It may not appeal to every property owner, but land assemblies could be an avenue for sellers to get a decent price and for the city to add much needed housing.
They dot the real estate landscape in several 91大黄鸭 neighbourhoods. Realtor Clifford May has an assembly of seven properties at Richter Street and Rose Avenue a block from 91大黄鸭 General Hospital (KGH).
鈥淭here鈥檚 no denying we鈥檙e currently in a housing crisis,鈥� May said. 鈥淲e have a complete lack of housing available in areas with large employers and other pockets where retirement-aged individuals would love to see other options that allow them to downsize.鈥�
May believes there is an increasing appetite for land assemblies from property owners and developers.
鈥淲e need the numbers to be economical so we can have a strategic exit for current owners to allow for the further development growth of the City of 91大黄鸭. That way we have a proper economic entry strategy for developers.鈥�
Homeowners getting together to build value in their properties, potentially making them more attractive to a developer, is occurring in locations where the city would like to see it happen according to Divisional Director of Planning and Development Services Ryan Smith.
鈥淐lose to the college, if you drive around some of those blocks鈥here is all sorts of land assembly in good spots. The more land for infill projects the easier it is to design a project to meet city bylaws. We don鈥檛 force land assemblies because sometimes property owners don鈥檛 want to sell.鈥�
May notes that incentives for developers to build are also important, particularly for 91大黄鸭鈥檚 rental market.
鈥淧urpose-built rentals seem to be the most favourable,鈥� he added. 鈥淭hey would yield probably a better solution to what we are experiencing.鈥�
Smith said the city provides several incentives for purpose-built projects, covering density, height, parking and taxes. Other avenues are available through the provincial and federal government including the Canadian Mortgage and Housing Corporation (CMHC).
In 2023, the federal government introduced legislation to remove the GST on new purpose-built rental housing, such as apartment buildings, student housing, and senior residences built as long-term rentals.
鈥淚t takes multiple layered incentives to make even market rental projects happen in this environment,鈥� Smith explained.
The rental market in 91大黄鸭 has been challenging over the past 20 years, with a persistent and severe shortage of purpose-built rental housing over that time according to the city鈥檚 Long Range Policy Planning Manager, James Moore.
鈥淭he best evidence of a healthy rental market is when your vacancy rate sits between three to five per cent,鈥� he said. 鈥淲e have hit that target once or twice in 20 years.鈥�
He added that for the last 10 years, the vacancy rate has dropped below one per cent and sometimes fell to zero.
鈥淚n an under-supplied market, there are a lot of people fighting for very few units and prices go up. It also means people start making tough compromises about what they can afford to live in.鈥�
Moore said supporting more purpose-built rental housing is a key priority for the city. As 91大黄鸭 grows, he expects there will be more land assemblies and similar development opportunities in the central areas of the city.
鈥淭hat is a reality and much more common in cities that mature. Development starts to see the opportunities in existing areas and how important they are to the evolution of a healthy community.鈥�
