From the looks of it the Vancouver real estate market won’t be slowing down anytime soon. Just recently community plans to increase density were approved by the metro Vancouver municipalities. That means developers are keeping busy with the construction of new developments.
And according to a report released by Colliers International this upward trajectory will continue into the near future. The West End in particular is poised to be a very active area for new developments. If you know anything about the West End you know it hasn’t been touched in over 30 years. Residents in the area are therefore very happy to see new developments sprouting up.
Currently there are about 15 high density residential developments in the works. And while some believe there is a bubble in the residential property market that will soon burst, clearly the developers don’t agree as they continue to push forward and build more properties. Areas such as Metrotown and the west side of Vancouver have continued to trend upward in pricing.
Landowners are starting to cash out which means high density site transactions are also on the rise. When it comes to the rental side of things the action is hot. Which is a huge bonus as that’s what the Vancouver council wanted. In 2012 the Vision Council set a goal to create 3,350 new rental units by the year 2021. Currently 3,300 of those rental units are in the works. That means they are way ahead of schedule.
To encourage builders to come in and build in Vancouver the city offered to decrease the amount of time it would take to get permits. They also lowered the cost of development as well as contributions to community amenities. As an added bonus they allowed developers to build units that were only 320 square feet. Because of these incentives developers have been able to get a high return on their investment.
Anytime developers are able to make a high return on investment they will continue to build in the area. It also encourages other developers to do the same.
And while all of this new development is good for the economy the question still remains, does it make the are more livable? That’s a question only the real Vancouverites can answer.