One of the more land constrained markets in the Lower Mainland, there has not been a lot of opportunity for new multi-family residential development in West Vancouver over the past several years.

With the exception of some standing inventory in two small lowrise and townhouse projects, there are no actively selling projects. However, there are several large scale developments in various stages of planning and approval.

These include:

None of the above projects are straightforward development processes from an approvals standpoint. This combined with West Vancouver’s notoriety as a difficult municipality to deal with the public may push out the timelines that projects are delivered to market.

This dearth in new supply on the horizon is pushing sales prices well above $800 per sq ft in most locations. The lack of opportunity to live in West Vancouver on an affordable basis is likely to reinforce pricing for the foreseeable future.

Despite being a highly attractive destination for end users, many developers do not even place West Van on their radar due to the lack of opportunity and a negative perception in getting projects approved.

Average sales prices for resales of newer Downtown Vancouver condo units have averaged 4.6% annual growth over the past 5 years.

With fewer projects on the horizon scheduled to complete, sales values for existing product (resales) are anticipated to remain stable, and will likely eclipse the $800 per sq ft average sometime in the next 18 months.

Source: MLS

Despite minor movements in price growth for single family homes in the City of Vancouver, there has been steady annualized growth of 12.6% since 2001. For example, while 2009 saw a decline in sales activity and prices dropping by approximately 4%, prices are now back up well above their previous 2008 peaks.

The average price of a detached single family home in the City of Vancouver has risen from $712,235 in 2001 to $2,336,634 as of July 2011.

Is this growth sustainable despite being inexorably unlinked to traditional metrics such as income and population growth?

Source: MLS

There has been significant land transaction activity in the Surrey City Centre area recently which led us to question where current concrete residential values are today, and where they are heading.

Recently, several highrise residential projects including Park Place and Ultra have been in pre-sales (Park Place is nearing completion, while Ultra is in the excavation stages). Several more tower projects are in various stages of planning and approval, with many developers taking a long-term view of the area and it’s growth potential.

New concrete residential highrise projects are typically averaging $380-400 per sq ft with a focus on price points that indicate value for both first-time buyers and investors.

An analysis of all concrete resales for buildings less than 10 years old suggests that concrete residential unit prices are moving up closer to new sales and the spread between new and old product is being reduced. A reduced spread is present in more mature markets such as Vancouver and Burnaby. The current average for resales is now over $350 per sq ft.

Source: MLS

The District of West Vancouver is currently in the public consultation process of a plan to revitalize the centre of the municipality, centred around the Ambleside area.

Objectives of the plan include the following:

• Revitalize Ambleside through the development of the 1300 Block;
• Relocate the inadequate police station from the 1300 Block and the Fire Hall on 16^th Street and Fulton Avenue to a new integrated police and fire post-disaster facility on the Municipal Hall property; thereby, allowing the 1300 Block and the Fire Hall site to be developed to their full potential;
• Enliven the Municipal Hall area and enhance streetscapes through place-making and the development of municipally owned lands with housing; and
• Generate sufficient revenues from the sale or lease of the municipally owned lands in the 1300 Block and in the Municipal Hall area to pay for the Public Safety Building
• with surplus funds applied to the Endowment Fund or public amenities.

In 2011, West Vancouver Council have held several meetings and information sessions, with the budget for the study approved June 6, 2011. It is expected that the plan will conclude some time in 2012.

Further information can be obtained at the District of West Vancouver’s website for the plan.

Source: City of West Vancouver