This is a follow up to yesterday's blog in which I showed the correlation between offshore buyers and White Rock and South Surrey's single family housing market.
Today, the Globe and Mail followed up with another article entitled Competition rising for multi-family housing developers in the Lower Mainland. The author, Frances Bula, stated that "fierce competition for a limited number of properties is wreaking havoc in Lower Mainland's single-family-house market". To every yin there's a yang, and that is so true in real estate. The boom in high end home sales is having a trickle down effect all over the lower mainland.
Bula goes on to state that the competition, that is the buyer(s) losing in the bidding wars, are moving onto the larger, muilti-family sites. Now personally, I'm not seeing the boom in the higher end condo market yet, but as day must follow night, it makes sense.
Although there are approximately the same number of developer property transactions in the Lower Mainland in the first six months of 2015 versus 2014, the value of the purchases is up 63%. In the Surrey condo market, the purchase of development properties was $34,000,000 for the first half of 2015.
Kirk Kuester, who is Colliers executive managing director, was quoted extensively in the article. One key statement was “It’s a function of low interest rates and a lot of consumer demand for product,” he said. As single-family-house prices have soared, it’s pushed buyers to the condo, townhouse and rowhouse market in increasing numbers.
If this trend continues, the somewhat stable prices in the South Surrey and White Rock condo market will be on the upswing.