An analysis of year to date resales for concrete condos less than 3 years old shows that average pricing is approx. $800 per SF.

At 3.1% growth since 2006, average pricing has outpaced inflation, but pricing has been relatively flat in 2013, up less than 1% year over year.

As we approach the end of summer, a look at transaction activity in Metro Vancouver at the 2/3 mark of the year shows a fairly significant drop compared to this time last year. Research prepared by Colliers International shows the number of transactions of over $3 Million down slightly for retail and apartment properties, and down almost 50% for office buildings (where supply has been scarce) and land (where demand is down after a busy 2012 that saw many large sites acquired).

An article in the Vancouver Sun mentions Realnet research reflects these numbers and shows even greater declines in Calgary and Toronto during the same period.

Perhaps this indicates the market’s collective belief that valuations are peaking for both investment properties and development sites.

As we reported last week, the City decided to backtrack on proposed tower heights around Commercial and Broadway as part of the Grandview Woodland Community Plan. Now the City has responded further, by suggesting they will extend the timeline for the planning process by six months. Here is an excerpt from a motion of notice for next week’s Council meeting:

“As of July 15, 2013, 718 individuals have sent a message to Mayor and Council, noting that “the land use rezoning proposals in the ‘Emerging directions’ document and map…came as a complete surprise to the community when they were published in June 2013” and demanding at least six months more for the Grandview-Woodland Community Plan (“a reasonable period of time”) for “an open and collaborative process to discuss, debate and select preferred options with regard to these proposals.”

As the West End Community Plan is emerging, we thought it would be interesting to take a look at the largest lots in the West End. There aren’t many large lots; in fact, of privately held properties, there are less than 10 of an acre or more.  Here are the 40 largest parcels in the West End, by land area (SF):

All of the above properties are improved with sizable income producing (mostly apartment) properties that won’t likely be redeveloped anytime soon; however, many of these, and many smaller lots (of which there are over 500), will see some activity in the coming years as part of the West End Plan. Here is the City’s depiction of what the West End might look like in 30 years once built out per current policy:

Contact us if you would like to know more about the WECP and where are the opportunities are.

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.

Click above for greater detail.

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.