Despite the Bank of Canada’s continued warning that interest rates should rise in the next couple of years, it is now suggesting that a move is “less imminent” due to slower household credit growth. According to BMO: “Modest growth, below-target inflation (0.8% in December), tighter credit rules, easy Fed policy, and a strong loonie argue against a rate hike. We expect the overnight rate to stay at 1% until the spring of 2014, before rising gradually to a more neutral 3½ % in 2016.”  Likewise the bank’s forecast for bond yields is a rise of 100 to 150bps over the next 18-24 months.

This indicates that barring a shock to the system, 5-year money for commercial mortgages will continue to be readily available at near historic lows in the near term, with spreads of 200 to 200 basis points coming in around or under 4.00%.

Source: Bank of Canada

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.

Richmond Review – Gilmore Estates on the block for $55 million.

One per cent of Richmond is now for sale.

The Gilmore Estates, a massive rectangular chunk of Richmond farmland, south of Steveston Highway running all the way to the waterfront, and between No. 4 Road and Shell, comprises 10 legal titles, encompasses 324.5 acres, and boasts 800 feet of waterfront. The asking price for this assembly? Well, as the saying goes, if you have to ask, you can’t afford it.

According to realtor Cecilia Tse of Colliers International, the asking price of $55 million is spot on, considering the recent sales of farmland in the area. At least two other farmable properties are also for sale in the area south of Steveston Highway, each consisting of multi-acre parcels.

“The Gilmore Estates represent 1% of the entire land area of the City of Richmond,” a four-page colour Colliers brochure states.

Read more: http://www.richmondreview.com/news/190397091.html

The City of Vancouver has developed a rezoning policy for the “Little Mountain – Adjacent Area” located at Main and 33rd to guide rezoning applications in the area next to the Little Mountain housing site soon to commence development by Holborn Group. The area is primarily comprised of single family homes, as well as 6 apartment buildings fronting Main Street, and a strata-titled complex at the corner of Main and 33rd.

The rezoning policy encourages redevelopment of this area to provide a variety of ‘ground oriented’ housing forms, with an emphasis on innovative housing types suitable for families and options to improve housing affordability. Highlights of the plan include:

• Two basic housing types: Townhouses, including stacked and courtyard forms up to 1.5 FSR and heights up to 45 ft; and Low to Mid-Rise Apartments (4 to 6 storeys) up to 2.3 FSR and heights up to 65 ft.
• Townhomes will not require a CAC on rezoning, lowrise and midrise apartments above 1.5 FSR will require a CAC of $23/SF.

Peace Arch News – Land sales focus of pre-budget debate.

Finance Minister Mike de Jong rejected NDP criticism of his government’s sale of Crown land Thursday, and promised an update on the disposal of up to 100 properties when he presents his pre-election budget on Feb. 19.

De Jong’s comments came after NDP leader Adrian Dix and finance critic Bruce Ralston visited one of the few properties whose location is known, a large vacant lot in Surrey that was bought in 1998 as a possible future hospital site.

Ralston said the government has counted on raising $475 million in 2013 and more than $200 million the following year through asset sales, to help balance a 2013 budget after the current one ends in the red by $1.4 billion.

Read more: http://www.peacearchnews.com/news/190285201.html