State of the Market
The development land market in Buquitlam-Lougheed was much slower in 2019 than the previous two years, but sales activity and sale prices for multi-family development land still outpaced neighbouring markets like Port Moody and New Westminster. Development land prices in 2019 were down year-over-year largely due to increased construction costs and a decrease in the sale prices for new homes in the area.
The market was starting to pick up pace in early 2020 but concerns about the long-term economic impact of the COVID-19 shutdown brought a further decrease in demand and lower prices for development land in Burquitlam-Lougheed. However, the situation has started to improve, especially for low-rise apartment and townhouse designated sites, as some developers are making sense of the purchase if they can obtain long completions on the transaction. On the contrary, the appetite for larger, high-density sites remains low as many condo investors are still waiting on the sidelines.
Heading into 2020 there was a perception amongst developers that many of the best sites in Burquitlam-Lougheed had already sold, and that any remaining properties with development potential were either overpriced or simply not for sale. This mentality shifted with the adoption of the land use plan for the Oakdale neighbourhood on February 24, 2020. The increase in available transit-oriented sites as a result of the new plan has brought interested developers to the area. See below for a detailed breakdown of what the adopted Oakdale land use plan means for the area.
Trends and patterns in development applications impact the value of land so we watch them closely. The red and yellow highlighted regions on the map below indicate areas containing a high concentration of new development applications. In the highlighted regions there will be an estimated 7,385 new homes built, the majority of which will be low or high rise apartments. It’s not surprising to see the applications continue to be concentrated along the transit corridor, where the land use designations allow for the highest density forms of development.We are, however, starting to see development spread out from these core areas.
Oakdale update: What is happening in the area & why it matters
After several years of planning and neighbourhood consultation, the Oakdale Land Use Update was unanimously adopted by the Coquitlam Mayor and City Council on February 24th, 2020 and will guide development in the area for the next several decades.
In the land use map pictured below, you’ll notice that:
- The highest density developments, like high rise apartments, will be concentrated around the Burquitlam SkyTrain station at the south end of the neighbourhood
- Density will decrease as you travel further away from the SkyTrain station, home types will include wood frame low-rise condos and townhouses
- The single family neighbourhoods at the north end of the plan (closer to the border with Port Moody) will largely remain as they are
The adoption of this new plan has developers showing considerable interest in acquiring properties in Oakdale. We are already working with many landowners in the area so if you have any questions regarding current property values, development potential, or property assemblies, feel free to reach out.