Kenstone Properties proposed new project at 1155 Hornby Street in Downtown Vancouver will likely move one step forward next week at public hearing.

Kenstone is seeking approval for a 20-storey tower which has been approved pending heritage designation of the Murray Hotel building, located at 1119 Hornby as a protected heritage property to complete the incentive and compensation package for the development next door. The hotel is listed as class ‘B’ on the Vancouver Heritage Register.

The total proposed density is 6.09 FSR. The site had been sold in 2007.

Based upon the most recent statistics from the Real Estate Board of Greater Vancouver’s Home Price Index, benchmark prices for Richmond residential properties have shown minor gains since the beginning of 2013 after a long period of negative or stagnant growth in pricing.

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Source: REBGV stats. (The home price index measures the rate of change on housing prices based on resales data to obtain benchmark prices.)

For perspective, the benchmark price for single family has declined 8.4% since the peak in June 2011. After a dramatic rise in 2010, prices now sit roughly at February 2011 levels. Condos and townhouses prices have shown recent gains after a couple of years of slow or zero growth.

From a new supply perspective, there are currently estimated to be approx. 5,000 housing units under various stages of approval and development in Richmond (ie. 1-5 years delivery), most of which are either woodframe or concrete multifamily units. New townhouse construction comprises less than 7.0% of the total new units being built. New single family construction in Richmond is currently limited to small scale and single lot developments.

A 36-unit building at the corner of Nelson and Bute Streets in the West End of Downtown Vancouver has sold for $13,000,000. The building was originally constructed in the 1930’s but was fully renovated in 2010/2011. The cap rate was 4.15%. The buyer was Belmont Properties.