Developer Westbank paid $32.4 million, or more than $15 million per acre, for the 2.2-acre site of its new Vancouver House residential tower. But that is not the most expensive residential land sale in Metro Vancouver thus far this year.
Top-dollar prize in that category goes to the $83.5 million paid for a
site measuring less than an acre on Alberni Street in Vancouver’s West
“[Residential] land remains the most sought-after commercial real
estate investment in British Columbia,” said an Avison Young mid-year
report on commercial real estate sales.
But one real estate commentator believes the white-hot demand for
residential reveals an economic fault line, because much more is being
spent building condominiums than on places for people to work or learn.
Residential land is clearly leading B.C.’s investment curve.
In 2014’s first half, the top five residential land sales across Metro
Vancouver, at a total of $255.6 million, were worth more than all of
B.C.’s industrial property sales, at $163 million, and accounted for 30%
of the total commercial property transactions in the province.
Other notable sales of residential land, all aimed at high-density
development, include $69 million paid for 4.91 acres on No. 3 Road in
Richmond and the $20.7 million sale of 1.1 acres in Burnaby’s Metrotown
The higher land values could signal rising prices for future multi-family housing units in Metro Vancouver.
The land costs for Vancouver House, for example, translate into $83,000
for each of the 388 condominiums in the twisting tower that will rise
at the north end of the Granville Street Bridge.
Real estate buyers pay much less for non-residential land, the Avison
Young report reveals. Metro Vancouver industrial land, for example, sold
for between $1 million and $2 million per acre this year, while the
biggest sale of commercially zoned land pencils out to $1.45 million per
acre for a 40-acre site near Burnaby’s Brentwood SkyTrain station.
Frank O'Brien, Business in Vancouver