Vancouver’s commercial real estate sales hit a new record
Sep 25, 2012
Commercial real estate sales across Vancouver’s Lower Mainland hit a record $5.71 billion over the last fiscal year, according to a new report from RealNet Canada.
An article in The Vancouver Sun notes that, “While the commercial market, particularly for retail properties, has outpaced residential sales growth for the past five years, more than half has gone into deals for raw land.”
The majority of these raw land purchases are intended for housing developments, however, raw land purchases are counted as a commercial sale if no houses have yet been built. In the article, George Carras, president of Real Net Canada, argues that the commercial sales data suggests that any residential slump will be short lived.
$3.2 million, more than half of the record-setting sales volume between July 1st 2011 and June 30th 2012, was put into raw land deals. Of the $3.2 million, 62 per cent went toward land set aside for residential use. This means that one third of the money that changed hands in commercial deals is set for houses, condos, and apartment buildings.