15 Feb Vancouver Real Estate | Land and Housing Crisis in Burnaby Richmond BC
Land Scarcity in Vancouver a Rising Worry
Greater Vancouver enjoyed a super year in commercial real estate sales last year. During the first 6 months of 2012, the area saw $1.42 billion in commercial transactions. That number has many optimistic about the Vancouver property investment scene.
With the Vancouver and Canadian economy stable and foreign investors still eager to buy property, there’s no reason for any talk of a real estate bubble.
The Perfect Location
Vancouver is situated in a small plain at the foot of the Fraser River. Vancouver is constrained and pressured by its boundaries: the mountains to the north, the Straight of Georgia to the west, the land reserve of the Fraser Valley to the east and by the U.S. border to the south. With immigrants from other parts of Canada and from China, India, and South America funnelling in each year, the demand for high condos to house them will only grow.
A look at our homepage picture says all you need to know about real estate in Vancouver. Downtown Vancouver is much like the city of Manhattan in NY, a vast sea of residential condominium, commercial retail and office buildings.
Other areas of greater Vancouver are seeing condo development too including Burnaby and Richmond. The fact is, real estate in Vancouver is a scarce commodity and money will always be chasing available land.
Historic Sales Volumes for First Half of 2012. Avison Young reports that Private buyers were the most active, comprising almost three-quarters of all transactions, but only 34% ($477 million) of dollar volume. REITs and public companies were generally unsuccessful in acquiring properties.
According to Avison Young, investors invested in excess of $700 million into office buildings during the first half of the 2012, which more than $200 Million increase from the whole year of 2011. From a Vancouver Sun real estate report recently published, Michael Keenan, who is managing director at Avison Young, said the “high transaction numbers reflect the perceived stability and security of commercial real estate compared to residential investment and stock and bond markets.
Vancouver is the gateway to the Pacific Rim, a key to Canada’s economic future. Vancouver is attractive to foreign investors in Asia due to its proximity and the high percentage of Asian immigrants in cities such as Vancouver, Vancouver West Side and Richmond.
Development of hi-rise residential condo towers has risen strongly and a strong demand exists for apartment buildings. The development of residential properties is creating a scarcity of land for industrial purposes which is a concern for the local economy in coming years. When the economy picks up in 2013, it will be an all out war for land in areas such as Richmond. There’s nowhere else to go but up, in Vancouver.
Don’t forget to check out the new Global Education City in Richmond. This complex will have much to offer both foreign students studying in Canada, who will attend classes there, and for investors looking for a good property investment opportunity. Discover more by discussing with Joyce Soo.