State OF THE MARKET
There is no doubt the COVID-19 pandemic has been the major topic of conversation in the real estate market this past year. While the pandemic certainly had an impact on the development land market in Surrey, the big news in Anniedale-Tynehead in 2020 was the commencement of construction on the long-awaited services including sanitary and water.
With construction now well underway, developers finally have some certainty as to the development timeline for land in the area. This additional certainty makes Anniedale-Tynehead a much more appealing prospect for developers and builders. In the latter half of 2020, as the broader real estate market began to rebound, we saw an increase in demand for land in the Anniedale-Tynehead area from builders and from those developers who had previously stayed away due to the unknown development timelines. Like all emerging neighbourhoods, development is still not without its challenges (more on that later).
Development Land Transactions
Typically, we would anticipate a servicing milestone such as the start of construction to spur a flurry of land transactions but this was tempered by the pandemic’s drag on the broader real estate market. It wasn’t until the latter half of the year that land sales picked up again and, with the typical land transaction in the Fraser Valley having a 12-18 month completion period, we won’t see the data from these transactions for some time yet.
With construction of the major services underway for the central portion of Anniedale-Tynehead’s 1,000 acres, 2020 also saw the first of what will be many new development applications. We have highlighted a handful of the in-process applications below.
ANNIEDALE-TYNEHEAD Land value trends
Development Challenges Driving Land Values
Construction finally starting on the services for Anniedale-Tynehead is an achievement not to be understated, but the nuance often missed regarding this milestone is that what is currently under construction does not service the entire 1,000 acre neighbourhood. The services will provide the spine, or foundational components (pump station, force mains, etc.) required to service the central portion of the neighbourhood roughly between 172nd Street and 180th Street. Land outside this area could take several more years to be serviced. As a result, land values in Anniedale-Tynehead continue to follow the trend we have been observing the past couple years which is illustrated below: land values remain highest for the central portion which is acquiring services first.
If you have any questions, or if there is any further information that would be particularly helpful to you, don’t hesitate to contact Mike Harrison. To receive future reports directly to your inbox, please sign up for our development land newsletter here.
In creating this report we consult planning and engineering staff at the City of Surrey, survey multiple land transaction and new residential reporting systems (Commercial Edge, MLS, Urban Analytics New Home Source), and analyze municipal development data to bring you the most relevant information.