English   |    中文（简体） July 2012     Luxury Market Stumbles as Asian Buyers dry up Midway through 2012, BC's luxury market is showing signs of cooling down. Through the first 6 months of 2012, 243 homes priced at over $3 million have sold compared to 466 through the first 6 months of 2011. While this may seem like a significant drop, 2012 is still far ahead of 2010, when 375 $3 million homes sold over the year, 169 in the first half.   Macdonald Realty manager Matthew Lee, whose Vancouver office sold the most expensive home in BC so far this year ($19.8 Million; 4803 Belmont Ave., Vancouver), believes that the market has reached a tipping point. "Prices have been going up so much the past few years that we're now seeing a combination of buyer fatigue and seller intrigue," says Lee, "buyers are looking at prices and don't believe they can go up much more in the near term, so they're taking their time. Conversely, sellers are seeing these sky high prices and have finally decided to cash out."   UBC real estate professor Tsur Sommerville has argued that because luxury real estate tends to be bought with existing wealth rather than incomes, it is much more unpredictable than the entry-level market. Luxury real estate prices tend to be disconnected from economic fundamentals like income, and because of this, prices are much more driven by psychology and people's belief in what future values will be. And with the faltering real estate market in China, the uncertainty in Europe, and current high prices, you're seeing a more cautious buyer.   Or at least a more cautious Chinese buyer.   Most neighbourhoods that have been bought up by wealthy Chinese buyers over the past few years - Vancouver (Westside), Richmond, West Vancouver - are now in a Buyer's market, or have high inventories with lower sales. Other, more affordable, markets - Vancouver (Eastside), North Vancouver - are still experiencing a seller's market. This was predicted in a Macdonald Realty forecast put out in December 2011, which predicted that more expensive jurisdictions in BC would experience a flat or sagging market while cheaper alternatives continue their upward trajectory.   Most Expensive Homes Sold so far in 2012: 1) $19,800,000 2) $14,200,000 3) $12,388,000 Most Expensive Condos Sold so far in 2012: 1) $5,900,000 2) $5,250,000 3) $5,150,000       (Click chart to see larger image)

CBC News

Prices remain firm even though sales hit 10-year low

Vancouver home sales hit their lowest level in more than a decade in June, tilting the market in favour of buyers,

the city's real estate board said Wednesday.

 

The Real Estate Board of Greater Vancouver (REBGV) reported 2,362 sales in June, a decline from 2,853 in May

and also down 27.6 per cent from a year earlier when there were 3,262 sales.

 

The board said June sales were the lowest total for the month in the region since 2000, inching Vancouver toward

a buyer's market.

 

"There is an opportunity for you to be able to be more competitive in pricing," said Eugen Klein with the REBGV.

 

"There's an opportunity for you to get better terms in the very least, and those types of opportunities haven't been in

the marketplace as prevalent in the last five to 10 years."

 

Lillian Noble is trying to sell her home on Vancouver's West Side. The neighbourhood's expensive homes were in

high demand a year ago, but Noble hasn't received a single offer since her home was listed for just under $2

million almost three weeks ago.

 

"Just yesterday [my real estate agent] told me it's a soft market and that things aren't selling very quickly," said

Noble. "Of course, everybody wants you to lower your price to as low as possible."

 

Noble isn't dropping the price yet, as she's in no rush to sell, and she's not alone.

 

Less competition for buyers

Despite a drop in the number of sales, prices in what was once the country's hottest real estate market have

remained firm, the REGBV said.

 

In June 2012, the housing price index for residential properties in Vancouver was still up 1.7 per cent from a year

ago.

 

"Overall conditions have trended in favour of buyers in our marketplace in recent months," Klein said. "This means

buyers are facing less competition and have more selection to choose from compared to earlier in the year."

 

June sales of detached properties in Vancouver totalled 921, down from 1,471 in June 2011, while the price for

detached properties increased 3.3 per cent from a year ago to $961,600.

 

Sales of apartments slipped 19 per cent to 1,026 in June from 1,266 a year ago. The benchmark price of an

apartment increased 0.3 per cent from June 2011 to $376,200.

 

Meanwhile, there were 415 attached property sales in June, down from 525 a year ago, while the benchmark price

decreased 0.1 per cent from a year ago to $468,400.

Sales cool as mortgage rules tighten

New listings for detached, attached and apartment properties in the Greater Vancouver region totalled 5,617 in

June, down from 6,927 new listings in May and from 5,793 new properties a year ago.

 

The total number of residential property listings on the board's MLS service was 18,493, up 3.27 per cent from May

and up 22 per cent from this time last year.

 

Despite a drop in sales, prices in the Vancouver real estate market have so far remained firm. (Jonathan

Hayward/Canadian Press)

The slowdown in sales in Vancouver comes ahead of changes by Ottawa to tighten mortgage lending in Canada.

 

Finance Minister Jim Flaherty moved last month to cool the red hot condo markets in Toronto and Vancouver by

tightening the rules for borrowers, including cutting the maximum amortization period for government insured

mortgages cut to 25 years from 30.

 

As well, the federal regulator of financial institutions has told lenders they can only issue home equity loans up to

a maximum of 65 per cent of the property's value, down from the previous 80 per cent.

 

Published by the Real Estate Board of Greater Vancouver

 

The number of residential property sales hit a 10-year low in Greater Vancouver for June, while prices remained

relatively stable.

 

Daljit Thind ( L ), President and CEO of Thind Properties Ltd., John Skender ( C ), head of marketing and Fred Moy, head of sales Thind Properties, at Skyway Tower site on Kingsway in Vancouver

Photograph by: GLENN BAGLO , VANCOUVER SUN

BY BRIAN MORTON, VANCOUVER SUN

East Vancouver’s Kingsway has long been known for its steady stream of auto dealerships, strip malls, fast-food

restaurants, cut-rate motels and as a quick route to somewhere else.

 

That’s changing.

 

In what’s regarded by many as part of the area’s renaissance, a 12-storey condominium tower in the 2700-block

of Kingsway is now being marketed as part of a city plan to take advantage of the Norquay neighbourhood’s

central location and turn it into a more people-friendly place emphasizing higher densities, newer shops and

services, wider sidewalks and other public amenities.

 

Skyway Towers, the first highrise development under the Norquay Village Neighbourhood Centre Plan, is a 130-

unit project that includes nine commercial units to be built on the site of the old Wally’s Burgers.

 

It includes two buildings – the 12-storey tower and a four-storey building – with a 13-metre-wide breezeway

between them.

 

“We’ve sold about 50 per cent [of the units] in pre-sales,” says John Skender, head of marketing for Thind

Properties Ltd., Skyway’s developer. “Construction should start as soon as we have a building permit, within the

next two months. We’re looking at early 2014 for occupancy.

 

“I think it fits in beautifully [with the Norquay plan].”

 

But Skyway is just one of many new buildings anticipated for the area.

 

“Some major tracts have been purchased and there will be some huge developments going up,” said Skender,

whose Skyway project is aimed at affordability with most units priced between $245,000 and $475,000. “Change

is always a little difficult, but there are sections of the city where densification will improve the neighbourhood. This

is one of them. Nothing much has changed there in the last 30 years. I see [Norquay] doing a 180-degree turn.”

 

Under the Norquay plan — which was approved in 2010 despite opposition from many residents critical of

highrises in their neighbourhood — Kingsway will experience more housing variety, including towers with a

maximum 12 storeys in the plan area, and low-rises, townhomes and duplexes behind them.

 

It aims to maintain a single-family residential character in key areas, a concern of critics.

 

The plan for the east Vancouver neighbourhood – between Gladstone in the west to Killarney in the east and 41st

in the south to 29th in the north — also includes greater affordability, safer pedestrian amenities and good transit

and bicycling connections.

 

However, the plan also encountered opposition from residents opposed to the densification.

 

Hubert Culham, for example, wrote in The Vancouver Sun in November 2010 that council’s approval of the plan

“sealed the fate” of his neighbourhood.

 

“At that moment Norquay ceased to exist as a cohesive, livable, medium-density and very ‘green’ neighbourhood,”

Culham wrote. “This gave the city planning department the right to chop Norquay up, level it and festoon it with

highrises, effectively a mass rezoning to much higher density.”

 

Today, Culham said, his concerns remain and he’s not keen on towers such as Skyway in his neighbourhood.

“The situation hasn’t changed. It shouldn’t be there. It doesn’t fit with the community, which to me is important. I

don’t want the city to look like Manhattan.”

 

However, East Vancouver resident and city councillor Kerry Jang said the Skyway Tower provides “a real need”

and fits well with the plan.

 

“We’re trying to bring life, livability and vibrancy to the area,” he said. “Now, it’s a provincial highway [and] it’s a bit

run down. It can take a lot more density, but we want to be sensitive to single family dwellings. So we’ve limited

[towers] to 12 storeys.”

 

Jeff Hancock, senior manager for real estate market intelligence company MPC Intelligence, believes east

Vancouver and the Kingsway area particularly, is a great opportunity for developers as the area changes.

 

“The land is cheaper, relatively speaking, and there’s great access to the city and Burnaby. There’s well-

established Vietnamese and Chinese communities and they’re big buyers.”

 

Matt Shillito, the city of Vancouver’s assistant director of planning, said the Norquay plan will feature a “transition”

of housing types starting with highrises on Kingsway, four-storey apartment buildings behind them, and row

homes, townhouses and duplexes behind them.

 

He noted while the Skyway plan had considerable support, there was also concern about its height. “But people

recognize it’s an area in need of revitalization [and] it’s very much in conformity with the plan.”

 

He said although the plan stipulates a maximum of 10-12 storeys on Kingsway, there are a couple of areas within

the plan where towers could go 14 stories and that the city has received one such application on the Canadian

Tire site at Gladstone and Kingsway.

 

“We want to encourage the redevelopment of blocks on Kingsway to improve the retail environment, the

streetscape and the public realm,” said Shillito, who said it will take up to 25 years to complete the plan. “Right

now, it’s very hostile to pedestrians.”

 

The kitchen is one of the first places that homeowners look to renovate. Unfortunately, a lot of people make

common design mistakes that could be costly or downright unattractive. If this is your first time, there are a couple

of things you should know before starting your kitchen renovation project. What you do to your home can make or

break the potential it has to be resold at a higher price. Of course, even if this isn’t your ultimate goal, you should

still want the value of your home to increase after a successful remodeling project.

 

1.       Installing your sink in an unattractive location: It doesn’t seem like a big deal, but where you install your

kitchen sink can make a big difference in the design of your kitchen. Since plumbing is already installed in your

home, you would think that you’d have to install the kitchen sink in proximity to where the pipes are. But if you really

want to revamp your kitchen, you can instead hire a plumber to relocate the plumbing. This will give you more

flexibility for redesigning your kitchen. If you don’t like the location of your kitchen sink, then this is definitely great

news.

 

2.       Not forming a work triangle: The position of your oven, sink and refrigerator should be carefully placed, so

that you can get to all three seamlessly. This can definitely be a deal breaker when it comes time to showcase

your home to potential buyers.

 

 3.       Having a confined or isolated design: No matter what size your kitchen is, having it proportional and

spacious is key. There is such a thing as being too spacious (isolated) or being too confined. Try to be

somewhere in the middle. Even the smallest of kitchens can feel open and spacious.

 

4.       Not making use of kitchen space:  A lot of kitchens have unused space that can easily be transformed into

something desirable. For instance, if you have a small kitchen, you can make up for the lack of space by installing

an extra-long upper cabinet. You can decorate it with lighting or plants along the molding. The empty space above

your fridge is a great place to have one installed as well.

 

 5.       Insufficient counter space: Most homeowners tend to upgrade their cabinets with popular stones, but don’t

think to add additional countertops. If you don’t have enough cooking space or could use more, you should

definitely add more around the sink and stove.

 

 6.       Insufficient storage space: There are two levels of space commonly found in kitchens, upper level and

lower level cabinets. If either or are insufficient, use empty wall space to add more. This would go perfectly with

additional countertops you have had installed.

 

 7.       No dishwasher: If you live in a home that isn’t equipped with a dishwasher, potential homebuyers may

quickly overlook it. If you don’t have adequate plumbing or electric, you can hire a contractor to set everything up for

you.

 

 8.       Small refrigerator space: When a home is first built, it caters to the appliances that are going to be in it

initially. If you’re ever going to upgrade to a double door refrigerator or one that is taller, it is important that the

space around it accommodates. If it doesn’t then this should be remodeled.

 

 9.       Not enough lighting: The kitchen should be a place that is filled with natural and artificial lighting. Installing

additional windows and decorative lighting like hanging lights and recessed lights can definitely add spunk to your

cooking space.

 

 10.   Not having a backsplash: For some, this is all about the design, but for many, it’s about cleanliness.

Backsplashes can be installed behind the stove and bordered throughout the kitchen above countertops. It’s easy

to clean off grease and food particles that splash on it, which is desirable for many.