.9%, was the lowest.
Read the full article here.
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Multi-family starts surge as detached-home construction drops
British Columbians appear to be increasingly biting the price bullet and forgoing the dream of owning a single detached home.
A Canada Mortgage and Housing Corp. survey released Wednesday concluded that multi-family housing starts are surging across the province -especially in Metro Vancouver -while sales of detached homes are falling.
And it's all about realistic expectations in an expensive housing market, according to Greater Vancouver Home Builders' Association president and CEO Peter Simpson.
Read the full article here.
British Columbians appear to be increasingly biting the price bullet and forgoing the dream of owning a single detached home.
A Canada Mortgage and Housing Corp. survey released Wednesday concluded that multi-family housing starts are surging across the province -especially in Metro Vancouver -while sales of detached homes are falling.
And it's all about realistic expectations in an expensive housing market, according to Greater Vancouver Home Builders' Association president and CEO Peter Simpson.
Read the full article here.
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Goldilocks and Vancouver real estate: 'This is too hot!'
Sales of resale homes in Canada were basically flat in May, compared to April, falling by less than 1 per cent, though they gained on the year by 2.7 per cent, The Globe and Mail's Julien Russell Brunet reports today.
Prices climbed 8.6 per cent from a year earlier, but the Canadian Real Estate Association said the national average of $376,817 was skewed by strong sales in "selected pricey" areas of Vancouver and broad price increases in Toronto, where supply is still tight given demand.
Remove Vancouver, CREA said, and the year-over-year price increase was 5.6 per cent. Take out Toronto as well, and it was 3.7 per cent.
Read the full article here.
Sales of resale homes in Canada were basically flat in May, compared to April, falling by less than 1 per cent, though they gained on the year by 2.7 per cent, The Globe and Mail's Julien Russell Brunet reports today.
Prices climbed 8.6 per cent from a year earlier, but the Canadian Real Estate Association said the national average of $376,817 was skewed by strong sales in "selected pricey" areas of Vancouver and broad price increases in Toronto, where supply is still tight given demand.
Remove Vancouver, CREA said, and the year-over-year price increase was 5.6 per cent. Take out Toronto as well, and it was 3.7 per cent.
Read the full article here.
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Clean technology emerges as drive of B.C. economy
VANCOUVER - The clean technology sector is emerging as a strong, positive force in the British Columbia economy, according to a new report from KPMG
The accounting and consulting firm says there are 202 "pure play" clean tech firms in B.C., and they will generate $2.5 billion in revenue in 2011 -before spinoff economic benefits are factored in.
That's a 57-per-cent increase in revenue compared with 2008, KPMG said in the report, which will be released today in Vancouver at an "energy roundtable" that looks at clean technology as "an engine of economic growth."
Read the full article here.
VANCOUVER - The clean technology sector is emerging as a strong, positive force in the British Columbia economy, according to a new report from KPMG
The accounting and consulting firm says there are 202 "pure play" clean tech firms in B.C., and they will generate $2.5 billion in revenue in 2011 -before spinoff economic benefits are factored in.
That's a 57-per-cent increase in revenue compared with 2008, KPMG said in the report, which will be released today in Vancouver at an "energy roundtable" that looks at clean technology as "an engine of economic growth."
Read the full article here.
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B.C.'s exports lag in the U.S., but surge in China
B.C.'s export picture is changing dramatically, and not entirely for the better.
The much stronger Canadian dollar and the effects of the recession on the American economy mean the province's exports to the United States in 2010 were down sharply from a decade earlier.
Although our exporters are selling much more to China and, to a lesser extent, to South Korea, our sales in other markets are either growing only slowly, stalled or sliding back a bit. And, with the exceptions of China, Japan and South Korea, the trade volumes are not very impressive.
Read the full article here.
B.C.'s export picture is changing dramatically, and not entirely for the better.
The much stronger Canadian dollar and the effects of the recession on the American economy mean the province's exports to the United States in 2010 were down sharply from a decade earlier.
Although our exporters are selling much more to China and, to a lesser extent, to South Korea, our sales in other markets are either growing only slowly, stalled or sliding back a bit. And, with the exceptions of China, Japan and South Korea, the trade volumes are not very impressive.
Read the full article here.
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Shale gas: B.C.'s got it in the Horn River region
Everyone knew that British Columbia's Horn River basin contained a lot of natural gas trapped in its finicky shale formations, now new research is beginning to delineate just how much.
The National Energy Board and B.C. Ministry of Energy and Mines released a report today that indicates the Horn River holds 78 trillion cubic feet of gas, more than double B.C.'s known conventional reserves and enough to fuel Canada's domestic gas needs for 26 years, assuming the NEB's estimate of Canadian gas consumption at three trillion cubid feet per year.
Now we know we have it though, the question is, what to do with it?
Companies such as Encana Corp. have spent hundreds of millions of dollars staking the rights to drill in the Horn River region.
Read the full article here.
Everyone knew that British Columbia's Horn River basin contained a lot of natural gas trapped in its finicky shale formations, now new research is beginning to delineate just how much.
The National Energy Board and B.C. Ministry of Energy and Mines released a report today that indicates the Horn River holds 78 trillion cubic feet of gas, more than double B.C.'s known conventional reserves and enough to fuel Canada's domestic gas needs for 26 years, assuming the NEB's estimate of Canadian gas consumption at three trillion cubid feet per year.
Now we know we have it though, the question is, what to do with it?
Companies such as Encana Corp. have spent hundreds of millions of dollars staking the rights to drill in the Horn River region.
Read the full article here.
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Analyst shrugs off housing market saturation fears
Golden trowel in hand, Victoria Mayor Dean Fortin put the ceremonial finishing touch on a concrete wall at one of the city`s latest high-density developments.
At 14 storeys in the sky, Fortin smoothed the wet concrete atop the 834 on Johnson Street, saying, `This is the type of project we need to see more of.`
At 115 units, the 834 is just one in a series of high-density developments popping up in the region at a time when the numbers show a cooling housing market.
Read the full article here.
Golden trowel in hand, Victoria Mayor Dean Fortin put the ceremonial finishing touch on a concrete wall at one of the city`s latest high-density developments.
At 14 storeys in the sky, Fortin smoothed the wet concrete atop the 834 on Johnson Street, saying, `This is the type of project we need to see more of.`
At 115 units, the 834 is just one in a series of high-density developments popping up in the region at a time when the numbers show a cooling housing market.
Read the full article here.
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'Respectable' hiring climate predicted for Victoria
Twenty per cent of Greater Victoria employers, in all sectors, plan to hire in the third quarter of 2011, according to a survey.
Manpower Group asked a range of employers whether they planned to add or subtract employees in the third quarter, or keep the status quo.
Read the full article here.
Twenty per cent of Greater Victoria employers, in all sectors, plan to hire in the third quarter of 2011, according to a survey.
Manpower Group asked a range of employers whether they planned to add or subtract employees in the third quarter, or keep the status quo.
Read the full article here.
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Enbridge pipeline project a hard sell to north-central B.C first nations
Despite offering a nearly $1-billion benefits package, which includes a 10 per cent ownership stake, Enbridge continues to struggle to gather First Nations' support in north-central B.C. for its $5.5-billion Northern Gateway pipeline.
The picture emerges in a 424-page report filed with the National Energy Board this week, an update from Enbridge on consultations with First Nations during 2010 and early 2011.
There are nine First Nations in north-central B.C. which appear not to have rejected outright the project, but another half a dozen First Nations are refusing to meet with the company to discuss the project.
The controversial pipeline is meant to open up new markets in Asia for crude from the Alberta oilsands.
The company report says that First Nations like the McLeod Lake Indian Band, north of Prince George, and the Lheidli T'enneh First Nation, just east of the city, have engaged in discussions with the Calgary-based company with an interest in learning about economic opportunities. The two First Nations have also participated in meeting with Enbridge on pipeline construction and safety.
Read the full article here.
Despite offering a nearly $1-billion benefits package, which includes a 10 per cent ownership stake, Enbridge continues to struggle to gather First Nations' support in north-central B.C. for its $5.5-billion Northern Gateway pipeline.
The picture emerges in a 424-page report filed with the National Energy Board this week, an update from Enbridge on consultations with First Nations during 2010 and early 2011.
There are nine First Nations in north-central B.C. which appear not to have rejected outright the project, but another half a dozen First Nations are refusing to meet with the company to discuss the project.
The controversial pipeline is meant to open up new markets in Asia for crude from the Alberta oilsands.
The company report says that First Nations like the McLeod Lake Indian Band, north of Prince George, and the Lheidli T'enneh First Nation, just east of the city, have engaged in discussions with the Calgary-based company with an interest in learning about economic opportunities. The two First Nations have also participated in meeting with Enbridge on pipeline construction and safety.
Read the full article here.