Leading up to the completion of the new Brookswood-Fernridge Community Plan the investor and developer community had confidence in the Brookswood market, anticipating the adoption of the new community plan would finally provide certainty regarding future land use and allow development to move ahead in a timely manner. While the new community plan confirmed land use, the introduction of a requirement for 4 new neighbourhood plans, outlining new schools, parks, and storm water detention ponds as prerequisites to development, has substantially increased the timeline to development. The resulting shift in sentiment from buyers has slowed the rapid increase in land values in Brookswood-Fernridge that we had been experiencing in 2017. There are, however, still a few areas in high demand.
We have analyzed the current development applications in Brookswood and mapped out (in green on the adjacent map) the regions with the highest concentrations of development applications as these areas will experience the most development activity in the next 12-18 months. The red and yellow highlighted regions represent high concentrations of recent residential development land sales. As development typically follows behind high concentrations of transactions, this provides insight into where we can expect to see the next wave of development applications.
WHY IT MATTERS
Understanding sales trends, development activity and the status of development in your neighbourhood is key to making informed strategic decisions regarding your property.
In addition to the information provided on the previous two pages, the value of your property is driven by two primary factors:
Land Use Designation – What can be built on the property
Timeline to Development – How long until the new homes can be built
The clarity and certainty of these factors reduces risk for developers and investors, often allowing them to rationalize paying a higher purchase price for your property. To illustrate the impact of this on land values in the Brookswood-Fernridge neighbourhood we have analyzed the last 12 months of development land transactions (properties with future development potential, larger than 1 acre), and calculated average prices across the neighbourhood.
As you can see, average prices are highest at 32 Avenue and along 200 Street where land use designations dictate future densities will be highest and where the timeline to development is shortest due to some existing services (sanitary sewer, water, etc.). Prices decrease moving south and east as this land possesses a lower density land use designation and there is no known timeline for when the area will have the services required to support the construction of new homes.
Note: Some neighbourhoods are already outperforming these averages.
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.
Sources: Commercial Edge, MLS, Township of Langley.