Saturday, April 2, 2016
i 5
Saturday, 2, 2016 Saturday, April April 2, 2016 i 5i 5
Vol. 6 No. 31 Saturday - April 2, 2016 - Tel: - Tel: 604-591-5423 E-mail: ads@theasianstar.com 604-591-5423 - -E-mail: ads@theasianstar.com Tel: 604-591-5423 E-mail: ads@theasianstar.com Vol. 6 No. 31 - Saturday - April 2, 2016 - Tel: 604-591-5423 - E-mail: ads@theasianstar.com
31 -- March Saturday Vol. 8 No.Vol. 07 6- No. Saturday 18, 2017- April 2, 2016
Vancouver’s skyline to rise amid an office-tower building boom
Vancouver’s skyline to riserent amid anAverage office-tower building boom house prices up 3.5% in pasthisyear, Ontario housing minister vows to boost Vancouver’s skyline to rise amid an office-tower building boom next two years due to competition. it Suisse is optimistic building tower tower is optimistic his building will will he $240-million $240-million Credit CreditSuisse/ Suisse/ Mr.Mr. Shokri others expectnext two years due to competition. it Suisse he Shokri andand others say say theythey expect The landlords who will likely suffer The landlords who will likely suffer next two years due to competition. start to fill as the completion date gets closer. start to fill as the completion date gets closer. it Suisse tower is optimistic his building will SwissRealtower tower the heart of many many of the new towers toseries start signing SwissReal ininthe heart ofToronto of the new towers to start signing tenant worth $519,521 inGehriger, February he $240-million Credit Suisse/ Mr. Shokri and others say tenant they expect control after CBC tenancy a result of the current boom are ownas aasresult of the current boom are ownThe landlords who will likely suffer Franz Gehriger, the CEO of SwissReal Franz the CEO of SwissReal start to fill as the completion date gets closer. downtown as they getget closer to completion. ThatThat downtown Vancouver Vancouver will will bebe leases leases as they closer to completion.
T T
SwissReal tower the heart of the new towers to start signing The Ontario housing minister vowsin that ofbuildings, the average home Act of couldmany be tabled in the legislature, sayingtenant The market isbought sothe outthe ofthe whack in Golden ers of older Shokri said. Asare ersThe ofasprice older Mr. Canadian Shokri As abuildings, result of Mr. the current boomsaid. ownGroupGroup who bought original historic who original historic Franz Gehriger, CEO of the SwissReal completed ininless than a ayear, but sosofar,far, will is is partly because companies in Vancouver, completed less than year, but partly because companies in Vancouver, downtown Vancouver be leases as they get closer to completion. That the province will soon unveil new “rental only that he’s pushing his staff to have it readywell, ticked up by 3.5 per cent to $519,521 in Horseshoe area stretching from just east of new developments in the suburbs, well, new developments in the suburbs, stock-exchange building in 2002 before parters of older buildings, Mr. Shokri said. As stock-exchange building in 2002 before partGroup who bought the original historic only has upupthan totomove in.in.butwhich want to be in energy-efficient onlyone onetenant hassigned signed move which to because benew, in new, energy-efficient completed inskyrocketing less a cost year, far,do do iswant partly companies in Vancouver, controls” totenant address the to so February, even as the national figures continue shortly. Toronto and southwest toward Hamilton and which have already experienced higher neringnering with Credit Suisse to develop it,before said it, whichwell, have experienced newalready developments in the higher suburbs, The tenant has one committed forfor a a10th buildings, to operate on short timelines. with Credit Suisse develop said stock-exchange building into2002 partThe tenantonly 10th of move buildings, tend to operate onainshort timelines. tenantToronto. has signed upof to in. tend which do wantcome to be new, energy-efficient lease a home inhas andcommitted around to be rates skewed byrecent activity in themay country’s Ballard’s comments few hours aftervacancy beyond that the imbalance between supply inhave years,years, may have the main group interested in leasing Vancouvacancy rates inhotalready recent have which experienced higher the 370,000 square feet – leaving a state of As well, he said, prices in the new thenering mainwith group interested Credit Suisse in to leasing developVancouit, said the 370,000 square feet – leaving a state of As well, he said, prices in the new The tenant has committed for a 10th of buildings, tend to operate on short timelines. asvacancy they compete each other. Ministerthat Chris Ballardforspoke about biggest market: Toronto. NDP MPP Tabuns said he would tabletrouble and space demand is “without ” CREA ver office is theprecedent, technology rates in with recent years, may have trouble as they compete with each other. emptiness unusual an office sky-the buildings willPeter come i Saturday, July 25, 2015down in the mainthese groupdays interested Vancouvertheoffice space these daysin isleasing the technology theisis370,000 square feet – leaving a 4state of Saturday, Aslikely well, he said, prices in end emptinesschanges that unusual for an office skybuildings will likely come down in the new 4private i July 25, 2015 In Vancouver, the co-developer of theAssociation, Cred- sector. upcoming on Thursday, following the The Canadian Real Estate a member’s bill that calls for an said. Those companies make their deciscraper in this city. Even so, a huge shift in trouble as they compete with each other. sector. In Vancouver, the co-developer of the Credver office space these daysprice is thefigure technology Those companies make theircan deciemptiness thatso, is unusual for aninoffice buildings will rule, likely come down in the scraper in this city. Even a huge shift 4 i Saturday, July which 25, 2015 announcement NDP private which represents realtors, reported Wednesday to skythe so-called 1991 exempts CREA says the average be business tenancyofisaexpected as themember’s region In Vancouver, the co-developer of the Cred- sector. Those companies make their deciscraper in this city. Even so, a huge shift in bill promising much the same thing — and that the average price property built after Nov. 1, 1991 from business tenancy is expected as the region experiences something it has not seen bebusiness tenancy expected as region aexperiences CBC seriesbuilding focusing on the fallout continues to be pulled rent control. something it hasisboom not seen be-the provincial fore: anToronto office-tower much the limited safety net for renters has created upward by sales activity Former premier Mike Harris’s Tory experiences something it has not seen before: an office-tower building boom much of which is speculative construction rathin Greater Vancouver government made the loophole law fore: an office-tower building boom much of which is speculative construction rather than for specific committed tenants. which is committed speculative construction rath- in 1997, saying that it would spark and Greater Toronto, er“This thanis kind forofofspecific tenants. uncharted territory for Vaner ofthan for specific committed couver, ” said Mehdi Shokri, aterritory principal with “This is kind uncharted for Van- tenants. developers to create more apartments which remain two of “Thisteam isShokri, kindatofAvison uncharted territory the capital markets Young. couver, ” said Mehdi a principal with for Van- to address what was considered a Canada’s tightest, most active and expensive couver, said Mehdi Shokri, a principal with stagnating rental supply. “But I don’t markets see a ”big disaster occurring. ” the capital team at Avison Young. housing markets. But tenancy advocates argue that The ICredit Suisse is onlyteam the at most Avison “But don’tthe seecapital a tower bigmarkets disaster occurring. ” Young. the move didn’t spur the necessary “That said, Greater visible and furthest of aasecond I along don’t see big disaster The Credit“But Suisse tower is only thewave mostoccurring.” level of rental property development Vancouver’s share of of new office towers planned fortower VancouThe Credit only the most visible and furthest alongSuisse of a secondiswave — and Ballard told CBC Toronto national sales activity has ver and somevisible key suburbs. A first cluster and furthest along of a second wave of new office towers planned for Vancoudiminished considerably of towers – some twooffice million square feet –for Vancou- that he agrees. of new towers planned ver built and downtown some key in suburbs. Athree first cluster The minister said that he’s over the past year, giving was the past years. ver andtwo some key suburbs. A first cluster ofAnother towers – 11 some square feet “absolutely” open to revisiting that it less upward influence on the national misleading, which is why it prefers to track office million developments are – of towers – some two million square feet – particular segment of the law. average price,” CREA said. something it calls the Aggregate Composite was built downtown in theofpast three years. proposed within blocks Credit Suwas built downtown in the past three years. If the two cities are stripped out, the value Multiple Listings Service House Price Index for Another young professionals this city. “With the number of people we have 11 tower officeatindevelopments isse’s Exchange Howe and Westare Another 11 office developments are to Toronto and the GTHA every year, of the typical Canadian home would drop by — a term that boils down to CREA’s attempt “It’s absolutely unacceptable renters are moving Pender streets, even while the office-vaproposed within blocks ofthatCredit Suproposed within blocks of Credit Sufacing the pressure that they’re facing to smooth out the numbers by adjusting for cancy in the tower region to today, inch isse’s rate Exchange atcontinues Howe and West” clearly it’s not working,” he said. “There’s such more than $150,000 to $369,728. isse’s Exchange tower at Howe andpressure West for people looking for a good place February is not typically a popular month things like seasonality, and the type of housing. Ballard told CBC Toronto in anbuilding. interview. up as a result of the firstwhile wave of Pender streets, even the office-vaPenderbrokers streets, say eventhewhile the for home sales, but sales were up in 70 per cent “So legislation to call home.” Even despite those adjustments, the Toronto Butwe’ll commercial city is office-vacancy ratebein bringing the regionforward continues to inch cancy raterent in the regiontowers. continues thatabout expands onpopulated the controls that are to inch Earlier Thursday, Jim Murphy, president of all markets from January’s level, CREA said. area’s numbers are downright booming, up 23 not to be by ghost up as a result of the first wave of building. up as” a result of the first wave of building. And as was the case with prices, “the per cent in the past 12 months to $727,300. currently in place. and CEO of the Federation of Rental Housing But commercialcommercial brokers saybrokers the city is city is say Staff within But the housing ministry havethe Providers, said that rental regulations help to national increase was overwhelmingly driven “It’s pretty much the best time to be selling not about tonot be about populated ghost towers. to be by populated by ghost towers. been consulting with tenants and landlords maintain some security for investors, and by an increase in activity across the Greater a Toronto home in at least 30 years,” Bank of across the province since Ballard took over changing the rules will create uncertainty. Toronto Area (GTA) and environs,” CREA Montreal economist Robert Kavcic said, “with the portfolio last spring, the minister said “Now is not the time to make changes that said. almost all new listings getting absorbed within in an interview. He couldn’t commit as to would adversely impact investor confidence,” Homes are selling briskly in the Toronto the month.” area, but that’s not the case in the rest of the when the changes to the Residential Tenancy he said in a telephone interview. Detached houses in the GTA are up 26 country, where competition among potential per cent in the past year, and condos are buyers is less intense, so listings take longer to up by almost as much — 19 per cent. “The sell. latter is pretty good evidence that supply“In and around Toronto, many potential side fundamentals have been left in the dust,” Buying a home can be difficult. House Toronto Real Estate Board’s monthly market move-up buyers find themselves outbid Kavcic said. hunters must save for a down payment, may watch report. in multiple-offer situations amid a short Markets close to the city are doing even face bidding wars and even forgo conditions Mamourian said the limited listings mean supply of listings,” CREA’s chief economist better, with places like Guelph, London and once considered staples of a home purchase homes sell fast and buyers should prepare Gregory Klump said. “As a result, they aren’t Barrie pushing 30 per cent gains in the past for long periods before making a successful putting their current home on the market. year. “Note that these markets really began offer, like financing or an inspection. But those who already own a home and offer. It’s something of a vicious circle from the to burn around the same time that prices It’s a different situation in cooler markets, standpoint of a supply shortage and a challenge within Toronto itself began to detach from want to move into a bigger place or downsize must also decide whether it’s best to buy or like Calgary, where there’s a plethora of for first-time and move-up homebuyers alike.” fundamentals,” Kavcic said. sell first. The choice depends on the people, available housing and homes take longer to the house and the city, realtors say, though sell, he said. In that city, new listings were up there are some constants that hold true for 0.88 per cent this August year-over-year and sales were down 4.32 per cent, according to most situations. “If it’s a seller’s market, then you need the Calgary Real Estate Board. “There’s no guarantee of how long to be buying first. If it’s a buyer’s market, then you need to be selling first,” said Ara it’s going to take you to sell that home,” Mamourian, broker and owner of Spring Mamourian said, adding it’s better to sell first and then choose to buy one of the many Realty in Toronto. About half of Mamourian’s clients face homes available in less competitive markets. On the other hand, those who sell first can this decision and, in Toronto’s red-hot real estate market, he often advises they purchase find themselves faced with a time crunch and settling for a home that they otherwise a new home first. The number of new listings this August wouldn’t buy or overpaying for a home to in the Greater Toronto Area was down 1.2 ensure their offer beats out the competition, per cent year-over-year, according to the Mamourian said.
The latest homeowner’s conundrum
Visit our Website
www.theasianstar.com
Latest Real Estate Stories