Typically, condo developers see rental projects as risky. But, with the red hot real estate market in Vancouver, that may be about to change. According to an article in the Vancouver Sun, three new highrise towers planned beside Rogers Arena will offer hundreds of rental suites.
According to the article, Aquilini Developments and Construction was originally approved by the city for a commercial tower and was planning to favour condos in the development. But, now Aquilini wants to change the West Tower from commercial to rental and plans to seek rezoning for two new towers.
Why the change? David Negrin, president of Aquilini, acknowledges the risks but feels there is a need for rentals in downtown Vancouver. If the rezoning is granted, it will likely be the largest rental project in Vancouver in the last 30 years.
With high condo prices in Vancouver, choosing to offer rental properties may turn out to be lucrative in the long run. In the article Negrin notes: “Prices for condos are extremely high and that’s one of the reasons we went with this. We want to attract young families and single people.”
Negrin isn’t the only one who notices the demand for more rentals in Metro Vancouver. In April, Lougheed Village in northeast Burnaby, sold for $80 million, one of the biggest transactions of its kind in BC history.
Will rental developments continue to pop up around Vancouver? Only time we’ll tell. In the meantime, we’ve got our eye on this emerging Vancouver trend.