Residential Development in Abbotsford
2014 was a great year for residential development in Abbotsford and the trend for growth is expected to continue in 2015.
Single family development in 2014 surpassed both the 5 and 10 year averages with fewer, but much larger, subdivisions. In the first quarter of 2015 alone there were 48 new land development applications, up nearly 30% from Q1 of 2014. 80% of the new residential units are multi-family residential with a heavy focus on apartments. There are over 900 apartment units in construction right now and 69% are in mixed-use developments. Apartment sales in May of 2015 were up 17% over the same month last year.
There is a strong trend towards the development of micro-communities and Hudson’s Loft, by The Weibe Group, is a prime example of what happens when you match a modern luxurious Yaletown-style master plan community with the younger demographic of Abbotsford. The development will have its own market village, cafés, restaurants, small businesses and much more. Phase 1 of the project, which included lofts, penthouses and studios, sold out in a single day and Phase 2 is selling now.
Progress is being made on the planning and development of UDistrict, the 365 acres around University of the Fraser Valley and a key area of focus for the City of Abbotsford as attendance to the school is expected to continue to grow over the coming years. A Vancouver-based consulting firm has been selected to develop a detailed plan for UDistrict within the guidelines of the neighbourhood plan which aims to create a transit-oriented “vibrant, mixed-use neighbourhood.”
Absorption is expected to keep pace with the speed of development, largely due to Abbotsford’s affordability. The average price of a townhouse or condo sold in Abbotsford is nearly half of comparable product in White Rock and still remains significantly lower than Surrey and Langley.
2014 and early 2015 saw a number of large development land transactions in areas poised for additional multi-family and mixed-use developments so we can expect to see this growth pattern continue for quite some time.
Sources:
Real Estate Weekly, New Developments database
The City of Abbotsford, 2015 First Quarter Report – Planning & Development Services
The City of Abbotsford, 2014 Annual Report on Planning & Development
Fraser Valley Real Estate Board, Monthly Statistics Package May 2015
Fraser Valley Real Estate Board, Monthly Statistics Package June 2015
Fraser Valley Real Estate Board, Abbotsford Statistics
