The above chart excludes townhouse and duplex sales.
The cooling off started in early 2018, but 2019 land sales data in Metro Vancouver shows the extent of the slowdown.
After a seemingly unstoppable run up in values and transaction activity over the past five years, both prices and number of sales have declined.
After a record 2018 for land sales in Metro Vancouver with $5 Billion in total sales value, the total value for 2019 was down more than half, to $2.4 Billion.
Declines have been offset by continued strength in demand for rental residential and office development. Likewise, more recent activity suggests a return of demand for condo land in the suburbs. Conversely, core luxury condo sites have essentially fallen off the radar.
Here’s a look at each of the 10 largest land deals of 2019:
1. Lougheed & Alpha, Burnaby
- Price: Approx. $250 M
- Site Area: 7.86 acres
- Vendor: Private Owner
- Purchaser: Grosvenor
The goods: The largest land deal of the year took place in the rapidly transforming Brentwood Town Centre area of Burnaby. The site in question represents a land assembly of auto dealership land and an office building to total a combined 8 acres (some of which already owned by Grosvenor) located at the corner of Lougheed Highway and Alpha Avenue, across the street from Shape’s Amazing Brentwood project, now under construction. The deal closed in October 2019 and represents a long-term redevelopment for Grosvenor.
A rezoning application has now been submitted by Perkins + Will Architects that would establish a master plan for the site. The development plan envisions a high density mixed-use development with condos, rental apartments, retail and office space.
2. 331 Riverside Drive, North Vancouver
- Price: $55 Million
- Site Area: 3.7 acres
- Vendor: Private Investor
- Purchaser: Darwin Construction & Quadreal
The goods: This 3.7-acre site is located in the Maplewood Village area of North Vancouver. The property is currently improved with older lowrise apartment buildings but is designated to allow rezoning for a medium density residential development up to a density of 2.50 FAR. There is currently no timeframe for redevelopment.
3. Plaza 102 Site, Surrey
- Price: $54 Million
- Site Area: 1.6 acres
- Vendor: Private Investor
- Purchaser: Private Investor
The goods: This strip mall is located at the corner of 102 Ave and King George Boulevard in the City Centre area of Surrey. The site is directly across 102 from Central City.
There is no word yet on redevelopment, but the City Centre Plan allows for a high density redevelopment up to 7.50 FAR.
4. 18930 & 18970 24th Avenue, Surrey
- Price: $44 Million
- Site Area: 20 Acres
- Vendor: Private Investor
- Purchaser: PIRET
The goods: This sale involved a large industrial site in the Latimer area of Campbell Heights in South Surrey. An initial rezoning application anticipates rezoning the combined site to allow a new industrial building. Blackstone Property Partners took Pure Industrial (“PIRET”) private in May 2018.
5. 3231 No. 6 Road, Richmond
- Price: $42 Million
- Site Area: 9.5 acres
- Vendor: Kingsett Capital
- Purchaser: Conwest Group
The goods: Conwest acquired this industrial property, previously occupied by Versacold, in November 2019. The plan includes redevelopment.
6. 4275 Grange Street, Burnaby
- Price: $38 Million
- Site Area: 1.1 acres
- Vendor: Strata
- Purchaser: Qualex Landmark
The goods: Another tower site in the coveted Metrotown area of Burnaby, this assembly of a strata building was completed by Casey Weeks and Morgan Iannone of Colliers in early 2019. Rezoning details have not been released yet, but the OCP allows a highrise tower.
7. Burke Mountain Site, Coquitlam
- Price: $35 Million
- Site Area: 9 acres
- Vendor: City of Coquitlam
- Purchaser: Polygon
The goods: This 9 acre low density residential site in the Partington Creek area of Burke Mountain was sold by the City of Coquitlam to Polygon. After the sale, a development proposal has been submitted which includes 132 townhouse units.
8. 465 East Broadway, Vancouver
- Price: $33 Million
- Site Area: 0.9 acres
- Vendor: Private Investor
- Purchaser: Reliance Properties & Kingsett
The goods: This site was sold by the Colliers team of Oliver Omi and Casey Pollard in April 2019. The site was sold via off-market transaction and includes an older lowrise commercial building. The site is zoned C-2 which allows outright approval for 4-storeys.
9. 3006-3060 Spring Street, Port Moody
- Price: $33 Million
- Site Area: 2.3 acres
- Vendor: Private Investor
- Purchaser: PCI Group
The goods: This site is currently an older industrial property, but has significant rezoning potential under the City of Port Moody’s OCP.
10. 6425 Silver Avenue, Burnaby
- Price: $31 Million
- Site Area: 0.74 acres
- Vendor: Private Local Investors
- Purchaser: Kunyuan International
The goods: This property is designated for high density residential development and includes a 48-unit lowrise apartment building.
Some notes from the above list:
- Only 1 of the 10 largest land deals in Metro Vancouver took place in the City of Vancouver (down from 4 of 10 last year, and 9 out of 10 in 2017)
- 5 of 10 were sold by market bid process (the other 2 were ‘off-market’)
- 8 of 10 were bought by well-established ‘local’ development groups, the other buyers were offshore or ‘new-entrant’ development companies.
Have a question or a comment on the above? Feel free to contact me.
The City of Coquitlam (Council-in Committee) will receive a report outlining the Draft City Centre Area Plan (CCAP), which will form new land use policy for the Coquitlam City Centre area.
The planning effort got underway in the fall of 2018, and is now ready for council consideration and public consultation. The draft document, now completed, will proceed with the next phase of public consultation on the Draft CCAP. Based on that next phase consultation feedback, refinements will be made to the draft CCAP prior to Council’s consideration of bylaw adoption of the Plan in early 2020.
The main objectives of the plan are summarized by five ‘big moves’ outlined in the report, including:
1. Creating a Vibrant Downtown Core: The majority of population and employment growth in City Centre will be directed to a defined, mixed use Commerciai Downtown Core (of approximately 51 hectares/127 acres). The Core will be anchored by an Entertainment District that will serve as a destination for socializing and gathering. The Core will also include a hotel and conference space to serve businesses, tourists and visitors to Coquitlam. Concentrating growth in this manner will establish a sense of vibrancy in the ‘heart’ of City Centre and help create an active downtown.
2. Establishing a Strong Employment Base: A key component of a successful downtown is establishing a strong employment base. To achieve job growth, the amount of employment-generating floor space is recommended to be increased in the Commercial Downtown Core. To help augment employment generating floor space, two Office Business Districts are envisioned for City Centre, which have been strategically situated around a transportation nexus that includes a major bus hub, two SkyTrain stations, a West Coast Express station, and highway access and visibility. These Districts are envisioned to contain a dense concentration of office space, including office towers, situated within high density mixed-use developments along with a mix of other employment-generating businesses. To meet the evolving needs of businesses, several areas outside the Commercial Downtown Core will accommodate Business Enterprise uses to support a thriving downtown.
3. Building a Family-friendly Downtown: The Draft CCAP seeks to establish a family-friendly City Centre through the provision of public and civic amenities, including child care services and a new elementary school site centrally located in City Centre. To meet the varying needs of households of all types and at all stages of life, a variety of housing choices, tenures and price levels will be provided across City Centre. This will be achieved by respecting established neighbourhoods and directing new high density residential developmentto the Commercial Downtown Core.
4. Enhancing Recreation and Cultural Services: Enhancements to civic amenities and the public realm are essential to creating an inviting and active downtown that meets the needs of residents, attracts visitors and businesses to City Centre, and are critical to support a growing community. The CCAP seeks to create a network of parks and publicly accessible open spaces to encourage social interaction and enhance physical and mental well-being. Centrally located civic amenities will contribute to the vibrancy of the Commercial Downtown Core by providing cultural and recreational amenities for residents and businesses.
5. Integrating and Connecting Downtown: Transit-Oriented Development is central to strengthening the area’s role as a Regional City Centre and transportation hub. Improved ease of movement throughout City Centre will be achieved through a finer street grid. Pedestrian-friendly streets, pathways and greenways that are safe, well designed, and seamlessly connect commercial and office development with neighbourhoods, schools, parks, natural areas (including the Coquitlam River), and recreation and cultural facilities will help create an enjoyable, safe, and healthy environment for walking and cycling.
Land Use
The proposed land use changes focus on the Commercial Downtown Core, which is intended to be a major regional centre of commerce and employment, as well as a vibrant mixed-use neighbourhood with high-density residential. To help achieve this active, vibrant downtown, development in the Commercial Downtown Core are recommended for a commercial floor space requirement of 1.0 FAR (rising from current 0.5 FAR). To achieve vibrancy and vitality in and around the Commercial Downtown Core, draft policies seek to create visually interesting, inviting and functional spaces through:
• The establishment of three Precincts (Pinetree-Lougheed Precinct, Lincoln SkyTrain Station Precinct and Four Corners Precinct) in and around key intersections and SkyTrain stations to serve as welcoming destinations in City Centre and form an interconnected ‘spine of activity’ along Pinetree Way.
The report also notes current discussions with major property owners, including: ” Morguard, Marcon, Choice Properties, BentallGreenOak, Polygon and Concert). Recently, another developer (e.g., Ledingham McAllister) has come forward with a proposed land assembly in the Pipeline Road corridor in the vicinity of Glen Drive and Inlet Street. “
The full staff report including draft plan can be viewed here: https://www.coquitlam.ca/docs/default-source/council-agenda-documents/citydocs–3504867-v1-councilincommittee_2019_10_28_-_item_3.pdf?sfvrsn=2