In May, the Globe and Mail reported that the 55th floor penthouse at the new Four Seasons Hotel & Private Residences in Toronto sold for a record-breaking $28 million. The nearly 10,000-sq.-ft. condo comes complete its with own self-contained staff residence, 3.6-metre high ceilings, four terraces, panoramic views, and a $7,000/month strata fee!
It might not be surprising that the sale out of Toronto was located downtown. In B.C., the most expensive condo sold this year is in Yaletown for $7.1 million*. But, Yaletown hasn’t always been a prestigious place to own real estate. As recently as the early 1980’s, Yaletown was mostly light industrial, composed of old warehouses and car repair shops, before it started to transition into the trendy place it is today. As we discussed a few weeks ago there have been other master-planned communities such as Concord Pacific Place and Coal Harbour, both of which have also seen tremendous growth in value from their early days when these areas were still zoned for industrial use. For those who got in early after residential re-zoning, many have seen triple-digit growth on their investment. In fact, Coal Harbour, once a shipyard, currently holds the most expensive active condo listing in B.C. at $19.8 million*.
What did it take to have the foresight to purchase here before the price of real estate rose? The term “up-and-coming” is still used throughout a few areas in Metro Vancouver. I encourage you to learn more about a city’s OCP (official community plan) of a neighbourhood you think might be “the next Yaletown.” Better understand what is planned for the future, including improved transportation (for example, new transit, bridges, etc.), and new amenities such as community centres, schools, parks and retail. Although being the first to buy into a new or pre-revitalized neighbourhood may feel risky, it can have huge benefits as values start to rise as a result of new amenities, development and infrastructure.
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 can look at the long-term horizon 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 growth potential.
Cameron McNeill
*According to MLS data at July 8, 2011. Not intended to solicit properties currently listed for sale.
