CHANGING TIMES
Recreation Properties Feature
New building codes on the horizon
Down by the lake
CONSTRUCTION A6
Marilyn Jones
2005 CREB® President
A7
A5
FREE july 15 to july 21 2016 issue 06-27 editorial 403-781-1324 advertising 403-263-4940 crebnow@creb.ca
real estate news from industry experts
READY TO TAKE FLIGHT
YYC’s expansion could help city’s real estate market soar JOEL SCHLESINGER for creb®now
F
oreign investment in the city’s real estate market is poised to take flight. And it’s in no small part thanks to the ambitious expansion of the Calgary International Airport. From the recent opening of its new runway—the longest commercial airstrip in Canada—to its $1.4-billion new international terminal opening this fall, Calgary’s bigger, bet-
ter international airport dramatically increases the number of travellers from overseas. While it’s undoubtedly a shot in the arm to the city’s struggling economy, it’s not a leap in logic to assume more foreign business and pleasure travellers could provide a boost to its real estate sector, says Eric Horvath, vice president of investment sales at Colliers International. “It’s a very interesting take on the airport expansion, and it’s the first time I’ve heard that angle,” admits Horvath, who handles foreign and Canadian investment in Calgary’s commercial real estate market. “But the argument certainly makes sense.” The economics are relatively straightforward: more travellers from overseas equate to more interest in Calgary property. Already interest has been growing even without the additional interna-
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C algary International Airport is the third busiest airport in Canada handling more than 1.5 million passengers a year.
That’s not to say foreign investors have ignored the city to date. “There’s no doubt we have already started to see some foreign investment in the Calgary marketplace,” Horvath says. But it has been a very small sliver of the overall market. The yields on large multi-family properties are certainly high enough to warrant more attention--about double those of larger centres in Canada. The challenge, however, has been options are limited for investors seeking scale. “You could count the amount of transaction worth more than $10 mil-
lion in Calgary per annum on two hands,” Horvath says. While Toronto has more than 300,000 units available in its marketplace, Calgary has about 35,000, he adds. “So the big issue hasn’t a lack of direct flights to Calgary; it’s finding product available for trade.” Still, a recent CMHC (Canada Mortgage and Housing Corporation) survey found the condo market is a hotbed for investment—just not for foreign investors.
YYC EXPANSION A3
CONTENTS NEWS BRIEFS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A3 WEEKLY FEED. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A6
CREB® STAFF
*All statistics based on monthly data compiled by CREB® via MLS® activity. Includes detached, attached and apartment.
79 REDWOOD MEADOWS DR REDWOOD MEADOWS
$499,000
CANYON CREEK OPEN HOUSE
PBOTOS BY ADRIAN SHELLARD/FOR CREB®NOW
ALBERTA OPENS DISCUSSIONS WITH WEST VILLAGE POLLUTERS
MLS® TOTAL SALES* JUN ‘14 – JUN ‘16
2664
CITY OF CALGARY
tional routes like the recently added first non-stop, weekly flights between Calgary and Beijing, which the provincial government notes will generate about $75 million of economic activity. The new Beijing flights alone will bring an estimated 37,000 Chinese travellers to the city—further cementing the airport’s reputation at a major travel hub, says Stephen Ewart with Calgary Economic Development. “Calgary International Airport is the third busiest airport in Canada handling more than 1.5 million passengers a year and the connectivity that it provides to the global marketplace – for both businesses and vacationers – is critical to Calgary’s prosperity.” With more direct routes, foreign investors from places like China-already looking beyond their traditional real estate options in Canada (Toronto and Vancouver) – are now more likely to give Calgary serious consideration.
SAT | 1 - 5 PM
Lee Edwards 403.540.0540
• Charming bungalow • Walkout basement • Backs onto Elbow River • Multi-level deck system • MLS®C4071126
A
lthough they’re remaining tight lipped on the subject, the government of Alberta has begun talks with those responsible for the creosote contamination in Calgary’s West Village. Once home to Canada Creosote (later known as Domtar), which ceased operation in 1962, the 56-hectare West Village is bordered on the north by Bow Trail westbound and the Bow River, and has been pegged as a possible landing spot for Calgary Sports and Entertainment’s CalgaryNEXT project.
PROVINCIAL A3
braggcreekrealestate.com
MAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B1 OPEN HOUSES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B15 MORTGAGE RATES. . . . . . . . . . . . . . . . . . . . . . . . . B15 @crebnow
CREBNow
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195 MOUNTAIN LION DR WEST BRAGG CREEK
$899,000
OPEN HOUSE
EVENT LISTING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A6
SUN | 1 - 5 PM
• 2666 sq. ft. on 2 acres • Understated luxury • Private setting • Adjacent to golf course • MLS®C4059088
lee@braggcreekrealestate.com