CPABC Industry Update Summer 2015 - BC Real Estate Industry | Page 6

The new normal

EMERGING TRENDS
IN REAL ESTATE

2015

URBANIZATION

Driven by work and lifestyle choices,
people are flooding into city centres
and adapting to less space.

Beyond the cubicle In a bid to attract and retain the best talent, employers

OFFICE SPACE

are seeking workspaces outfitted with the newest
technology and the most attractive amenities.

Mixing it up

As people return to the city, mixed-use properties
are becoming increasingly common.

RETAIL

Seeing the gold in the grey

SHIFTING DEMOGRAPHICS
The West Coast
goes global

BC REAL ESTATE

Canada’s aging population
means seniors’ housing will offer
attractive opportunities in the future.

Foreign investment keeps Vancouver housing
prices high, with capital inflows of US$697 million
pouring into the city in the last 12 months.
Source: PwC Emerging Trends in Real Estate Report 2015

FOREIGN INVESTMENT IN BC
A 2013 report by Sotheby’s International Realty Canada found that foreign
buyers account for about 40% of demand for Vancouver’s luxury single-family
homes. Vancouver is increasingly seen as “hedge city”, a place where the
super-wealthy can invest in local real estate as a hedge against risk.

RISE OF THE SMALL HOME6
Examples of
small homes:

17,893 housing units of

What is a small home?
Less than 500 sq. ft. for one or two
people, 750 sq. ft. for a household of
three or more.
Increase in one-person households –
27.6% of all Canadian households.

300-500 sq. ft.
in BC as of 2014.

micro-apartment, laneway home,
or tiny house on wheels

People interested in buying
or renting micro-apartments
have housing budgets of
$900-$1000/month.

A 2012 City of Vancouver survey of
laneway home owners found that
68% chose a small home because
it’s a detached dwelling. 57% live in
a small home due to affordability.

HOW BIG IS A HOUSE?
Visual comparison of average
new home sizes around the
globe (2009 data). Average new
Canadian home size is 181 sq. m.
(1948 sq. ft.).

6

Best practices and lessons
learned with small market units,
The Real Estate Institute of BC

page 6

|

I N D U S T R Y U P D AT E

Hong Kong 45
United Kingdom 76
Japan 95
France 112

China 60
Sweden 83
Germany 105
Denmark 137

Russia 57
Italy 81
Spain 97
Greece 126

Canada 181

Australia 214

United States 201

Average new home size around the globe in m2
Source: Shrink that Footprint
(using sources CommSec, RBA, UN, US Census). Note: data for 2009 builds.
*China figures urban only.