In Metrotown, demand for new condo product appears to have quieted down somewhat over the past several months. But that’s not stopping developers and investors, who are betting on the success of this town centre area over the long-term.
The latest example came in December with sale of 5895 Barker Avenue, a potential tower redevelopment site.
There are now six 35+ storey tower projects under construction in the area, primarily in the RM-5 zone which allows a higher density. These include:
- Metroplace, 343 units by Intracorp.
- The Met, 295 units by Concord Pacific.
- Station Square (Phase 1), 269 units by Anthem/Beedie.
- Silver, 284 units by Intracorp.
- Moda, 249 units by Polygon.
- Sovereign, 202 units, by Bosa.
There are also an additional 2,000+ units in various stages of planning, including an additional 930 units at Station Square (phase 2, consisting of 35 and 57 storey towers) is planned to be released in the near future), as well as other projects planned by Polygon, BlueSky Properties, Boffo, Concord and Intracorp.
A number of apartment buildings that are currently zoned RM-3 have been selling to investors that see upside and future redevelopment potential. See below a list of recent sales. Apartments without immediate redevelopment potential generally trade at $170,000 to $180,000 per unit in this area. RM-5 zoned apartment properties that can be redeveloped as towers often trade for higher values (based on land value).
In addition, Ivanhoe Cambridge is nearing halfway completion of its Metrotower 3, the first new office project built in the area in several years, which speaks to the ongoing potential of the area not solely as a bedroom community.
Metrotown has long been viewed as Burnaby’s true town centre, and despite activity in the other designated ‘town centres’ such as Brentwood and Edmonds. Metrotown is continuing to show strong valuations for both development sites and existing income producing properties.
