High-end rentals are latest trend
Colliers calls multi-family property “the most stable asset in major Canadian cities,” and the most sought after.
In Vancouver’s West End, the Lauren was completed last year at 1051 Broughton, exemplifying the trend. …
These types of developments, with monthly suite rents between $1,450 and $2,100 depending on size, have been prompted by municipal rental incentive programs. For example, under the 2009 Rental 100 program, Vancouver granted developers a $10-million break on city fees to encourage the construction of rental buildings.
The traditional lower-middle-income rental stock – the thousands of wood-frame low-rise boxes built in the 1940s and early 1950s – are also being seen as seams in this gold rush:.
I have a friend (Mr. X) who is one of the top minds in real estate in the city. He’s a man who has bought and sold hundreds of apartment buildings throughout North America over a nearly four decades long career. …
Over dinner one night, we got to talking about the real estate industry in Vancouver. More specifically, we were chatting about what a wealthy investor should do with a substantial sum he wanted to keep safe.
We got to talking about the West End.
“West of Denman’s as good as gold,” the tycoon said..
1847 Pendrell: “a 23-unit building West of Denman for $9.45 million”
Vancouver realtor David Goodman, who specializes in multifamily property sales, says, “We’re almost out of product.”
Goodman, a principal at HQ Real Estate Services who, with son Mark, has sold 18 properties worth more than $135 million so far this year, says: “Our product is being snapped up by sophisticated investors at a lightning pace. Owners who previously would never consider selling are now being swayed by mindblowing dollar amounts.
“Unprecedented demand is propelling selling prices past recent highs.”
Expect commensurate rent increases to follow – combined with changes in the rate and scale of new development in the West End.
While the new West End plan retains the scale of the centre blocks of the West End, allowing only small-scale infill, particularly in the laneways, there are already the beginnings of what will be a rush of highrise proposals along the outer blocks, some up to 50-storeys, and at the western ends of Robson and Davie.
As with the STIR projects, there will be blowback from residents who were either not paying attention to the planning process or who dislike change of any significance.
Small and large infill development in the centre blocks of the West End.
The Vision Council sometimes seens remarkably inept at anticipating or responding to the political consequences of change. In the West End, they had best get ready for the already-predicted earthquakes to come.