Season's Greetings

I would like to take this opportunity to wish everyone all the best

over the holiday season and for 2008.

Dan McCarthy

RE/MAX Central

Market Update

BC Home Sales Surpass 2006 Total in 11 Months.

Vancouver, BC – December 18, 2007. British Columbia Real Estate Association (BCREA) reports residential sales volume on the Multiple Listing Service® (MLS®) in BC climbed 26.4 per cent to $3.21 billion in November, compared to the same month last year. Residential unit sales increased 11.9 per cent to 7,088 units during the same period. The average MLS® residential price reached $452,755, up 12.9 per cent from November 2006.

“BC home sales have already surpassed the annual total for every year except 2005, and there’s still one month to go,” said Cameron Muir, BCREA Chief Economist. A total of 98,014 homes were sold through MLS® during the first 11 months of 2007, exceeding the 2006 total of 96,671. “While home sales in the province are unlikely to break the record 106,310 units established in 2005, they are on track to exceed 100,000 units this year, the second highest ever recorded,” noted Muir.

“Despite eroding affordability, consumer demand remains strong,” added Muir. “Employment growth, rising wages and salaries and population growth buoyed by migration continue to underpin housing demand. Access to home ownership is also being bolstered by an increasing proportion of relatively affordable condominiums in the housing stock, and many consumers are taking advantage of longer mortgage amortizations which lower their monthly carrying costs.”

Year to date, MLS® residential sales volume increased 19.2 per cent to $42.95 billion compared to the same period last year. Residential sales climbed 6.2 per cent to 98,014 units over the same period. The average residential sales price rose 12.2 per cent to $438,189 January through November.

Market Review

Greater Vancouver housing sales rebound in November.

Derrick Penner
Vancouver Sun
Monday, December 17, 2007

A significant November rebound in Greater Vancouver housing re-sales helped push overall activity above 2006 levels, the Canadian Real Estate Association reported. The association registered 2,952 sales through the Multiple Listing Service, a 22 per cent increase from the same month a year ago.

As of the end of November, Greater Vancouver saw 37,021 units change hands, which is 6.6 per cent more than the number of units that were sold up to the same point in 2006.

The average unit price topped $577,000 in November, up 11.2 per cent from the same month a year ago.

Across Canada's major markets, housing MLS sales surged to a new annual re-sale record of 345,577, up 2.5 per cent from the previous high of 336,646 reached in 2005. "Demand remains strong due to continuing job and income growth and upbeat consumer confidence," Gregory Klump, association chief economist said in a press release.
However, in an interview, added that pending tax changes in Ontario likely spurred some Ontario buyers to rush their decisions to buy.

Construction Update

Metro Vancouver boasting the most housing starts in 30 years.

Vancouver Sun
Monday, December 10, 2007

VANCOUVER - Builders in Metro Vancouver started hammering up more homes in November than in any month in the last 30 years, Canada Mortgage and Housing Corp. reported Monday.

However, more and more of those homes are condominiums and townhouses. Up to the end of November, the growth in housing starts was driven by a 30-per-cent surge in multi-family-housing construction. "Construction of single-family homes has declined in all communities except North Vancouver, where infill building has this district bucking the trend," Robyn Adamache, a market analyst with CMHC said in a news release.

Builders started work on 2,704 homes in Metro Vancouver in November, compared with 1,405 in the same month a year ago. For the first 11 months, Metro Vancouver contractors started on 19,491 units, and only 3,826 of them single-family homes. In the first 11 months of 2006, builders had started on 17,398 new homes, with 5,386 of them single-family homes.

Peter Simpson, CEO of the Greater Vancouver Home Builders' Association said the results to date already make 2007 the most active year for residential construction in more than a decade. Province-wide, November housing starts reached 3,718 in November. Nationally, the pace of new-housing construction reached an seasonally adjusted average of 227,900 units for the year.

"Housing starts remained strong in November and are consistent with our new-home construction forecast for 2007," Bob Dugan, CMHC's chief economist. However, unlike Vancouver, Dugan said housing strength in the rest of Canada "is attributable to the good performance of single-detached home starts, which reached their highest level since March, 2006."

Commercial Real Estate

Vancouver has lowest office vacancy rate in Canada.

Financial Post

Wednesday, December 05, 2007

VANCOUVER - Vancouver has the lowest office space vacancy rate in the country, according to a new report from Cushman and Wakefield LePage.
The city has a forecast vacancy rate of 2.1 per cent for the end of 2008. Much of the tightening is due to no new supply coming on line. Only 80,000 square feet of new construction is expected to be finished next year.

Downtown Toronto is also suffering from a lack of office space, the study says. The real estate company said Wednesday that vacancies in Toronto's central office market will reach a "tight" 3.8 per cent in late 2008. That's way down from the 6.2 per cent vacancy rate at the end of 2006. "We are now at the point where demand will have to slow in the central market, simply due to the lack of available space," said Paul Morse, Cushman & Wakefield LePage's senior managing director of office leasing. "Those expanding or entering the market are now considering space in mid-town or further into the 905 regions to meet their space needs."

The Toronto office space crunch is clearly influencing the national vacancy rate which is expected to drop to 5.6 per cent in urban centres in the fourth quarter of 2008, down from the current 6.2 per cent.Toronto is home to 40 per cent of all of the country's office space. Cushman & Wakefield surveyed five cities across the country and found vacancy rates dropping in every city but Calgary.

However, the oilpatch continues to be a relatively tight market to rent in with the downtown vacancy rate projected to rise to 3.6 per cent by the end of next year. Suburban vacancies in Calgary are forecast to rise to 6.3 per cent. Part of the reason for the increase in vacancies is a jump in supply that will see almost four millions square feet of new office space completed next year.

"Calgary has had a wild ride over the past few years," said Morse. "We've seen space incredibly tight - down to 0.4 per cent vacancy in the core - and now we're seeing a healthy rebound to more manageable levels."
The real estate company predicts tenants are going to be forced to consider alternative options for space next year, including moving into less desirable Class B and Class C buildings.

Even the moribund Montreal office market is showing some signs of recovery. Cushman & Wakefield LePage said Montreal is forecast to have vacancy levels not seen since 1989-1990. After years of being stuck in double digits, Montreal's overall vacancy rate will hit 8.9 per cent next year and the downtown core will see a vacancy rate of 7.6 per cent. "There is a great deal of optimism in Montreal with rental rates increasing, vacancy dropping and absorption levels remaining positive," said Morse.

Financial Post

Market Review

This autumn, when a downtown Vancouver condominium was listed for $18.2 million, It caught the attention of The New York Times. In a feature on Vancouver real estate, Vancouver was described as an appealing multicultural city with a cosmopolitan feel, a vibrant urban lifestyle and a temperate climate, surrounded by mountains and water.

With this level of international exposure, can we expect prices to go up?
In the Real Estate Board area, our market has been on an upswing since
2002. Annual growth in sales has run about 5.5 per cent and home prices
have increased about 14 per cent per year.

Will this market continue?

To find out, we asked BC Real Estate Association Chief Economist Cameron Muir.

Muir explains that the fundamentals are in place for the market to continue.“ The Lower Mainland’s economy is expanding at 3.5 per cent per year. There is a record low unemployment rate of 4.1 per cent and a tight labour
market (more jobs than employees) which puts upward pressure on wages and salaries.”

Muir notes that despite eroding affordability, there is a wide mix of home types available. A look at listings indicates that in October there were 250 condominiums in the Real Estate Board area priced less than $200,000.
If we go up to $250,000, there were 672 condominiums and 44 townhomes. If a potential buyer had $300,000 to spend they could have chosen from 1,250 condominiums and 147 townhomes Board-wide.

“By year end 2007, 60 per cent of home sales in the Greater Vancouver Area will be either attached units or apartments, and 77 per cent of housing starts are expected to be multi-family,” say Muir. “Vancouver will also continue to be at the forefront of high density residential development.”

Where is the market headed?

Muir forecasts that MLS® home sales in the Board area will increase five per cent to 38,100 units in 2007, from 35,507 units in 2006. A lack of affordability will continue to be a barrier for some home buyers and will have an impact on consumer demand in 2008, leading to a decline in homes sales of 36,100 units. Home prices will also climb less
rapidly.

If we build it, will they come?

Muir forecasts that housing starts will decrease about three per cent overall in 2007, to 18,100 from 18,705 in 2006, a reflection of the Vancouver civic strike which halted construction and inspection permits. Starts will again rise in 2008 to 18,300 units with multi-family construction leading the way.

Muir cautions that while affordability is deteriorating, market conditions continue to be favourable. “Population in the region is forecast to increase five per cent between now and 2010. Employment and salaries are on the rise. Mortgage rates will remain low.
This is all good news.

Cameron Muir, Chief Economist, BCREA

Market Update

Housing sales continue to rise in November.

Vancouver, B.C. December 4, 2007.

The Real Estate Board of Greater Vancouver (REBGV) reports that total residential sales reached 2,883 units in November 2007, an increase of 22.2 per cent compared to 2,358 sales in November 2006, and a 1.9 per cent decrease compared to the 2,938 units sold in November 2005. Property listings increased 6.6 per cent compared to last year’s levels, with 3,377 active listings at November month-end, compared to 3,168 during the same period last year.

“The housing market continues to be strong,” says REBGV president Brian Naphtali. “November figures show strong growth compared to last year, are basically on par with figures from 2005, and are 16 per cent higher than the same period in 2004.

“Affordability is a key question,” Naphtali says. “Our data indicates that about 60 per cent of residential homes purchased in November were multi-family, which includes condos and townhomes. The benchmark price for a condo in Greater Vancouver is about $375,000. However, there are units available for considerably less than this price. For example, the benchmark for condos in Port Coquitlam in November was $243,624; in Maple Ridge, $254,703; and in Coquitlam, $283,830.”

According to Multiple Listings Service® (MLS®) data, sales of apartment properties increased by 21.5 per cent to 1,276 sales in November 2007 compared to 1,050 sales in November 2006. The benchmark price of an apartment property in Greater Vancouver, calculated by the MLSLink® Housing Price Index, is $374,393, up 13.6 per cent from one year ago.

Sales of attached properties increased by 33.7 per cent in November 2007 to 540 sales, compared to 404 sales in November 2006. The benchmark price of an attached unit is $455,332, up 11 per cent from a year ago.
Sales of detached properties increased by 18 per cent in November 2007 to 1,067 sales, compared to 904 sales in November 2006. The benchmark price of a detached unit is $729,011, up 12.6 per cent from last year.

Bright spots in Greater Vancouver in October 2007 compared to October 2006:

DETACHED:
Burnaby up 47.4% ............................. (115 units sold, up from 78)
Coquitlam up 21.1%............................. (92 units sold, up from 76)
Maple Ridge/P. Meadows up 12.1% ... (111 units sold, up from 99)
North Vancouver up 24.3%................... (87 units sold, up from 70)
Port Coquitlam up 30.6%...................... (47 units sold, up from 36)
Richmond up 17.4%............................ (108 units sold, up from 92)
Squamish up 75%.................................(28 units sold, up from 16)
Sunshine Coast up 30.2%..................... (56 units sold, up from 43)
Vancouver East up 20%.................... (150 units sold, up from 125)

APARTMENTS:
Burnaby up 11.1%............................(160 units sold, up from 144)
Coquitlam up 40.4%............................. (73 units sold, up from 52)
North Vancouver up 39.4%................... (99 units sold, up from 71)
Port Moody/Belcarra up 227.3%........... (36 units sold, up from 11)
Richmond up 23.3% ......................... (159 units sold, up from 129)
Squamish up 125%................................ (18 units sold, up from 8)
Vancouver West up 29.3%............... (433 units sold, up from 335)

ATTACHED:
Burnaby up 16.9%................................(76 units sold, up from 65)
Maple Ridge/P. Meadows up 32.4%......(49 units sold, up from 37)
New Westminster up 128.6% ................. (16 units sold, up from 7)
Port Coquitlam up 45.8%...................... (35 units sold, up from 24)
Richmond up 94.5%............................ (107 units sold, up from 55)
Squamish up 107.7%............................ (27 units sold, up from 13)
Whistler/Pemberton up 110%............... (21 units sold, up from 10)

SOLD

I am pleased to announce the sale of 230 Blackman Street, New Westminster.

For further information please visit:

http://www.danmccarthy.ca

Commercial Real Estate

Office rents rise only slightly in Vancouver. They're not even the most expensive in Canada

Marke Andrews
Vancouver Sun
Friday, November 23, 2007

The cost of renting office space in downtown Vancouver climbed slightly during the past six months, and rose at a greater rate outside the downtown core. But the city still looks like a deal when compared with London, Moscow or Mumbai.

In a new report from CB Richard Ellis, the world's largest real estate services company, Vancouver was ranked the 52nd-most expensive city in the world to rent office space, and the third most expensive Canadian city, at $49.98 per square foot per year. This is up slightly from May, the last time the survey was done, when Vancouver ranked 57th at $49.46 per square foot.

The cost of doing business in Vancouver's suburbs, which includes areas within the city but outside the downtown core, rose at a higher rate. Vancouver suburbs ranked 99th on the list with a rental cost of $33.46 per square foot, up significantly from the May ranking of 119th and $28.86. (The numbers represent gross rents, and include net rents, taxes and operating costs.)

Chris Clibbon, senior research analyst at CB Richard Ellis's Vancouver office, said developments in the Broadway corridor and new office buildings opening in Vancouver's suburbs are the reasons for the spike.
"Rents on the Broadway corridor have increased quite a bit because the vacancy rate is even lower than downtown," said Clibbon, citing a 2.6-per-cent vacancy rate in the Broadway corridor, compared with Vancouver's record-low three-per-cent vacancy rate in the downtown core. "And in terms of new supply, there's nothing that will change the vacancy rate [in the Broadway corridor]."

Clibbon said that new office developments in Vancouver's outlying areas have raised the suburban costs, because new buildings generally have higher rents than older ones.

The most expensive place in the world to rent office space is the West End of London, England, at $326.67 psf, followed by Mumbai, India ($188.22), the City of London ($179.57) and Moscow ($179.55).

The most expensive Canadian city remains Calgary, ranked 34th in the world at $64 - virtually unchanged from May's 33rd ranking at $64.12 - followed by Toronto, 35th at $63.35. Other Canadian cities on the list of 170 are Edmonton (57th, $46), Ottawa (64th, $44.25), Calgary's suburbs (89th, $37.11), Montreal (94th, $35.84), Halifax (111th, $30.23), Toronto's suburbs (116th, $29.50), Montreal's suburbs (130th, $25.27), London, Ont. (135th, $24.53) and Waterloo (138th, $24.32).

Market Review

Home Prices Rise Modestly in Vancouver and Victoria.

Vancouver, BC – November 21, 2007.

British Columbia Real Estate Association (BCREA) reports residential sales volume on the Multiple Listing Service® (MLS®) in BC climbed 23.5 per cent to $3.40 billion in October, compared to the same month last year. Residential unit sales increased 12.8 per cent to 7,358 units during the same period. The average MLS® residential price hit $462,912, up 9.5 per cent from October 2006.

“While home sales continue at a brisk pace, prices in Vancouver and Victoria are climbing at a more moderate rate,” said Cameron Muir, BCREA Chief Economist. Compared to October 2006, the average sales price increased 7.8 per cent in both markets. Fraser Valley and Chilliwack prices climbed 6.2 and 6.3 per cent, respectively, during the same period. “Eroding affordability is providing less upward pressure on home prices in both Victoria and the Lower Mainland, as many first-time buyers no longer have the financial wherewithal to bid up prices,” added Muir.

In contrast to the South Coast’s major urban areas, home prices in the interior and northern markets continue a rapid ascent. “The Okanagan, Kamloops and Kootenay markets are benefiting from strong demand from retiree, investor and recreation buyers,” noted Muir. “Abundant natural amenities and relatively low prices are drawing considerable attention from empty nesters around the province and across the country.”

“Housing markets in the north that are receiving new investment in resource extraction and transportation are performing well,” added Muir. “However, sluggish US demand for softwood lumber is impacting housing demand in many communities.” The average sales price of a home in the BC Northern Real Estate Board area rose 11.3 per cent last month compared to October 2006. In the Northern Lights Real Estate Board area, the average home sales price climbed 18.5 per cent during the same period.

Construction Update

Major projects keep on growing, B.C.'s large construction plans increase for the 17th straight quarter.

Derrick Penner
Vancouver Sun
Wednesday, November 07, 2007

Builders and developers piled another $3.3 billion worth of planned large construction projects onto British Columbia's Major Projects Inventory between June and the end of September ballooning the list to $135.1 billion, the province said Tuesday.

There are now 843 projects on the list, which is compiled quarterly by the Ministry of Economic Development. Some 417 projects valued at $53.4 billion are already under construction. It is the 17th straight quarter the inventory has increased. The third-quarter list, for the three months ending Sept. 30, includes projects that have been announced but have since been put on hold, which stood at 33, the same number on hiatus at the end of the second quarter.
That compares with $40 billion worth of work underway from a list that totalled $109 billion at the same period a year ago.

Minister of Economic Development Colin Hansen said the inventory "is the best indicator of real, tangible [economic] activity for the years ahead." Hansen added that the size and time span of the inventory offers hope for the B.C. economy after the 2010 Olympics, although some economists predict a softening following the Games.
"Most of these projects take us well into the next decade," Hansen said.

Vancouver's Ritz Carlton Hotel and residential development on Georgia Street, at a $500 million value, was the biggest new project to start construction in the third quarter. Cloudworks Energy's $263-million run-of-river hydroelectric development is the next biggest piece of work to get underway.

Manley McLachlan, president of the B.C. Construction Association said the breadth of work available on the project list is comforting. The inventory isn't dominated by either residential building or industrial projects.
The fact it is growing, rather than shrinking "supports the observation that we've had for quite some time. To call this a boom now is almost a redundant comment."

However, while the inventory is evidence that high levels of construction are likely to continue for some time, which helps the skills-starved construction industry recruit new workers, its ballooning size provides its own problems.
"The real challenge though, is are we going to continue to be able to manage that growth over the long term," McLachlan said. "And I think the verdict is still out."

Some of the rising dollar value in the inventory list reflects the inflation in construction costs, McLachlan added, as high demand for buildings - and not jus in B.C. - drives up the prices for materials such as steel and concrete as well as labour. The fact that project developers continue to make plans for new buildings, McLachlan said, is hopeful evidence "that we haven't perhaps reached the breaking point where owners are saying 'this is way too much, we're going to delay our project until something changes.' "We haven't reached that point, and I don't know where that point is," although McLachlan said shortages of skilled workers have extended the schedules of some projects.

Hansen said he believes the growth in construction in B.C. is manageable. While construction costs are increasing, that growth hasn't had too deep an impact on B.C.'s overall inflation rate, which would be a bigger concern.
"Companies are reaching out and are finding workers," Hansen said, "and I see very few projects cancelled or delayed because of skill shortages."

The value of projects on hold dropped $1.9 billion in the third quarter to $9.6 billion.
The inventory compiles the list from public sources and tracks capital projects worth more than $20 million or more in the Lower Mainland south west region and $15 million or more elsewhere in the province.

PUTTIN' UP THE RITZ

At a projected cost of $500 million, the Ritz Carlton Hotel and Residential Development in downtown Vancouver is by far the largest project by dollar value started in B.C. in the July-September period. Here are the other new projects started that have costs estimated at $100 million or more:

Aquattro Residential Development, Vancouver Island: $350 million
NEPTUNE Canada Project, Vancouver Island: $300 million
Upper Harrison Hydroelectric Project: $263 million
Delsom Estates Residential Development, Delta: $250 million
Morgan Crossing Residential Village: $200 million
Canoe Mountain Resort Developments: $100 million
All other new projects: $370 million

Total $ value of all 18 new projects started in the July-September period: $2.333 billion

Source: B.C. Major Projects Inventory

Market Update

October housing sales consistent with record highs.

Vancouver, B.C. November 5, 2007.

The Real Estate Board of Greater Vancouver (REBGV) reports that total residential sales reached 3028 units in October 2007, an increase of 11.2 per cent compared to 2,722 sales in October 2006, and a 2.3 per cent decrease compared to the 3,099 units sold in October 2005.

Property listings remain relatively unchanged compared to last year’s levels, with 4,819 active listings at October month-end, compared to 4,862 last year.

“This is only the fourth time in 25 years that sales have surpassed the 3,000 mark in the month of October,” says REBGV president Brian Naphtali. “What we’re seeing is a buoyant market fueled by strong demand from both first-time and repeat buyers. “The economy is healthy,” Naphtali says. “There’s virtually no unemployment. Interest rates are steady. These are all factors affecting the continued strong demand for housing.”

According to Multiple Listings Service® (MLS®) data, sales of apartment properties increased by 17.4 per cent to 1,368 sales in October 2007 compared to 1,165 sales in October 2006. The benchmark price of an apartment property in Greater Vancouver, calculated by the MLSLink® Housing Price Index, is $371,418, up 11.4 per cent from one year ago.

Sales of attached properties increased by 11.7 per cent in October 2007 to 527 sales, compared to 472 sales in October 2006. The benchmark price of an attached unit is $454,645, up 10.8 per cent from a year ago. Sales of detached properties increased by 4.4 per cent in October 2007 to 1,133 sales, compared to 1,085 sales in October 2006. The benchmark price of a detached unit is $730,022, up 12.2 per cent from last year.

Bright spots in Greater Vancouver in October 2007 compared to October 2006:
DETACHED:
Burnaby up 14.5% .........................(95 units sold, up from 83)

Coquitlam up 31.9%....................... (124 units sold, up from 94)

Richmond up 20.4%....................... (136 units sold, up from 113)

Vancouver East up 11.6%................163 units sold, up from 146)

Vancouver West up 11.4% ............. (156 units sold, up from 140)

ATTACHED:

Burnaby up 24.1% ............................. (67 units sold, up from54)

Port Coquitlam up 62.5%.................... (26 units sold, up from 16)

Whistler/Pemberton up 100%.............. (22 units sold, up from 11)

APARTMENTS:
Burnaby up 25.4% ............................. (168 units sold, up from 134)

Coquitlam up 20.3%........................... (77 units sold, up from 64)

Maple Ridge/Pitt Meadows up 80% ..... (36 units sold, up from 20)

New Westminster up 21.1% ............... (92 units sold, up from 76)

Richmond up 47.1% .......................... (175 units sold, up from 119)
Vancouver West up 19.8%...................(479 units sold, up from 400)

Luxury Sales

Vancouver condo sells for record $18 million.

Bruce Constantineau
Vancouver Sun
Wednesday, October 24, 2007

An unnamed Portland, Ore. businessman has paid a record $18 million for a 48th-floor penthouse suite in downtown Vancouver.
The 7,400-square-foot unit in the Private Residences at Hotel Georgia won't be ready for occupancy until 2011, when the $400-million development near Georgia and Howe is completed.

Sotheby's International Realty Canada president Ross McCredie said the buyer wants to remain anonymous, but the Vancouver property will be one of several he owns throughout the world. "It's not the first time he's bought a penthouse suite in a big city," he said. McCredie said the unit will feature an "incredible" rooftop deck and custom finishings throughout the suite. Owners of the 155 condos in the development will also have access to services and amenities provided by a restored Hotel Georgia, including round-the-clock concierge and valet services.

McCredie said Vancouver billionaire Jim Pattison bought a unit in the project, as did former prime minister Kim Campbell. He wasn't certain what Pattison bought, but Campbell paid just under $2.5 million for a two-bedroom unit.

The $18-million price for the penthouse suite exceeds the amount paid recently for a 6,500-square-foot, two-level penthouse in the Fairmont Pacific Rim Vancouver. That unit is believed to have sold for well in excess of its $12-million asking price.

Potential buyers are mulling over a $17.6-million suite on the 60th floor of the Shangri-La development and an $18.2-million price tag for a 6,900-square-foot condo on the 26th floor of 1000 Beach Avenue. Three units on the 60th floor of the Ritz-Carlton project on Georgia Street have asking prices ranging from $10.8 million to $12.8 million while actor Jean-Claude Van Damme is believed to have listed his 7,500-square-foot suite on the 41st floor of the Shaw Tower for a whopping $19.8 million.

McCredie said more than half of the 155 units for sale in the Hotel Georgia project have been sold since sales began last Friday. More than $200 million in sales took place on opening day, with most being in the $2.5-million-to-$3-million range. "A lot of local buyers just gulp at those prices but international buyers are not as fazed," he said. "We constantly hear from international buyers that this price point is relatively cheap in their minds." McCredie plans to market more of the units next month during a sales trip to Abu Dhabi, Dubai and Moscow.

Vancouver condo marketer Bob Rennie said penthouse buyers constitute a market unto themselves. "They're high-net-worth individuals with a lot of discretionary money who want the absolute best," he said. "It's often a second, third or fourth residence for them."I know people hate these terms but as Vancouver becomes more of a world-class city and resort city, the take-up of these units is becoming stronger".

Market Review

BC Home Sales Increase in September.
Vancouver, BC – October 18, 2007.

British Columbia Real Estate Association (BCREA) reports residential sales volume on the Multiple Listing Service® (MLS®) in BC climbed 20 per cent to $3.42 billion in September, compared to the same month last year. Residential unit sales increased 6.8 per cent to 7,687 units during the same period. The average MLS® residential price reached $445,205, up 12.3 per cent from September 2006.

“Housing demand hasn’t let up after a record-breaking summer,” said Cameron Muir, BCREA Chief Economist. “While the number of homes for sale has increased since last year, the sales-to­active-listings ratio has remained unchanged. This means homebuyers are snapping up additional inventory at the same pace, and upward pressure on home prices is continuing.”

“Strong economic conditions are underpinning BC home sales,” noted Muir. “Robust job growth, low unemployment and rising wages and salaries are bolstering consumer demand.” More than 70,000 jobs have been created in the province over the last year, while the unemployment rate hovers near an historic low. The average weekly wage in BC climbed 3.3 per cent in September, compared to the same month last year.

Year to date, MLS® dollar volume increased 18 per cent to $36 billion compared to the same period last year. Residential sales rose 4.9 per cent to 82,627 units, while the average residential price climbed 12.5 per cent to $436,062.

Market Update

Slow and steady growth forecast for residential real estate Canadian home sales to top 500,000 in 2007.

Kelowna, BC (October 17, 2007)

After posting extraordinary gains in 2007, housing market performance will moderate in most major Canadian centres in 2008, according to a report released today by RE/MAX.

The RE/MAX Housing Market Outlook 2008 examined residential real estate trends in 18 markets across the country. The report found that while economic prospects will continue to improve next year, few major markets are expected to exceed record sales levels set in 2007. Winnipeg, Hamilton-Burlington, Kitchener-Waterloo, London-St. Thomas, Ottawa, Sudbury, Saint John, Halifax-Dartmouth, and St. John’s are all predicted to buck the trend in 2008, with appreciation ranging from one to seven per cent. Average price is forecast to increase in 78 per cent of markets surveyed next year, with the lowest price increase expected in Edmonton and the highest in St. John’s.

Nationally, the number of homes sold is expected to break through the half-million threshold in 2007, climbing 13 per cent to an estimated 545,400 units, up from 483,770 units one year ago. Average price is projected to appreciate nine per cent to $303,000, up about $25,000 over 2006 levels. In 2008, home sales are expected to retreat to 500,000 units while Canadian housing values are forecast to continue their ascent, rising six per cent to $321,000.

“Clearly, economic prosperity has translated into increased housing sales and upward pressure on prices across the board,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “The country’s economic engine fired on all cylinders throughout the year, despite dire conditions south of the border. As in 2007, inventory will be the major wildcard next year—the ultimate variable most expected to influence housing market conditions and performance. A return to tight market conditions could mean all bets are off as buyers are forced to compete, creating increased market pressure.” Major market frontrunners for price appreciation in 2008 include St. John’s (12 per cent), Regina and Kelowna – Central Okanagan (nine per cent), Hamilton-Burlington and Saint John (eight per cent) and Greater Vancouver (seven per cent). Leading the country in sales growth next year will be Kitchener-Waterloo (seven per cent), followed by Hamilton-Burlington, London-St. Thomas, Sudbury and Halifax-Dartmouth, each forecasting a five per cent gain. Higher mortgage rates and increased inventory levels failed to materialize in most major centres, making 2007 a record year for real estate activity in Canada.

By year-end, housing values across the country are expected to shatter existing records. Serious double-digit increases in average price are forecasted for Saskatoon (49), Edmonton (31.5), Regina (21), Calgary (20), Sudbury (20), Kelowna (19.5) Saint John (17), St. John’s (12), and Greater Vancouver (10). Saskatchewan dominated real estate news in 2007, reporting some of the highest percentage increases in unit sales. The number of homes sold in Regina by year-end is expected to top 35 per cent, bringing sales to an estimated 4,000 units. Neighbouring Saskatoon is forecast to climb 28 per cent to 4,400 units in 2007. Other centres expected to post double-digit gains in activity include Saint John (19 per cent) Kitchener-Waterloo (13 per cent), Halifax-Dartmouth (12 per cent), St. John’s (11 per cent), and Toronto (10 per cent).

“Western markets were first out of the gate in 2007, but those in the East followed suit,” says Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. “By year-end, some of the most impressive gains in home sales will be realized in Ontario and Atlantic Canada. Solid economic fundamentals, including billions of dollars in capital projects, a positive unemployment outlook, and solid consumer confidence levels will propel markets forward. A slow and steady growth trajectory, minus the peaks and valleys experienced in 2007, is forecast for next year.”

RE/MAX is Canada's leading real estate organization with over 17,500 sales associates situated throughout its more than 640 independently owned and operated offices across the country. The RE/MAX franchise network, now in its 34th year of consecutive growth, is a global real estate system operating in over 65 countries. More than 7,000 independently owned offices engage 120,000 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral and asset management. For more information, visit: www.remax.ca.

Luxury Sales

Demand for luxury homes through roof. 123 houses sell for more than $3 million in Vancouver area alone.

Frank Luba
The Province
Tuesday, October 16, 2007.

Sales of luxury homes in B.C. are hot.
So far this year 59 homes have sold for more than $3 million in West Vancouver, and 64 on Vancouver's west side. In all of 2006, just 50 sold for more than $3million in West Vancouver, and 64 on the west side.
There's more demand than supply, top-end realtor Allan Mark Angell, who usually has 35 to 50 luxury listings, said yesterday. "I have 17 to 18 right now," said Angell, who specializes in luxury sales in West Vancouver and the west side. "I'm knocking on doors to find expensive houses. "The reason it's kept going is lack of product. If you want oceanfront in close, good luck in trying to find one. After one that's $14.8 million, that's it."

B.C. leads Canada in asking prices, with 124 properties listed on MLS.ca at $5 million or more. Ontario has 45 properties at that level and Alberta 22.

Topping the list of B.C.'s most expensive homes is a $28.5-million waterfront home in the Uplands neighbourhood of Oak Bay. Others among Canada's top 10 include a $25-million Shaughnessy estate in Vancouver; an oceanfront home in Metchosin for $24 million; two Whistler homes valued at $22 million and $20 million; and one in Saanich at $18.5 million.

Angell said he knows a property in West Vancouver that closed in March for $5.3 million. Two months later he brought the owner an offer for $7.2 million that he rejected.

In Whistler, Ann Chiasson of Sea to Sky Premier Properties said: "The big picture on the luxury market is it's good."
Angell, a realtor when prices crashed in 1981, saw lots of product and interest rates at 18 per cent.
"Now our rates are still good and we don't have a big increase in product," he said. "So what's going to change the market?

"I don't see anything on the horizon that's going to change it. Yet everybody is saying it's about to."
Senior market analyst Robyn Adamache of the Canadian Housing and Mortgage Corp. said population growth and jobs are driving B.C.'s strong housing market. "We're still seeing very high demand for housing and that's being fuelled mainly by strong levels of migration coming into the region, as well as a vibrant economy that's creating a lot of jobs," said Adamache.

Disclosure ordered for 'pre-sale' developers.

Disclosure ordered for 'pre-sale' developers. Rules call for buyers to get more information on agreement provisions.

Bruce Constantineau
Vancouver Sun

The B.C. Financial Institutions Commission has ordered developers to provide increased disclosure to buyers of "pre-sale" condominiums which have yet to be built.

The new measures, to take effect Nov. 1, follow the controversial cancelling of 32 pre-sale contracts this year on the Riverbend project in Coquitlam. The developer - CB Development 2000 Ltd. - claimed rising construction costs outstripped sale prices and would have forced massive losses if the sales were completed. The disclosure rules force developers to explain any provisions for terminating, extending or assigning purchase agreements. Buyers will be required to initial the cover page of disclosure statements to confirm the provisions were drawn to their attention.

Pertinent information must also appear in "conspicuous type" on the statement's cover page.

THE RULES ALSO PROVIDE FOR MORE DISCLOSURE OF DEVELOPERS' BACKGROUND, INCLUDING:
- Their experience in the development industry.
- Whether they have been bankrupt in the past five years or been disciplined in the past 10 years for matters relating
to real estate, mortgages of land, securities, theft or fraud.
- Whether any conflict of interest exists that could affect a buyer's purchase decision.

Failure to comply with the disclosure requirements could result in the issuance of cease-marketing orders or "administrative penalties" of up to $50,000.

Greater Vancouver Home Builders chief executive officer Peter Simpson welcomes the new disclosure rules.
"If there's something in a developer's background -- like he went bankrupt or committed fraud in the past - what's wrong with making that public?" he said in an interview. "It just makes more information available to home buyers so they can make an informed decision ... . It's important they know there's a slight potential for something to go wrong."
But Simpson said home buyers also have to take responsibility for their own actions, noting many buyers never even read the details of long purchase contracts. He said condo buyers in lineups often get caught up in the excitement of the moment and can feel pressured to buy on the spot. "Once that excitement and emotion passes, you need to step back and take that purchase contract to a lawyer to have them review it," Simpson said. "If there's anything that appears to be problematic, you can deal with it or just walk away from the contract if you're not satisfied."

Home buyers in B.C. have a seven-day right of recision, which allows them to rescind a purchase agreement for any reason within seven days. Vancouver lawyer Brian MacKay said giving buyers more information about pre-sale projects is probably the best solution available now. "Inexperienced developers will have more trouble selling to knowledgeable purchasers because they'll be wary of prices that seem too low or too good a deal," said MacKay, with Davis LLP. "Purchasers will know there's a substantial risk in today's climate that the product might not be delivered."

Market Review

Housing Starts Move Higher in September.

OTTAWA, October 9, 2007 — The seasonally adjusted annual rate1 of housing starts was 278,200 units in September, up 19.6 per cent from 232,700 units in August, according to Canada Mortgage and Housing Corporation (CMHC).

“The rise in September housing starts reflects a strong multiple starts segment,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “In particular, the robust results achieved this month can be mostly attributed to increased condominium starts, which reflect strong condo sales over the past 12 to 24 months. Despite this sizeable growth in September, we continue to expect that housing starts will decrease gradually between now and the end of 2008.”

The seasonally adjusted annual rate of urban starts increased 22.9 per cent to 244,400 in September, compared to August. Urban singles were down 4.3 per cent to 90,300 units in September, while multiple starts increased 47.5 per cent to 154,100 units.

In September, the seasonally adjusted annual rate of urban starts increased in all five regions. Urban starts registered an increase of 3.0 per cent in the Atlantic region, 46.0 per cent in Quebec, 23.6 per cent in Ontario, 11.1 per cent in the Prairies, and 15.8 per cent in British Columbia. Urban single starts were down in all regions except Quebec, where single starts were unchanged at 16,400 units. All regions saw double-digit increases in urban multiple starts with Quebec leading the way with a 75.2 per cent increase.

Rural starts were estimated at a seasonally adjusted annual rate of 33,800 units in September.
Actual starts, in rural and urban areas combined, were up an estimated 0.2 per cent in the first nine months of 2007 compared to the same period in 2006. In urban areas, actual total starts grew by an estimated 1.2 per cent year-to-date. Single starts growth was -4.7 per cent while multiple starts grew by approximately 7.0 per cent.

1 All starts figures in this release, other than actual starts, are seasonally adjusted annual rates (SAAR) — that is, monthly figures adjusted to remove normal seasonal variation and multiplied by 12 to reflect annual levels.

As Canada’s national housing agency, Canada Mortgage and Housing Corporation (CMHC) draws on over 60 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable homes — homes that will continue to create vibrant and healthy communities and cities across the country.

Commercial Real Estate

Korean developer adds to Infinity.
Two new Sky Towers will go up across the street from highrise Surrey condos.

By Michael Kane
Vancouver Sun
Thursday, October 04, 2007

Surrey's Central City area will get the two tallest towers between Vancouver and Calgary under plans unveiled Thursday by a Korean businessman.

The 36-storey and 40-storey residential Sky Towers will be directly across the street from the five Infinity highrises being built at the King George SkyTrain station in the formerly run-down Whalley neighbourhood.
With the first Infinity tower ready for occupancy in January, and four more towers on the way, the addition of the Sky Towers enhances the city's goal of turning Central City into Surrey's downtown community, Mayor Dianne Watts said in an interview.

"This really fits into our vision for our city centre," Watts said. "The seven towers here are going to be just the cornerstone for the whole entrance into city centre." She said applications are being processed for several more towers, both residential and commercial, over the next five years.

Hee Yong 'Edmond' Yang, who operates a 2,000-outlet fried chicken franchise in South Korea, took over the Infinity project after the previous developer, also Korean, faltered under a heavy debt load.
Designed by Patrick Cotter Architects, Sky Towers will contain 900 one and two-bedroom suites, as well as 56 townhouses, with studios starting at $179,900.Each tower will include a 1,000-square-foot rooftop solarium with 50-foot glass atriums, along with a 4,000 square foot rooftop patio offering unrestricted views.

The 36-storey Sky Tower is scheduled for completion in 2010, followed by the 40-storey tower.

"With Sky Towers and the Infinity project, we're looking to build a dense urban mecca," said Cameron McNeill of MAC Real Estate Marketing Solutions. At its heart is the Surrey campus of Simon Fraser University, along with shops, restaurants, and recreational facilities, all within walking distance of SkyTrain."If we look ahead five or 10 years, Central City is going to be one of the most significant urban centres in Western Canada," McNeill said in an interview.

"Surrey is one of Canada's fastest growing cities and this is their downtown core." Unlike Burnaby's Metrotown, which he likened to a mall surrounded by residential highrises, McNeill said Central City will become "a fully-integrated urban centre in a most modern sense, a mini downtown Vancouver." With 150 homes priced at less than $250,000 - almost half the cost of similar units in Vancouver - he said it will also be highly affordable.

By "trying to deliver high-quality residences at affordable prices," Yang, 46, is living up to the three principles that have governed his life, said his spokesperson, lawyer Byron Lee. "First of all you have to be a good person with a good heart. Secondly, whatever you do, you should try to do things righteously and honestly. Thirdly, you shouldn't be in business only to make money but you should aim at benefitting others."

Lee said Yang, who immigrated to Canada with his wife and three children in 2002, is looking for opportunities to build additional homes in the area."He thinks Central City will become a vibrant downtown community. It's very livable with a lot of amenities."

Market Update

Buyers fuel continued growth in Greater Vancouver housing market.

Vancouver, B.C. October 2, 2007 – The Real Estate Board of Greater Vancouver (REBGV) reports that total residential sales of detached, attached and apartment properties reached 2,776 units in September 2007, an increase of 10.2 per cent compared to 2,519 sales in September 2006.

The inventory of residential properties listed for sale remains stable, with an overall year-to-date increase of 4.1 per cent to 45,054 residential units listed between January and September 2007, from 43,264 for the same period in 2006. The number of new listings increased 8.2 per cent to 4770 in September from 4408 in August of this year.

“There is no single demographic of buyers. They include first-time buyers, people choosing to take advantage of current home equity to ‘move up’ in the market, as well as people coming into Greater Vancouver from other areas. Our data indicates that the majority are purchasing a principal residence,” says REBGV president Brian Naphtali.
“There’s a great deal of choice in the market for a range of consumers today,” explains Naphtali. “While 45 per cent of homes for sale are priced at below $500,000, there are also a significant number - 37 per cent - listed in the $500,000 to $1-million range. Of the active listing inventory of more than 11,000 residential properties, approximately 18 per cent are priced above $1-million.”

According to Multiple Listings Service® (MLS®) data, sales of apartment properties increased by 7.7 per cent to 1,177 sales in September 2007 compared to 1,093 sales in September 2006. The benchmark price of an apartment property in Greater Vancouver, calculated by the MLSLink® Housing Price Index, is $371,718 up 11.1 per cent from one year ago.

Sales of attached properties increased by 27.6 per cent in September 2007 to 500 sales, compared to 392 sales in September 2006. The benchmark price of an attached unit is $452,944, up 10 per cent from a year ago.
Sales of detached properties increased by 6.3 per cent in September 2007 to 1,099 sales, compared to 1,034 sales in September 2006. The benchmark price of a detached unit is $737,927 up 11.9 per cent from last year.

Bright spots in Greater Vancouver in September 2007 compared to September 2006:

DETACHED:
Maple Ridge/Pitt Meadows up 11.8% .......(133 units sold, up from 119)
Richmond up 29% ..................................(147 units sold, up from 114)
Vancouver East up 22.9%........................(172 units sold, up from 140)

New Westminster up 38.1%.....................(29 units sold, up from 21)

ATTACHED:
Burnaby up 38% .........................................(69 units sold, up from 50)
Port Moody/Belcarra up 142.9%....................(34 units sold, up from 14)
Richmond up 38.6% ....................................(115 units sold, up from 83)
Vancouver West up 70.7%............................(70 units sold, up from 41)

APARTMENTS:
New Westminster up 17.4% .........................(81 units sold, up from 69)
Port Moody/Belcarra up 39.1%......................(32 units sold, up from 23)
Whistler/Pemberton up 188.9%.....................(26 units sold, up from 9)

BC Home Sales to Surpass 100,000.

BCREA Fall Housing Forecast.

Vancouver, BC – September 27, 2007.

The British Columbia Real Estate Association (BCREA) released its fall 2007 Housing Forecast today.

BC Multiple Listing Service® (MLS®) home sales are forecast to break the 100,000 unit mark for only the second time in history. BCREA forecasts that BC MLS® residential sales will hit 101,000 units this year, up 4 per cent from 2006. The highest number of MLS® sales in the province was recorded in 2005, when a total of 106,310 homes were sold. The ten-year average is just under 78,000 units.

“Exceptionally strong consumer demand over the summer months has changed the outlook for this year from declining home sales to the second highest on record,” said Cameron Muir, Chief Economist. “While eroding affordability is squeezing some potential buyers out of the market, the housing stock is increasingly diverse, providing a mix of home types that appeal to a wide consumer market.”

BC home prices are also on the rise. The average MLS® residential price is forecast to climb 12 per cent to $437,000 this year. “While home prices continue to face upward pressure, the rate of growth is expected to moderate,” added Muir. The BC average MLS® price increased 18 per cent last year, and is forecast to rise at a more modest 8 per cent in 2008.

BC housing starts are forecast to decline 7 per cent to 33,900 units in this year and a further 4 per cent to 33,000 units in 2008. While single detached housing starts are trending down, multiple housing starts are holding firm at 21,000 units this year. Multiple housing starts now comprise 62 per cent of all new residential construction activity in the province.

The BCREA Housing Forecast is a semi-annual publication produced in the spring and fall of each year. The report contains forecasts and analysis of the BC economy and housing markets, including detailed forecasts by home type of the province’s 12 real estate board areas.

Commercial Real Estate

'Manhattaning' Vancouver
Ritz-Carlton brings its luxury brand to world-class city.

Ashley Ford
The Province
Tuesday, September 25, 2007

Photo illustration offers a look at the Vancouver skyline of 2011, one that includes the 60-storey Vancouver Turn at 1153 W. Georgia St.

You could call it the "Manhattaning" of West Georgia Street.
Construction has begun on the 60-storey Vancouver Turn, which includes the Ritz-Carlton Hotel and private residences in the same tower at 1153 West Georgia St.

Within spitting distance, the city's tallest-tower-to-be, the Living Shangri-La, now halfway on its way to 62 storeys, giving downtown Vancouver a bit of a New York look that few would have predicted several years ago.
The two spectacular buildings will dominate the city skyline. Pedestrians are already craning their necks as they walk by and gawk at the Shangri-La. They could get whiplash when The Residences is completed in 2011.

Marketing both projects is Bob Rennie, of Rennie Marketing Systems, who says the towers are architectural signatures that will emphasize Vancouver's arrival as a world-class city. "When you attract two international luxury brands like this, you realize the city, our little baby, has finally grown up," he said. "Luxury brands are always in limited supply and there may be few other opportunities for projects like these in the central business district in the future."

The city is already in a protective stance to keep more office space downtown.
The Ritz-Carlton, an icon in the global luxury hotel world, is being developed by Holborn Developments, a private Vancouver-based company. Ritz-Carlton's operating creed is that it will provide any service for its clients, as long as it is legal, moral and ethical. The project will fill in the last blighted spot along West Georgia. The shell of a previous building that stood empty for years has been demolished.

The 180-metre twisting glass tower atop a glass podium will feature 123 luxurious private residents on floors 27 to 60 with the hotel taking up 130 rooms on the lower floors. The tower has been designed by Arthur Erickson in collaboration with Musson Cattell Mackey Partnership and DYSarchitecture.

The majority of residences are roomy, ranging from 926 square feet up to 4,145 square feet for a penthouse and carry equally impressive price tags starting at $1.4 million up to $12.8 million. Rennie said there is already considerable interest from potential buyers. "We are getting attention from owners of significant properties in Vancouver who value service that goes along with the Ritz-Carlton brand," he said.

"When you are building a quality project such as this you have to think three years ahead of where design and function will be when it is completed in 2011. "For instance, the developers flew me to New York just to look at various kitchen designs," Rennie said. "That is the sort of stringent planning and design that is going into this building."

Market Update

Home Sales Continue at Torrid Pace

September 18, 2007.

The British Columbia Real Estate Association (BCREA) reports residential sales volume on the Multiple Listing Service® (MLS®) in BC climbed 25.9 per cent to $4.33 billion in August, compared to the same month last year. Residential unit sales increased 12.6 per cent to 9,833 units during the same period. The average MLS® residential price hit $439,931, up 11.8 per cent from August 2006.

BC home sales rebounded over the summer months, climbing 14 per cent June through August, compared to the same period last year. Year to date, BC home sales are up 4.7 per cent to 74,939 units.

“Despite eroding affordability, home sales are on a near record pace,” said Cameron Muir, BCREA Chief Economist. “Preferred retirement locations, such as Vancouver Island, the Okanagan and Kootenays, have experienced the largest increases in home sales this year.” Muir noted that, while home sales are up, the average home price across the province is climbing at a year-over-year rate of 12 per cent, down from a high of 21 per cent in June 2006.

“Barring any unforeseen shock in the market, such as rapidly rising interest rates or a meltdown of the BC economy, less upward pressure on home prices is expected over the next 24 months,” added Muir.

Office Update

Core office space is at record premium.
At 3%, downtown Vancouver has tighter market than booming Calgary.

Derrick Penner
Vancouver Sun; with a file from CanWest News Service
Wednesday, September 19, 2007

Vancouver's downtown office vacancy rate shrunk to a new low of three per cent, inching past Calgary as the tightest central office market in the country, according to commercial realtor CB Richard Ellis.
Only 645,008 square feet of Vancouver's 21.6 million square feet of offices downtown sit vacant, according to CB Richard Ellis' third-quarter report.

CB Richard Ellis analyst Chris Clibbon added that downtown's vacancy "is probably one of the lowest in North America," when it comes to downtown office availability.
Clibbon added that the opening of the 11-storey, 238,000-square-foot expansion of the Bentall Five building on Burrard Street will create some flex in the market.
"There are tenants giving back some large chunks of space," he said.

"Some will be moving into Bentall Five . . . and there will be some tenant shifts creating some options here and there, but nothing substantial."
Jeffrey Rank, managing director of commercial realtor Cushman & Wakefield LePage, said the subleasing market has provided some relief for the downtown market, providing room for tenants as companies change locations.

Catalyst Paper Corp.'s planned move from the PricewaterhouseCoopers building at 250 Howe St. to a suburban headquarters that will empty three floors in the downtown building is one example of office space opening up.
However, that space in the PricewaterhouseCoopers building was almost immediately leased by existing tenants in the building.
"In some markets, one of which I think we're in right now, looking at purely the percentage numbers doesn't always tell you the whole story," Rank said.
"Still, we're in a tight market. There's no question [about that]."

Cushman & Wakefield's assessment of downtown's vacancy is slightly higher than its competitor at 3.9 per cent.
Clibbon said Catalyst's decision to move out of downtown is indicative of another trend market analysts expect to see as vacancy remains tight.

Suburban office vacancy, according to CB Richard Ellis, was 10.9 per cent across all markets, although the total office space in the remainder of Metro Vancouver is only 17.3 million square feet. By community, vacancy ranged from 8.1 per cent in Burnaby to 22.4 per cent in Surrey.
Meanwhile, half of all new office buildings -- some five-million square feet -- being built in Canada are going up in Calgary, which will dramatically change its vacancy picture. That city's vacancy rate crept up to 3.1 per cent in the third quarter compared with 2.8 per cent in the second quarter.

Nationally, the vacancy rate for Class A space in the third quarter dipped to an "extremely low" 4.7 per cent, with rents climbing to an average $21.99 per square foot compared with $20.84 a quarter ago, according to CB Richard Ellis.
Montreal was the only market with falling prices. Asking rents dropped to $18.09 per square foot per year from $18.83.
"Even with the addition of a sizable amount of new Class A office space, the Calgary market will still be relatively tight market for some tenants because much of the new space coming to the market has already been leased," said CB Richard Ellis president Blake Hutcheson.

OFFICE SPACE SQUEEZE

Surrey looks like the best bet for finding office space in the Lower Mainland, according to CB Richard Ellis.

Office vacancy rates, Q3
Broadway corridor: 2.6%
Downtown Vancouver: 3.0%
North Shore: 5.0%
Burnaby: 8.1%
Richmond: 13.7%
New Westminster: 20.0%
Surrey: 22.4%
Total: 6.4%

Source: CB Richard Ellis

The RE/MAX Quest for Excellance Awards

RE/MAX 2008 “Quest For Excellence” Bursary Program.

RE/MAX is pleased to offer Grade 12 students the opportunity to earn a $500 bursary to be used towards further education.

Starting September 17th, 2007 and running through until March 7th, 2008, Grade 12 students in Western Canada can apply for one of twenty-four $500 bursaries to be presented at their awards ceremonies. In order to qualify, the student must demonstrate their passion and dedication by writing a short essay on one of the following chosen topics.

Leadership
Sports
Performing Arts
Technology or Trades
Fine Arts
Community/Volunteer Service

Click here for further information on the program: 2008 Quest Information

Submission Instructions
Complete the on-line application form. Click on link to enter now.Deadline for entry is March 7th, 2008. A maximum of one on-line essay per student. 2008 Application Form

We are proud to note past recipients of the Quest for Excellence Awards:
2007 winners· 2006 winners· 2005 winners

If you have any questions regarding this program, please email Marie Sheppy, msheppy@remax.net at RE/MAX of Western Canada.

Market Review

August housing market continues brisk summer sales trend.

Vancouver, B.C. September 5, 2007.

The Real Estate Board of Greater Vancouver (REBGV) reports that total residential sales reached 3,384 units in August 2007, a 12.9 per cent increase when compared to 2,998 sales in August 2006 and a decrease of 7.3 per cent when compared to 3,649 sales in August 2005.

During this period, new listings for detached, attached and apartment properties tightened, decreasing by 2.0 per cent to 4,408 units compared to the 4,500 units listed in August 2006. The total number of active listings remained virtually unchanged at 10,721 units when compared to August 2006’s 10,635 units.

“Greater Vancouver’s residential housing market remained brisk this August, with consumer demand continuing to outpace supply, as it has done for much of the year,” says REBGV president Brian Naphtali. “We’ve seen sales near record levels for three consecutive months, despite the summer traditionally being a slower time for real estate in Greater Vancouver. “Although the average number of days a property stayed on the market increased to 41 days from 38 days in July, this slowdown clearly didn’t impact consumer demand,” explains Naphtali. “Burnaby, Richmond, Squamish, Vancouver East and Vancouver West all experienced healthy sales gains in the detached and apartment property categories. REALTORS® are still reporting multiple offer competition, so make sure to contact an agent in your area to find out how this could affect the purchase or sale of your home.”

According to Multiple Listings Service® (MLS®) data, sales of apartment properties increased by 16.1 per cent to 1,504 sales in August 2007 compared to 1,295 sales in August 2006. The benchmark price of an apartment property in Greater Vancouver, calculated by the MLSLink® Housing Price Index, is $367,944, up 11.0 per cent from one year ago.

Sales of attached properties increased by 10.4 per cent in August 2007 to 592 sales, compared to 536 sales in August 2006. The benchmark price of an attached unit is $446,577, up 9.8 per cent from a year ago.

Sales of detached properties increased by 10.4 per cent in August 2007 to 1,288 sales, compared to 1,167 sales in August 2006. The benchmark price of a detached unit is $726,067, up 11.1 per cent from last year.

Bright spots in Greater Vancouver in August 2007 compared to August 2006:

DETACHED:
Richmond up 24.5% ...................... (173 units sold, up from 139)
Vancouver West up 32.8%............. (158 units sold, up from 119)
Vancouver East up 18.8%.............. (164 units sold, up from 138)
New Westminster up 37.5% ............. (29 units sold, up from 11)
Squamish up 93.3%........................... (29 units sold, up from 15)
Burnaby up 25.5% .............................123 units sold, up from 98)

ATTACHED:
Port Moody/Belcarra up 44.4%............39 units sold, up from 27)
Burnaby up 22.4% ............................. (93 units sold, up from 76)
Vancouver West up 15.5%................. (67 units sold, up from 58)

APARTMENTS:
Port Moody/Belcarra up 37.5%.......... (33 units sold, up from 24)
New Wesminster up 68.2%.............. (111 units sold, up from 66)
Port Coquitlam up 80.0% ................. (54 units sold, up from 30)
Burnaby up 13.4% ........................ (186 units sold, up from 164)
Richmond up 32.7%...................... (195 units sold, up from 147)

Luxury Sales

Luxury sales experience serious upward momentum in major Canadian markets, says RE/MAX

Kelowna, BC (September 5, 2007)

Consistent return on investment has prompted an unprecedented upswing in luxury home sales in major Canadian centres so far this year, according to a report released by RE/MAX.The RE/MAX Upper-End Market Trends Report examined trends and activity in 16 markets across the country between January and July 2007. Luxury home sales were up over the same period one-year ago in all markets, with percentage increases ranging from 13 per cent in Victoria to 521 per cent in Edmonton. Four markets, including Edmonton, Regina, Saskatoon and Ottawa, reported triple-digit increases while double-digit gains characterized remaining markets. The report also found that the upper-end price points were under stress in most markets surveyed.

"Strong economic performance, especially in Western Canadian provinces, has bolstered consumer confidence levels to such a degree that purchasers in the upper-end are comfortable with a million dollar plus investment in real estate," says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. "Recent volatility in the stock market may trigger further investment in real estate as purchasers move to reallocate their holdings."

Solid gains in housing values - especially in the top-end of the market - have garnered much attention. The steady upward trending has attracted a growing number of affluent purchasers who are taking advantage of both the increased equity and the capital gains exemption for a principle residence.

"The consumer appetite for luxury property has been insatiable," says Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. "Unabated demand throughout the year has created tight market conditions in a number of blue chip neighbourhoods. Limited availability of product has, in turn, placed mounting pressure on housing values. As a result, the million dollar home no longer holds the same cache it once did and in larger markets such as Vancouver, Calgary, and Toronto, it´s simply a starting price."

Out-of-province and international purchasers are active in most markets surveyed, but locals still account for the majority of upper-end sales. Benchmark sales, including one home priced at close to $16 million in Toronto, are occurring with greater frequency and overall, there are more sales taking place in the very upper reaches of the marketplace this year. In smaller centres, benchmarks have been set throughout the year and although some, such as Regina, have yet to report a $1 million sale, the day is nearing.

Upscale condominium sales are also climbing as empty-nesters and retirees up the ante for these types of property. The most expensive sale to date occurred in Vancouver at close to $5 million, while the priciest listing carries a price tag of $18.2 million in the same centre.

"It appears that a growing percentage of the population has that kind of money to spend," says Polzler. "Growth in market capitalization has generated tremendous wealth in recent years - in fact, both the Dow Jones and S&P 500 reported double-digit growth in 2006. Demand for luxury goods overall - upscale homes, fine art, collectable cars -- is outpacing demand for everyday consumables. Inheritance has played a significant role as well, with the download on an estimated $1 trillion amount already underway."

"When it comes to shelter, these upscale purchasers clearly want it all," says Ash. "Price is really no obstacle when it comes to creating a legacy."

RE/MAX is Canada´s leading real estate organization with over 17,500 sales associates situated throughout its more than 640 independently owned and operated offices across the country. The RE/MAX franchise network, now in its 34th year of consecutive growth, is a global real estate system operating in over 65 countries. More than 7,000 independently owned offices engage 120,000 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral, relocation and asset management. For more information, visit: www.remax.ca.

Market Update

MLS® home sales activity forecast revised upward.
National activity to rise 8.1% over last year.

OTTAWA - August 20, 2007

Fueled by record activity levels in the first half of the year, national MLS® home sales activity is expected to reach record levels again in 2007, according to a new residential forecast prepared by The Canadian Real Estate Association.

National home sales are forecast to rise by 8.1 per cent to 523,100 units in 2007, and will set new annual records in most provinces. Activity is forecast to edge slightly lower in 2008, but will reach the second highest annual level on record in almost all provinces. Prices are forecast to set new records in every province this year and in 2008, but price increases will be smaller next year.

Resale housing markets will continue to become more balanced in British Columbia and Alberta. Even so, markets will remain tightest in the Western provinces where annual price increases will be greatest. In other provinces, the resale housing market is forecast to be tighter in 2007 than it was last year, but it will become more balanced as housing prices increase and higher interest rates further impact affordability.

The MLS® residential average price is forecast to set new records over the next two years in all provinces. Price increases are forecast to become smaller as the resale housing market becomes more balanced in 2008.
Resale housing activity is projected to ease gradually in all provinces. New listings are forecast to rise further in all provinces except Alberta, where they are projected to retreat after spiking in the second quarter.

“Resale housing activity was a juggernaut in the second quarter of 2007,” said CREA Chief Economist Gregory Klump. “Record breaking sales activity in the first and second quarters forced The Canadian Real Estate Association to revise its forecast upward.”

“Home buying sentiment remains upbeat in all regions and mortgage financing is still within reach for many potential home buyers,” Klump said. “The resale housing market will become more balanced as rising prices and higher mortgage interest rates gradually impact affordability. Strong employment numbers will keep sales activity strong, even as prices and interest rates continue to rise.”

“Consumers continue to have strong confidence in Canada’s resale housing market, and activity is on track to set a new annual record in 2007,” said Ann Bosley, President of The Canadian Real Estate Association. Bosley notes the Canadian market has shrugged off the subprime problems that have been affecting the housing market in the United States, and a number of investment funds. According to CREA’s forecast, the resale housing market will become more balanced next year, but negotiations will continue favoring the seller in most provinces.

“For local market expertise and sound advice, consumers should consult their REALTOR®,” added Bosley.

Commercial Real Estate

New office tower to adjoin
GM Place.

Bruce Constantineau
Vancouver Sun
Saturday, August 18, 2007

GM Place owners plan to build a 22-storey office tower that will connect to the arena's northwest corner, Vancouver Arena Limited Partnership announced Friday. A formal application has been submitted to the City of Vancouver for permission to build a 312,000-square-foot building designed by architect Peter Busby.

Busby said the building will become a signature Vancouver office tower because of its design and plans to make it among the most energy-efficient commercial buildings in North America. Sustainable features will include using "energy synergies" between GM Place and the connecting office tower. Heating and cooling systems between the two buildings will work together so waste heat from one building will be used to heat the other.

Part of GM Place's underground parking, which is used mostly at night, will be used for the new office tower.
Vancouver Canucks chief executive officer Chris Zimmerman, who was uncertain about the project's cost and potential opening date, said the new building will enhance the fan experience by providing new amenities like restaurants and retail shops. He noted office tower tenants will be able to walk from their lobby straight onto the concourse level of GM Place for hockey games or concerts."We always want to have more concourse space because it gives us the opportunity to create more food and beverage options," Zimmerman said in an interview. "It will allow for better flow throughout the arena."

He expects the new tower will attract a lot of potential new tenants who will enjoy the unique opportunity to be directly linked with an NHL venue. "In a highly competitive job market, I think it gives the primary tenants some wonderful recruiting tools," Zimmerman said. "We'll be able to provide some unique benefits around utilization of the building, the ice surface and probably some inside access to certain team events. It will be a great way for companies to differentiate themselves."

He said the current high demand for Vancouver office space makes it an ideal time to build the new tower. The downtown Vancouver office space vacancy rate is currently at an all-time low of 3.5 per cent, according to CB Richard Ellis Ltd.