Impacting Local Real Estate – How did 2010 Olympics benefit Vancouver B.C. Market?
The Real Estate Board of Greater Vancouver reports that residential property sales in Greater Vancouver totaled 2,473 in February 2010, an increase of 67.1 per cent compared to February 2009. “We don’t know at this point what long-term impact the Olympics will have on our housing market,” said Board President Scott Russell. “But we do know that activity in our market remained steady through all of the excitement and distraction of the last few weeks.” (cbc news – cbc.ca/Canada/british-columbia)
Luxury Sales Already Jump-Started
The 2010 Winter Olympics were, by all accounts, among the most memorable ever held. Unique Global Estates asked our Luxury Ambassador Spokesperson for Salt Spring Island, Li Read, for her impressions and how she felt the Olympics had impacted the luxury real estate market in the region.
“After the Olympics, I thought we would see a turn-around on interest from buyers within 5-6 months or so, but it happened much more quickly, in fact it has already started; by Easter we had five interested buyers directly linked to discovery through the Olympic Games. The world is in such flux right now, what we’re seeing are investors interested in owning hard assets – irreplaceable, real value. In the B.C. region we are fortunate to be in the position of seeing growth despite the faltering of the current global economy – for every step back there have been 2 forward. So yes, real estate has been impacted,” said Read. “I’m so excited for the buyers who have fallen in love with this area. On Granville Island, a state-of-the-art penthouse/condo has reportedly sold in the many million price range, apparently to an Asian investor who discovered the Northwest by attending the Games.”
The World Discovers Vancouver’s Beauty
“There is a great amount of activity extending into the Luxury market,” Read shared. “Real estate investments here are unusual in that the west coast creates interest of movement in north to south, California through Canada. We don’t see a lot of buyer interest east of the Rockies. Buyers experienced discovery in a profound sense; the Olympics allowed visitors to appreciate this region more intimately, coming to the fore in the minds of global investors in a way that the Northwest hasn’t before ~ we are a hidden gem that’s finally been discovered.
5 Reasons International Buyers are Drawn to the Northwest
Read stated that there are five keys to investor interest, why so many are now clamoring for property in Vancouver B.C. “We are blessed with an incredibly beautiful setting and a great climate. The region is positioned on the U.S. border which generates huge interest for business and commercial development. We are so close to Seattle…a two hour drive and you’re here. It’s a two hour flight from San Francisco. Investors and business developers are supported by a friendly economy…there’s plenty of room for expansion professionally. We enjoy dramatically increasing property values due to limited supply, unique geography, and the by-laws which exist to cap or limit growth and protect our environment.
In explanation, Read said “International buyers know that Europe, Australia and New Zealand – though attractive – can’t offer proximity to the U.S. and buyers find this shared territory very attractive. Europeans are also drawn to the ‘real’ wilderness here, a short float plane ride can show anyone how limited civilization’s footprint is, the mountains and rugged terrain are so close and so vast. One of the other factors that thrilled international visitors was the fact that you can ski in the morning here and sail in the afternoon. For businesses, geography is erased, there are no borders anymore, and most residents here consider the whole Northwest as a playground of equal beauty and delight, from Portland to Whistler, from the San Juan’s to the Gulf Islands; that sense of expansion works for businesses too.”
Limited supply has created a sense of interest and urgency. Properties and land for development are restricted for two reasons. Read gave us the details, “First reason is topography/geography; like the Amalfi coast in Italy we have only a thin ribbon of land on which to develop, the rest is pure, rugged beauty. We are on the doorstep of the Coast Mountains and they continue on up into the Yukon, we are bordered on the other side by the Sound. Real estate possibilities therefore are focused on the valuable developed properties already in existence. Buyers are finding that value simply sustains and grows dramatically over time. The second reason is controlled growth. Our municipalities are struggling to provide what works while protecting the precious environment which makes this region so amazing. The B.C. Government even controls growth on the Gulf Islands which already have such small areas of developable land. In many areas growth is already capped, making real estate very, very valuable. Like New York, even with wall to wall skyscrapers, the land which can be developed is tiny, there’s no expandability to the envelope.”
The World Comes to the Northwest
We asked Read if, in her understanding, others in the world are curious about the Northwest now, and whether the Olympic sites, (beautiful Vancouver B.C. and Whistler), have intrigued international investors enough to consider buying properties.
“The Olympics create a unique view of priorities, and the beauty of this area came as such a surprise to so many, that those with whom I’ve spoken are considering rewriting their life script, looking into a way of life they may not have considered before. Funny, spring began early, and while it was a thorn in the side of the Olympic Games development team, for visitors it was such a powerful lure, our fantastic weather helped the world appreciate Vancouver and the Northwest as they hadn’t before,” explains Read. “We had a big party going on here, and the rest of Canada noticed; I saw nationalism here for the first time, people painting red maple leaves on their cheeks, it seems the whole of Toronto turned out too. Americans flocked here as well, there was just such an explosion of recognition for this region on both sides of the border.”
“The spinoff into real estate options, especially in the luxury segment offered in Vancouver (San Francisco of the north?) and Whistler (an Aspen kind of address) boiled down to a ‘discovery moment’. The entire city, which is known as one of the most beautiful and livable cities in the world, welcomed the world and the response was clearly positive,” recalled Read. “Media coverage certainly made sure that the world knew we’re not the land of ice and snow on this thin ribbon of the Pacific Northwest Coast. The cosmopolitan ambiance of Vancouver and Whistler also appealed to the international population. The message was clear, ‘Come…check us out!’
“Beauty, a welcoming population, a stable country economically and politically….a limited inventory in real estate offerings which quickly gain value….hmmm….” says Read, “something’s started at the Olympics, and I am excited to see it take off.”
For more information, contact:
Li Read, Managing Broker
Sea to Sky Premier Properties (Salt Spring)
# 4 – 105 Rainbow Road, Salt Spring Island, B.C., Canada V8K 2V5
cell: 250-537-7647
Posted: July 19th, 2010 under British Columbia.
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