bcbusiness.ca March 2015 BCBusiness 35
ket in 2015, it's probably this: Some areas
and sectors will shine, some will muddle,
and others will limp. Here are three that
might shine.
Rapid Transit Corridors
It's inarguable that property prices have
risen significantly along Metro Vancou-
ver's SkyTrain lines, and clear also that
the trend toward densification, upzoning
and higher valuations has only acceler-
ated in recent years. The wall of worry for
investors has more to do with the timing
and routing of potential additions to the
network.
The first obstacle is a June vote man-
dated by the provincial government to
approve a plan to raise $7.5 billion for a
new 10-year transit infrastructure plan,
including the Broadway subway and light
rail in Surrey. There's no guarantee the
vote for a new 0.5 per cent regional sales
tax will pass, which has perhaps helped
delay price appreciation along the routes.
Even if voters cooperate, it's not cer-
tain how quickly new lines will be built
and in what order, let alone what the
effects might be. A Broadway route might
have less impact from an appreciation
point of view, as much of the corridor
is already fairly dense (with accordingly
high property values), while in some of
the other areas community opposition to
densification will be intense. Meanwhile,
current plans for an extension along King
George Boulevard and from the SkyTrain
terminus to Langley call for light rail
transit, which doesn't attract ridership
as readily and might not precipitate the
same kind of densification.
Still, with half of the region's popula-
tion growth through 2041 slated by the
Metro Vancouver Regional District to
occur south of the Fraser, Surrey genu-
inely is a city on the move—yet with
real estate valuations that remain rea-
sonably attractive. The median selling
price of detached houses hovers around
$600,000 compared to $960,000 in
demographically similar East Vancouver,
and Avison Young's office space survey
shows a lease rate for Class A space top-
GOING UP
Property prices tend to rise
along SkyTrain lines—and
consequently, so does
development.
