Real estate sales near the proposed Surrey to Langley SkyTrain corridor are higher than in the surrounding areas


It is difficult to compare how land prices in the areas around the Surrey to Langley line will rise compared to what has happened in other SkyTrain corridors.

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Presale condo sales near the proposed Surrey-to-Langley SkyTrain corridor are increasing faster than in surrounding areas, according to real estate experts.

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“We have noticed additional activity in the town of Langley, where the line will end, as well as along parts of the line in Surrey,” said Michael Ferreira, managing director of Urban Analytics, which tracks plans for presale of condos.

The tricky part, he said, is figuring out what can be attributed to SkyTrain as opposed to lifting the housing market from the ‘mad pandemic’.

Based on Urban Analytics’ own data, Ferreira said, there has been “an increase of approximately 15 to 20 percent in the sale values ​​of condos and townhouses in these areas from 2020 to 2021 compared to at 10 to 15 percent “. 100% increase in areas of Surrey and Langley not influenced by the SkyTrain line.

When it comes to selling land, the interest is more glaring. Connor Edinger, Land and Asset Data Manager at Urban Analytics, examined sites with potential for multi-family development along this future SkyTrain corridor from Surrey to Langley.

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Connor Edinger of Urban Analytics, who forecast increases in property and development prices as well as the proposed new SkyTrain line between Surrey and Langley.
Connor Edinger of Urban Analytics, who forecast increases in property and development prices as well as the proposed new SkyTrain line between Surrey and Langley. Photo by NICK PROCAYLO /PNG

He compared the 2016 to 2019 average land price per square foot for these properties with that from 2020 to May 2021, and found that the prices for lots designated for medium and high density multi-family development, such as apartments up to at six and more storeys, rose 24 percent while prices at low-density sites, such as townhouses and townhouses, rose 32 percent.

Total sales of multi-family development sites sold in Langley City in 2021 are expected to reach around $ 73.4 million, based on sales of $ 30.6 million between January and May, Edinger said.

That would be a slight dip from $ 90.1 million in 2020, although it remains a significant jump from $ 33.8 million in 2019 and $ 35.2 million in 2018 – and even compared to to the boom years of 2017 and 2016, when sales were $ 57.4 million and $ 31.9 million, respectively.

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Last week, the federal government officially committed $ 1.3 billion to fund the SkyTrain extension from King George Station in Surrey along the Fraser Highway to 203rd Street in the city of Langley.

For now, this is a corridor marked by many older car dealerships, vacant lots and linear shopping malls in the Surrey part, with more plots of bare land heading towards Langley.

It is impossible to predict how the value of the surrounding land will rise compared to how it did for commercial properties and single family home lots when the Canada Line was built along Cambie Street in Vancouver or the Millennium Line near the Brentwood Mall in Burnaby.

“It’s pretty hard to quantify,” said Kevin Murray, senior sales associate at CBRE’s national apartment group. “Even the Broadway corridor (in Vancouver) is still subject to speculation. Ultimately, the determining factor for the value of the land is the potential for rezoning and the change to the official community plan allowing for increased density due to the planned SkyTrain. If a property is near the SkyTrain, but it does not allow an ascending zone, the value will not change that much.

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He said only properties that allow major development potential, such as the construction of a skyscraper, will see a significant increase.

He pointed to the properties on Fraser Highway that have been owned by Bucci Developments since the mid-1970s. One is valued at around $ 6.5 million and the other at $ 9.6 million, but they “are worth a lot. more according to their density and their development potential ”.

In recent years, Bucci has planned a major redevelopment just east of what is touted by TransLink as a future SkyTrain station near 160th Street. The vision includes 30-story condo towers and a large mixed-use center. But for now, the Bucci sites are occupied by a pair of small low-loaders used car dealers.

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“Overall, all properties located at the corners of SkyTrain stops are likely to see the greatest increase and demand from potential investors / developers,” said Murray.

Bucci Developments hopes to get some shovels in the ground in two years, said Peter Kiidumae, director of asset management at Bucci Investment Corp.

“There is no doubt that (the SkyTrain) will impact real estate values ​​and encourage more intensive development, as evidenced by the increased interest from investors and developers who wish to purchase our properties.”

Langley Mayor Val van den Broek said a final version of its new official community plan and updates to its zoning bylaw was signed in June, and that they will go to a third reading for approval.

“It will be a complete revitalization,” she said. “We want (our transit-focused developments) to be planned in advance. We want to say to the developers, “This is what we want here. “

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