South Surrey Sales & Neighbourhood Update
South Surrey continues to be a hotbed for residential development, out-pacing the Fraser Valley averages in nearly every metric from speed of development and new application submissions to selling prices and product absorption rates. Staying connected to market leading developers and the City of Surrey allows us to understand the timeline to development for each of the major development neighbourhoods in South Surrey.
The map below outlines the average selling price per acre of residential development land in each of the major development neighbourhoods in South Surrey. Accompanying the map are updates on the status of each neighbourhood, as the status greatly impacts the selling prices of development land in each area.
Grandview Area 2 – Sunnyside Heights
This plan has been held up by the lack of sanitary services but as the pump station in the southern tip of this plan was approved by Council on February 1st, 2016 we anticipate a flurry of activity and an increase in land prices. Construction on the pump station and corresponding force main are expected to complete in early 2017 which aligns well with current in-process development applications.
Grandview Area 3
A neighbourhood concept plan does not currently exist for this neighbourhood nor is it included in the City of Surrey’s 10 year servicing plan; however, we anticipate an increase in sales and development activity as a group of residents have submitted a petition to the City of Surrey to begin the neighbourhood study process.
Grandview Area 4 – Redwood Heights
This plan is in Stage 2 of the approval process which means land use has been conceptually approved and engineering is conducting their studies. Land uses typically do not change much after Stage 1. Developers have begun purchasing the best of the development properties; however, development hinges upon services which must be run through a few select properties in North Grandview Heights. As a result, the development timeline is unclear.
Grandview Area 5a – Orchard Grove
As services are available for most of Orchard Grove the neighbourhood is ready for development; however, a number of high profile development sites remain unclaimed. Developers already active in this area include Qualico, Miracon and Genex.
North Grandview Heights
Sanitary services for much of this area are still pending so development has yet to really take off, especially in the eastern portions. As the sanitary services for Grandview Area 4 will be routed through North Grandview Heights, Area 4 relies heavily on the progress in this area.
Grandview Area 1 – Morgan Heights
This neighbourhood is substantially built out but the City of Surrey is currently dealing with requests to downzone portions of it to rural zoning.
Grandview Area 5
A neighbourhood plan has yet to be established for this area despite the development of the new aquatic centre. Developers and investors have begun purchasing large parcels in anticipation of future development but land use is still unknown and according to the City of Surrey it’s premature to speculate on land use east of 168th Street.
King George Highway Corridor
Development activity has started to pick up in this 7 km long neighbourhood, especially for medium density residential product. The market has very recently begun paying enough for new townhouses and apartments that the price a developer can justify paying for a development site is rising above the property’s value as a single family home. Projects that were not financially viable 12-18 months ago are starting to make sense.
Highway 99 Corridor
The City of Surrey’s primary objective for the Highway 99 Corridor is to create employment by limiting the amount of residential development. As a result, the City of Surrey is generally not supporting residential development applications. Development is expected to start in the southern portion, near what was going to be the new casino, and work its way north over time.
Rosemary Heights Central
Applications have started trickling in to the City of Surrey from owners in this neighbourhood, as a majority of the properties have already been purchased by developers. This neighbourhood is primarily slated for commercial and industrial uses.
Rosemary Heights West
This residential neighbourhood is substantially built out with a majority of the remaining development sites already under application with the City of Surrey. Major developers currently active in this area include Polygon, Portrait Homes and Zenith Developments.
Semiahmoo Town Centre
The land use plan is in place for Semiahmoo Town Centre but development has been slow due to significant resistance from the community and minimal supply of financially viable listings.
Land uses have been established and a majority of the neighbourhood has been built out. The remaining activity is concentrated along 176th Street (Highway 15). The City of Surrey recently turned down a development application for a large site outside the Douglas plan. This indicates the City remains focused on development within the plan boundaries.
Source: Land sales from January 2015 – February 2016 from Commercial Edge and Multiple Listing Service.
Click here to read our South Surrey Development Forecast article and feel free to reach out if there is any additional information that would be particularly relevant to your investment strategy.