October 2012 B.C. Economic Fundamentals

[Ally]

BC sawmills are humming again






After half a decade of depression, British Columbia sawmills are once again humming and forest companies are in the black, hitched to the twin trains of China's appetite for B.C. wood and improving U.S. housing demand.




"From what we can see, this looks like a solid recovery," Gerry Van Leeuwen, vice-president of the Vancouver research firm Wood Markets, said of the U.S. housing market. "The builders and the lumber dealers (in the U.S.) are pretty excited. They think this is for real; that the recovery is really happening."




Read the full article here.

 

[Ally]

Canfor sees workers returning as Radium sawmill reopens




As Canfor Corp. prepares to restart its Radium sawmill on the western flank of the Rocky Mountains, workers are coming back from the Alberta oilfields to reclaim their jobs, reversing a labour flow that until now has been a one-way street.




Many workers left their families to find employment in Fort McMurray or in southeastern B.C.`s coal mines when the mill closed three years ago, said Radium Hot Springs Mayor Dee Conklin. But when Canfor announced earlier this year that it was investing





Read the full article here.

 

[Ally]

Vancouver's Richardson International plans $120-million grain handling expansion





VANOUVER ` Richardson International, the largest privately owned agri-business in Vancouver, is seeking a $120-million expansion of its grain and oil seed storage facilities at Port Metro Vancouver.




The company has applied to the port authority for a permit to expand its storage to meet growing demand for grain from the Asia-Pacific region.




Richardson International`s Vancouver terminal is operating at maximum capacity and is handling three million tonnes of grain and oil seed a year.





Read the full article here.

 

[Ally]

Surrey will be home to smallest condos





SURREY (NEWS1130) - Not only is the Lower Mainland home to the most expensive real estate in Canada but it will soon be home to the smallest condos.







Balance is a four-storey building with 56 micro-suites averaging about 290 square feet. The building will be going up in the Whalley area of Surrey, about a seven minute walk from the Gateway SkyTrain Station.







Developer Charan Sethi says his company has done extensive research into affordable housing. "Through that we figured out there is a desperate need to provide affordable housing for an income level of $22,000 to $55,000 per annum income."







Read the full article here.

 

[Ally]

Seaspan launches $200M upgrade at North Vancouver shipyard




METRO VANCOUVER - Seaspan kicked off a $200-million upgrade to its North Vancouver shipyard Friday, saying that the redevelopment will launch the rebirth of the West Coast shipbuilding industry.




The shipyard infrastructure investment marks the first major expenditure in B.C. related to the federal National Shipbuilding Procurement Strategy. Seaspan landed the $8-billion federal procurement contract a year ago Friday.




Seaspan will build seven vessels for the Canadian Coast Guard and Royal Canadian Navy under the contract.





Read the full article here.

 

[Ally]

BC universities warn of jobs crisis




The province`s leading universities have fired a warning shot across the bow of Premier Christy Clark`s vaunted jobs agenda.





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[Ally]

How do you add affordable houses in Vancouver? Build them in the middle of the street





VANCOUVER ` This is a city of braggadocio, in love with itself and its world-beater titles. A perennial topper on `Most Livable Cities` lists, Vancouver is now the `Most Reputable` place to live, whatever that means. But there`s an obvious downside. Vancouver occupies a relatively small area ` just 114 square kilometres ` and everyone wants a piece.




What`s the city to do? Cram even more people in. Shoehorn the middle class into tighter spaces. Tear up city streets and alleyways and build homes there. And force developers ` somehow ` to sell new homes for prices far below market value.





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[Ally]

Pipeline would bring boom for BC




I've always felt strongly that the merits of a project are best understood by looking past the headlines. It's a position I've come to rely on in my many years working with B.C. communities and businesses.




As opponents of the proposed Northern Gateway pipeline took part in their much-hyped demonstration on the lawn of the B.C. Legislature in Victoria on Monday, I urge those watching the coverage to take a step back and assess the pipeline proposal in a broader context than simply a noisy sit-in designed to co-opt the media.





Read the full article here.

 

[Ally]

Jobs growth the backbone of a strong economy




This is the first of a four-part series exploring British Columbia's innovative and active BC Jobs Plan, geared to drive job growth across the province.




There are 2,503,400 people in B.C.'s labour force and 2,328,300 were working as of the end of September - with B.C. generating 29,500 new jobs in the past year, according to BC Stats.




Impressive numbers, but not enough for the B.C. government, which, as part of its comprehensive Canada Starts Here: BC Jobs Plan, launched a $75 million skills training program in September to link graduates to jobs within the $80 billion of major projects underway across the province.





Read the full article here.

 

[Ally]

Kelowna among top BC real estate in BC




Despite oscillating outlooks on B.C. real estate, 20 of the province`s neighbourhoods are included in a list of the Top 100 Canadian neighbourhoods to invest in.




Yaletown, South Surrey, Kelowna North and Victoria`s Fairfield are included in the report by Canadian Real Estate Wealth magazine.




The rankings aim to help investors identify exact locations for investors to focus on `as a hedge against short- or long-term corrections,` said a news release.




High demand in trendy Yaletown in Vancouver means favourable returns in both retail income and property value appreciation, while south Surrey ` where houses average $1.1 million ` was cited as a hot spot in B.C.`s second largest city.





Read the full article here.

 

[DonCampbell]

In reference to the above article - be careful!



Although Kelowna has good potential, the biggest issue for investors will be in finding cash flow. Rent to purchase price ratio is out of wack, making it more of a speculative play rather than a straight investment market.



The analysis they used in determining this list mirrors some of the data and systems we use and teach - however it misses that critical component of "Can I Afford To Own It?" In other words is it going to cost the investor money every month hoping that they bought in the right market - or is it going to carry it self and pay the investor some annual cash dividends.



It is easy to name neighbourhoods that have potential for demand and value increase... MUCH more difficult to narrow these down to those that provide real investment returns.



Always analyze your properties to ensure they are not going to COST you money as you hold them. Be Smart - Invest for Cash Flow



Don

 

[Ally]

Surrey OKs tiny condos





Surrey may be the second-largest city in British Columbia, but it's also going to be home to the smallest condos in the country.



On Monday, Surrey city council approved the construction of Canada's smallest real estate.



The development company, Tien Sher, was given the green light to
construct 56 condos - ranging in size from 290 square feet to 653 square
feet - at Whalley Boulevard and Grosvenor Road.



Read the full article here.

 

[Ally]

Fresh data confirms strong jobs growth, points to weekly payroll gains



OTTAWA - Canada's
surprisingly strong jobs growth of the past two months got some
important validation Thursday from fresh data showing employers added
45,500 workers in August.





The news comes from the seldom
reported payroll survey of companies that Statistics Canada conducts in
conjunction with its better known labour market survey of households,
which determines the country's unemployment rate.





The employers survey showed jobs
have been added in each of the last six months and at a pace almost
twice that tracked by the household report





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[Ally]

Northern BC Real Estate Statistics





The number of homes sold through the MLSÂ System of the BC Northern Real
Estate Board posted a second consecutive year-over-year decline in
September 2012, while activity for the year-to-date remains above the
past three years due to a very strong first half of 2012.







According to the Board`s statistics home sales totaled 296 units in September, down 19 per cent from September 2011.







Read the full article here.

 

[Ally]

New strata property regulations approved by BC government




Depreciation reports help strata corporations plan for future repair
and maintenance costs. The report will help owners determine how repairs
will be funded and the amount that could be contributed to the CRF. The
most recent report will also be provided to potential purchasers.





Read the full article here.

 

[Ally]

Condo owners advised to check their insurance policies




Government must change the rules so the owner of an individual condo
unit doesn`t have to pay the huge insurance deductible on the entire
condo complex when something goes wrong in their individual unit, the
Insurance Bureau of Canada says.



Those deductibles have risen sharply in recent years. Some Metro
Vancouver residents have been shocked to find, after a leak in their
unit causes water damage to other parts of the building, that they are
required to pay the entire deductible on the strata council`s insurance
policy, which can amount to $100,000 or more.





Read the full article here.

 

[Ally]

Major development projects in BC




Hard Crek Nickel Corp. Proposed nickel mine 70 km east of Dease Lake.
$1.3 billion in pre-feasibility stage. Start 2015 finish 2017.



Peace River Site C Dam



Proposed third damn on the Peace River in northeaster B.C. $7.9 billion
1,100 MW capacity, 5,100 GWh of energy annually, stage three
environmental and regulatory review. Start 2012, finish 2020.





Read the full article here.

 

[Ally]

Building the new New West




New West. The Royal City. When some think of New Westminster, they
see a historic city on the Fraser River, rich in community spirit.
Others may have a less than favourable view, remembering a time not too
long ago when New West had a tough reputation and its best years seemed
behind it. That image is being turned on its head as this compact city
at the centre of Metro Vancouver addresses the challenges and embarks on
a period of growth and revitalization that is making it a place to
watch.







We`ve all heard the mantra of real estate agents, developers and
investors everywhere: location, location, location. It`s a basic rule
and one that New Westminster offers in spades. Five SkyTrain stations
and a central location have been key drivers behind the recent progress.
But without smart, strategic decisions by the city and community to
deal with difficulties that all urban communities face, like crime,
homelessness and aging infrastructure, New West wouldn`t be in the
enviable position it is today.





Since 1996, crime in New West has dropped nearly 60 per cent thanks to
concerted prevention efforts involving police, community organizations
and City Hall.





Read the full article here.

 

[Ally]

Construction one of BC's success stories




There are many ways to measure progress ` gross domestic product
growth, unemployment and labour force participation rates, value of
exports, changes in purchasing power, increases in retail sales and
stock prices, to name a few ` but none is more conspicuous than
construction.



When construction is booming, it`s more than likely that the rest of the
economy is humming along. And you don`t need a degree in economics to
gauge the state of the industry. A glance at the skyline tells the tale.
The number of cranes towering over the city and region is the surest
sign of construction activity, according to the Independent Contractors
and Businesses Association. In fact, the ICBA periodically counts cranes
to take the industry`s pulse and predicts that by this time next year,
there will be 142 cranes up and running in Greater Vancouver, an
increase from 78 in 2005-06. With an average of 136 workers from major
trades under each crane, the ICBA says, more than 19,000 skilled workers
will be employed on those sites, a number that excludes general
labourers.





Read the full article here.

 

[Ally]

More jobs expected to be available in 2013





Good news if you're looking for a job, as a new survey finds more businesses plan to hire people next year.







"Especially here in BC, it looks like 27 per cent of businesses said
that they plan to hire more employees next year," explains Stuart
MacFarland with BMO. "That's a good news story for BC, good news story
for those looking for work or graduating from university."







Just over 70 per cent of businesses are confident about 2013 and are
looking to become more productive, by not only hiring more folks but by
upgrading and buying new equipment.







Read the full article here.