Many people ask us what the Real Estate market will do here in Victoria and in BC. If you have been following our blogs over the past year you know we are very bullish on Victoria Real Estate. What do we base our predictions on, or how do we read our very fuzzy crystal ball? Well, if you look at all the construction that is happening in Victoria and in BC, Real Estate has to be a good investment. When we say construction, we mean the infrastructure in BC.A recent article in the Times Colonist by Carla Wilson reads:
Area’s infrastructure boom hits $434 million
No end in sight for major projects in the region, say construction firms
Massive infrastructure projects are going to help keep the province’s non-residential construction industry booming for years, says the president of the B.C. Construction Association.
“Our existing infrastructure is wearing out — needing updating, needing maintenance — and we need actual new infrastructure, whether it is roads, buildings and utilities,” Manley McLachlan said.
Continuing migration to British Columbia is driving much of the non-residential construction, he said, adding that subdivisions are built to handle the influx and those new residents need somewhere to shop, so a mall may go up.
Across the country, investment in non-residential construction hit its seventh consecutive annual record last year, Statistics Canada said. Much of the increase is due to new office buildings in B.C. and Alberta.
Nationally, commercial, industrial and institutional projects totalled $39.8 billion in 2007, up 10.8 per cent from 2006.
And the outlook for 2008 remains positive, Statistics Canada said, with more than 12,000 major projects under construction for a value of $21.5 billion.
B.C. and Alberta accounted for more than 80 per cent of the overall increase last year. Some of the other factors that influenced the rise were low office vacancy rates, strong consumer demand for durable goods, and high corporate profits.
Investment rose to $5.9 billion in B.C. last year, up from $5.2 billion in 2006.
“We’re not surprised that there’s this kind of an increase and we see it sustaining itself over the next significant period of time — five to seven years,” McLachlan said,
The province’s recently announced $14-billion public-transit strategy delivers necessary long-term planning, he said. “It’s good management and it’s good planning.
But it is telling us that the demand on the non-residential sector for those civil engineering-type projects is going to be substantial.”
Greater Victoria’s non-residential investment totalled $434 million last year, an increase from $407 million in 2006.
Construction in residential and non-residential development has been booming in the capital region. Multi-family and single-family housing projects are sprouting up, along with other major non-residential projects totalling billions of dollars.
Solid economic growth is expected in this region coming years, said Lee King, corporate representative in B.C. for the Canada Mortgage and Housing Corp.
While it will likely slide from its rapid rate in past years, King anticipates seeing 2.6 per cent growth through to 2011.
Examples of the region’s non-residential projects include UVic’s new buildings, which are estimated to cost more than $120 million, Royal Roads University’s $62 million in upgrades and regional sewer system improvements of $61 million.
King also highlighted a potential $1.2-billion sewage treatment plant, $150 million for the Town and Country mall redevelopment and more than $260 million at the Royal Jubilee Hospital, along with several large residential projects such $1-billion development planned at Colwood Corners, and a $500-million project in Bamberton. End of article.
Carla Wilson can be contacted at firstname.lastname@example.org
For more information on Real Estate and Luxury Real Estate you can read our quarterly report.
If you have any comments on the above please drop a note below. Further feel free to contact us any time.
PS. Check out our new website www.PrestigiousPropertiesInVictoria.com and our Prestigious blog at http://prestigiouspropertiesinvictoria.blogspot.com/
Anders Treiberg, Associate Broker, REALTOR®
Properties in Victoria Professionals – Royal LePage Coast Capital.All Articles More Like This