We are pleased to share the sale of 7251-7291 188th Street, Surrey, British Columbia (the “Subject Properties”). Form was retained by the landowners to facilitate the marketing and sale of their properties, a land assembly totalling three acres of contiguous commercially designated land.
At the time of sale, the Subject Properties were improved with three separate single-family dwellings and located in West Clayton, the second urban neighbourhood in Clayton Heights, adjacent to East Clayton and the Agricultural Land Reserve (“ALR”). Initially listing the properties for sale in spring 2017, Form was successful in procuring a buyer almost immediately and secured a firm and binding deal by June 2017. At the time of subject removal the purchase price represented one of the highest per acre dollar figures seen for un-serviced, un-zoned (albeit commercially designated) land in the Fraser Valley.
The West Clayton Neighbourhood Community Plan (“NCP”) was approved in July 2015 paving the way for significant urban development and the future home of 12,000 Surrey residents. Although there are numerous civic and residential development applications in the pipeline for West Clayton, an accurate time frame as to when municipal services will be funded and constructed is still somewhat unknown. The City of Surrey recently acquired land out of the ALR as a future site for its stormwater detention pond, however storm (and sanitary) sewers have yet to be constructed. Due to the servicing restraints, Form advised the seller’s that the likely buyer would be a local land speculator versus a developer seeking a shovel-ready development site. The sale transaction ultimately completed in January 2019 after an extension was granted to the buyer to secure financing.
Generally speaking, demand for residential land throughout Metro Vancouver has softened substantially from the ultimate peaks of 2016-2017. New government policies at all levels (municipal, provincial and federal) have created an incredibly difficult environment for end-buyers to secure adequate financing. Punitive taxes, mortgage stress test requirements and rising interest rates have been the main contributing factors to a slow down on the residential marketplace. However, commercial land, whether it be designated as low density neighbourhood commercial, such as the Subject Properties, or employment designated land (ie. Industrial) continues to show signs of strength and with high deal velocity, primarily fueled by limited supply and pent up demand from tenants and owner/users.
For more information, contact Joe at 604 398 4341 or jgenest@form.ca.
