CPABC Industry Update Summer 2015 - BC Real Estate Industry | Page 3
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Where We Live and Work – The Real Estate
and Development Industry in British Columbia
S U M M E R
A key driver of the BC economy, the real estate and development industry
has fuelled growth in our province for many years. The price of residential
real estate, the rise in popularity of mixed-use developments, and the evershrinking size of condominiums are hot topics with British Columbians.
2 0 1 5
BC is one of the hottest real estate markets in Canada, with $48 billion
invested in residential real estate in the province in 2014. Over 153,500
British Columbians work in the finance, insurance, real estate, and leasing
industry, representing 25% of BC’s total GDP. According to the BC Real
Estate Association, housing demand for 2015 is expected to produce the
highest level of unit sales since 2007. The non-residential construction
sector is also strong, as 3.2 million square feet of office space in Metro
Vancouver is expected to become available in 2015-2016.
The Chartered Professional Accountants of British
Columbia was formed through the amalgamation
of ICABC, CGA-BC, and CMABC. CPABC was
officially established when the CPA Act came into
effect on June 24, 2015.
In this issue, CPABC Industry Update profiles the real estate industry’s
contributions to the BC economy, how the commercial real estate industry
is undergoing a digital disruption, the impact of foreign buyers on the
3
HOUSING DEMAND
residential real estate market, and a Q&A with members working in the
About
real estate industry.
CPABC
Industry
Update
is the organization’s
Nine of BC’s 11 real estate
Housing
demand
for 2015
onlineismagazine
members working in industry.
expectedfor
to produce
Published
quarterly,
Industry
Update is distributed
the highest
level
of
tounit
over
36,000
candidates, and
sales
sincemembers,
2007.
students in British Columbia. Opinions expressed
are
necessarily
BC not
Multiple
Listingendorsed
Service by CPABC.
Copyright CPABC Industry Update 2015.
(MLS) residential sales
are forecast Contact
to rise 12% us
toVisit
94,300
units in
us online
at 2015.
bccpa.ca, or email
[email protected]. Editorial inquiries can be sent to
Tiana Mah at [email protected].
board areas are forecast to
Also included experience
in this issue
is a list housing
of professional development courses
increased
in 2015.
being offereddemand
this fall.
Those members working in real estate and
development •won’t
want to
miss our
ASPE accounting seminars for the
Vancouver
& Fraser
Valley
are forecasted
to lead the
real estate and construction
industry.
province with a 16% to 17%
increase
in residential
sales. Update, and we look forward
We hope you enjoy
this edition
of Industry
Drivers of housing demand:
to your feedback.
In this Issue
economic growth
consumer confidence
low mortgage interest rates
Real
7 Urban Commercial
Development in Vancouver:
The Rise of Vancouverism
Look for this icon throughout Industry Update
Click to return to In this Issue (page 3)
Estate
Outlook
in every issue
8 Designing New Neighbourhoods
The non-residential
construction sector
10 Digital Disruption
in Commercial
4 Industry Snapshot:
Real Estate
Real Estateis strong in BC, as work continues on
3.2 million sq. ft. of office space in
Metro Vancouver. This space is
Building BC:
Member Q&A on
expected to become available
BC’s Real Estate
Industry
throughout
2015-2016.
16
14 PD Opportunities
18 CPABC Career Connect Profile:
23 Connect with
Investment in Non-Residential Building
Ledcor
CPABC Online
Construction in BC (Q2 2015):
20 Market Implications of Foreign
0.3%
Spending is up: +4.5%
+1.0%
Investment is up
Buyers
institutional
buildings
industrial
sector
Source: BC Stats, non-residential building investments, July 28, 2015
20
Office Market Outlook by Canada’s
Major Markets (Q1 2015)
Indicator
Vancouver
Calgary
Toronto
Vacancy downtown
7.2%
10.7%
2.7%
Vacancy suburbs
11.5%
10.4%
9.1%
Net rent downtown
$27.31
$28.00
$28.55
Net rent suburbs
$19.21
$23.00
$14.88
Source: Colliers Q1 2015 Office Market Outlook report
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WorkBC industry profile: finance, insurance, real estate and leasing, workbc.ca
BCREA Housing Market Update (July 2015)
BCREA Housing Forecast, second quarter – June 2015
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SUMMER 2015
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