Revitalized Real Estate

Vancouver’s second most expensive condo sold in March 2013 for $8M by Grace Kwok, Anson Realty Ltd.

Once-industrial areas, like Coal Harbour and Yaletown, can present a unique opportunity to risk-taking investors

You may have not realized this, but March 2013 marked a real estate milestone in this province: B.C.’s second most expensive condominium was sold for $8 million at a building, The Melville, in Vancouver’s Coal Harbour neighbourhood. B.C.’s most expensive condo, which sold for $15 million in 2011, is also located in Coal Harbour.

But Coal Harbour hasn’t always been a prestigious place to own real estate. As recent as the early ’80s the area was heavily industrial, composed of shipbuilding facilities, before it started to transition into the upscale residential neighbourhood it is today.

Coal Harbour is only one example of many neighbourhoods that have completely transformed over the last few decades. There have been several other city-directed, master-planned communities around Metro Vancouver, such as Concord Pacific Place and Yaletown—both of which have also seen tremendous financial growth since their early days when they were also zoned for industrial use. Some of those who got in early—immediately after city re-zoning occurred—have seen triple-digit growth on their investment.

Those interested in development and investing should learn more about the official community plan of a neighbourhood they think might be the next Yaletown. Most municipalities post information on city websites and conduct public information sessions, so it’s easy to learn what areas are currently being re-zoned through the city process. This will help everyone better understand what is planned for the future of a neighbourhood, including improved transportation (like bridges, transit and trails), and new amenities such as community centres, schools, parks, restaurants and retail space.

Although being the first to buy in a new or pre-revitalized neighbourhood may feel risky, it can have huge benefits as values often start to rise as a result of new amenities, development and infrastructure.

Remember: what determines market value is simply what someone is willing to pay for it at a particular moment in time. And like any investment, it’s largely about timing. A patient investor who has vision and can look at long-term feasibility is more often rewarded than one who attempts to “flip” real estate. If you are looking to purchase real estate, stay ahead of the curve by talking to your realtor and doing research into areas that you think have great long-term growth potential.

 Cameron McNeill is the president of MAC Marketing Solutions, a Vancouver-based real estate marketing firm which has worked on develpment projects all over B.C., including the new Keefer Block in Chinatown.