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Calgary real estate market

From the article:

Westview Heights, at 825 8th Avenue S.W., comprises 343 rental units, 55 of them recent conversions from office space.

Corey Kirzinger, chief operating officer at Westbow Capital who also heads up the company’s acquisitions, said “We’re just in the process of finishing off renovations to the asset and looking at a variety of options for amenity space and then throughout this next probably year or so finishing off some exterior renovations as well,” he said, adding that work has been done on the parkade and some exterior refurbishments.

Wonder if they got any conversion money or if the market has shifted that at least small scale conversion are happening because of market forces.

Also, wonder what exterior renos are coming... they already painted it.
 
CalgaryTiger said:
From the article:

Westview Heights, at 825 8th Avenue S.W., comprises 343 rental units, 55 of them recent conversions from office space.

Corey Kirzinger, chief operating officer at Westbow Capital who also heads up the company’s acquisitions, said “We’re just in the process of finishing off renovations to the asset and looking at a variety of options for amenity space and then throughout this next probably year or so finishing off some exterior renovations as well,” he said, adding that work has been done on the parkade and some exterior refurbishments.

Wonder if they got any conversion money or if the market has shifted that at least small scale conversion are happening because of market forces.

Also, wonder what exterior renos are coming... they already painted it.
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They likely benefited from both insurance money and from many of the office tenants breaking their office leases simultaneously enabling them to consolidate to fewer floors or eliminate office tenants. Then they also already had residential amenities to piggyback on.
 
darwink said:
The price per door is the most interesting to me: $243,149!! Cap rate at 6% assuming 2% vacancy and 38% opex, and a 50/50 1 bed 2 bed mix.
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Apologies in advance for a dumb development economics 101 question - is that a good deal? What makes this notable?
 
Things have really changed in a short amount of time around me. The inventory has taken a nose dive in my area (Garrison); when friends were looking in the spring there was a property coming on every week or so. Now, nothing.

I don't know how you put the toothpaste back in the tube... Houses are so expensive it doesn't make sense to sell because the you'd have to buy a new home at growing cost (both principal and interest). It happened fast, or as Hemmingway said, "gradually and then suddenly". It's brutal out there right now.
 
I think the price gains will be hard to reverse, because Calgary's home prices have been very low relative to average incomes for a decade, so this is more just the catch up growth. As the city sprawls further and increased densification, a good location and SFH will rise at a faster premium. That's what my experience has been living through Toronto and Vancouver's price run up. Existing inventory seems to be down, but lots of infills and new builds coming on the market now. I think it'll only get worse as new builds start to slow and high rates keep people from selling.
 
gsunnyg said:
It's appalling to me that the federal government is still stubborn about cutting back immigration numbers temporarily. Decades worth of scare about the consequences of not replacing an aging population has fueled these immigration targets. Yet, I can't imagine it being any worse than what is happening to housing affordability right now and the strain on other areas as well such as healthcare services. I mean, Japan didn't collapse because of an aging population, right?

This whole situation makes me angry when I hear the federal government yapping about how they can't find an easy solution to the housing crisis, however, multiple solutions are available that can make a massive difference. Moreover, I just read that over a thousand students are waitlisted for on-campus housing at UofC, MRU, and SAIT, weeks before the semester starts. On the other hand, the Federal government is settling a dispute with the City of Toronto by giving them $100 million to house refugees. I rarely get political on these forums but an election can't come sooner. The decline in housing affordability over the last 8 years is tragic and will have lasting generational effects.
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My parents were immigrants and as a result I'm strongly pro-immigration.

What's happening right now is too much. It's idiotic and ideological. One thing that makes me very proud to be Canadian is our openness to immigration but our federal government is taking that goodwill and throwing it in the garbage.
 
trtcttc said:
I think the price gains will be hard to reverse, because Calgary's home prices have been very low relative to average incomes for a decade, so this is more just the catch up growth. As the city sprawls further and increased densification, a good location and SFH will rise at a faster premium. That's what my experience has been living through Toronto and Vancouver's price run up. Existing inventory seems to be down, but lots of infills and new builds coming on the market now. I think it'll only get worse as new builds start to slow and high rates keep people from selling.
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Agreed. I don't think we'll see much a drop if any in Calgary prices. Calgary is just joining the situation experienced by other cities. In this age of globalization, real estate in Canada is going to be hot for the foreseeable future and with Calgary's strong growth it isn't going to be any better.
 
Article relating to condo prices. Calgary is the one hotspot for condo sales...not surprising given how the market is playing catchup, and how affordable they are compared to Vancouver/Toronto.

financialpost.com

Posthaste: Condo sales are falling across Canada — except in these two markets

Higher interest rates and economic uncertainty are hitting the condo market, says new Re/Max Canada report. Find out more
financialpost.com financialpost.com

1696382601050.png
 
Surrealplaces said:
Article relating to condo prices. Calgary is the one hotspot for condo sales...not surprising given how the market is playing catchup, and how affordable they are compared to Vancouver/Toronto.

financialpost.com

Posthaste: Condo sales are falling across Canada — except in these two markets

Higher interest rates and economic uncertainty are hitting the condo market, says new Re/Max Canada report. Find out more
financialpost.com financialpost.com

View attachment 510931
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Interesting that even though Edmonton's volume is up slightly, prices fell quite a bit. The only places where prices fell more than Edmonton all had more than 10% decline in sales. Wonder why it has not become a more popular inter-provincial migration destination. Maybe not for those from the GTA or GVA but if you're priced out of Halifax, Winnipeg, Kelowna, wouldn't Edmonton be a pretty good option?
 
CalgaryTiger said:
This goes back to the Calgary versus Edmonton conversation. It really seems that it has become a level below Calgary, at least in perception.
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Agreed and that Edmonton just feels like a smaller city than its population, and the core isn't as built up. That's why I think Calgary is a top destination for interprovincial migration from major cities like Vancouver and Toronto. But those in secondary markets like Ottawa or Kelowna, moving to Calgary isn't much of a saving, whereas Edmonton is significantly cheaper. Wondering why it hasn't attracted more of those people.
 
trtcttc said:
Agreed and that Edmonton just feels like a smaller city than its population, and the core isn't as built up. That's why I think Calgary is a top destination for interprovincial migration from major cities like Vancouver and Toronto. But those in secondary markets like Ottawa or Kelowna, moving to Calgary isn't much of a saving, whereas Edmonton is significantly cheaper. Wondering why it hasn't attracted more of those people.
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Edmonton is getting worse and worse, you could tell that city is becoming more quite and empty
 
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