Kelowna to become multi-family housing hub?
In its latest study, real estate team HM Commercial Group found that Kelowna is poised to distinguish itself in the B.C. housing market through its accelerated pace of building in the residential segment.
“Demand for all forms of housing remains exceptionally strong and the City of Kelowna favours a policy towards densification in the urban town centres, which also bodes well for more affordable forms of multi-family development,” according to the Fall 2017 HM Commercial Report.
Most notably, “the Downtown Core is experiencing a boom of high density development, with projects like the 21-storey tower at 1151 Sunset Drive (now 85% pre-sold before occupancy in Spring/Summer 2018),” the report added. “New projects like One Water Street and Live at Ella are anticipated to achieve average sales of more than $600 per square foot with the upper floors expected to reach more than $900 per square foot.”
As of the third quarter of this year, the value of multi-family building permits in Kelowna totalled $95.5M, compared to the $76.9M for the whole of 2016.
The study results indicated that up to 95% of condo buyers in Kelowna will be occupying their purchases instead of using these for investment purposes—a much different situation from 10 years ago, “when up to 70% were speculative investors.”
“[This] is an excellent sign of continued strength in the market and means more people living in the urban centres and increased vibrancy,” the report stated.
The city will also benefit from an influx of wealthy elderly Canadians, HM Commercial predicted.
“As baby boomers retire, they continue to look to the Okanagan. With fewer properties available in Vancouver, Kelowna and Victoria are benefiting,” the report said, adding that the demographic shift will also be apparent in the younger generations.
“The overflow from Vancouver, combined with all of the things Kelowna has to offer, is bringing a significantly younger demographic to the City, one that is fuelling a $1.3 Billion tech sector. 262 tech companies call Kelowna home and this number is growing every day.”