DAN TOULEGOET (WESTERN INVESTOR) - Vancouver has been ranked Canada’s #1 market for real estate investment in 2020, in the annual PwC Canada Emerging Trends in Real Estate report, released this week.
In the “Markets to Watch in 2020” section, the report authors said that “despite some headwinds, Vancouver re-emerged at the top of our survey this year for overall real estate prospects.”
The report observed that Vancouver’s office and industrial sectors were both doing “particularly well” with very low vacancy rates and robust development.
It continued, “Looking at the housing market, the long-term trends remain favourable. Recent softness is largely a reflection of a correction from an overheated environment and policies that have caused investors, whether foreign or domestic buyers, to exit the market.”
PwC’s report added, “The [Vancouver housing] market rise was too strong, and now it is reacting to that. However, by the time it is done, it will be in line with where a steady increase should have gotten us over the years… With a strong economy and population growth, Vancouver remains a desirable place to live that will eventually draw buyers back into the market. The question isn’t if, but when, they’ll come back.”
Toronto was ranked in the #2 spot, followed by Ottawa, Halifax and Montreal rounding out the top 5.
Of the Western Canadian and Prairie cities, Saskatoon came in sixth place, Edmonton eighth, Winnipeg ninth and Calgary 10th. The other Canadian city to make PwC’s top 10 was Quebec City in seventh spot.
Click here to see the online version and download the full report.
GLEN KORSTROM (BUSINESS IN VANCOUVER) - The City of Vancouver is touting its enforcement for helping its year-old short-term rental program run effectively.
While the city believes that 73%, or 4,266 of the 5,866 active short-term rental hosts are abiding by the rules, its staff has flagged 27% of all short-term rental addresses for audits to confirm compliance with city regulations that went into effect on September 1, 2018.
Those new rules made it legal for residents to rent their primary residences for stays that were less than 30 days – something that was technically illegal before but was a law that was rampantly flouted with no enforcement.
Renting non-primary residences remains illegal, and Business in Vancouver has documented in past stories how there are workarounds that enabled hosts to skirt the city’s licensing requirements.
The intent of the city’s new rules were to protect rental stock and eliminate unfair competition for bed-and-breakfast businesses.
There were some irregularities with the city’s statistics.
It was not immediately clear, for example, how the city could have listings at 4,366 addresses that staff believe to be in compliance if the city has only issued 4,025 short-term business licences. That would logically mean that 341 hosts have more than one primary residence, which would not be allowed.
Regardless, city data released September 5 showed that city staff has issued:
“The audit program has also resulted in a tenfold increase in licence suspensions and voluntary licence cancellations since the spring,” the city said in a news release.
“Short-term rental licenses are suspended as result of operators not meeting principal-residence requirements, failing to have strata or landlord permission to operate, operating illegal, unsafe or nuisance dwellings or failing to provide the requested documentation.”
The city said that it continues to escalate legal action against commercial operators who are violating regulations.
In August, a commercial operator who had a combined 35 short-term rental listings at two properties, and who was previously fined $20,000 in provincial court, was fined two additional charges of $10,000 by the courts for unauthorized short-term rental activity at their second property. Total fines issued against this operator are $40,000.
Two other commercial operators have been found guilty in BC Provincial Court for operating and marketing without a business licence.
“Since day one, the goals of our short-term rental regulations have been to protect long term rental housing, ensure public safety and bring operators into compliance with our bylaws,” said the city’s chief licence inspector, Kathryn Holm.
“This is a dynamic market with operators and listings continually shifting. Our approach over the last year, and in particular the adaptations we’ve made in the last five months, reinforce that our efforts are working and will continue to evolve as we go forward.”
Holm and her team plan to bring a review of the short-term rentals program to council this fall.
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