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V1488
Uses: rental, commercial
Address: 1488 Cook Street
Municipality: Victoria
Region: Downtown Victoria
Storeys: 13
V1488 is a 13-storey purpose-built rental tower with ground floor commercial space in downtown Victoria's Harr... (view full profile)
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[Downtown Victoria] "V1488" | 1075 Pandora/1488 Cook Street | Built - completed in 2018

Rental Commercial

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#581 Bingo

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Posted 23 January 2018 - 04:55 PM

Huh?

 

Huh too.


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#582 tjv

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Posted 23 January 2018 - 05:28 PM

There's not that big of a private sector in this city. People don' make great wages. Who is going to live there and pay that? 'tThis isn't Toronto, we don't have all the head offices. Victoria lost all it's lumber, fishing and ship building industry. Then more recently most of it's tourism industry thanks to the US's Patrot act. Government workers don;t make a lot.

then who is buying the houses in this town?  you can buy a dumpy house in the core for 800k which will cost you around 4k a month in mortgage plus property taxes, heat, etc, etc. 

 

If people want new apartment buildings, well guess what this is what they cost to build and the developer is not renting at a loss.



#583 tiger11

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Posted 23 January 2018 - 06:20 PM

Just wait until the new stock of condos purchased as rental investments hit the market.

With mortgage rates on the rise, the stress test requiring a higher down payment, higher taxes in the form of the sewage treatment plant and the ever increasing municipal costs, studios will be renting for that amount come mid-2019.

That’s no joke. The lack of housing supply in this region has only one effect and we’re seeing it now.

 

I'm more under the impression that rental rates will more or less steady out over the next few years? I agree that increased interest rates, as well as stress testing will push home ownership out of reach for many individuals. I think the surge of new product in the form of both purpose built rental and condominiums will help to alleviate some of the pressure leading to a higher vacancy rate and therefore smaller increases in rental rates.   

 

Victoria has severely under built (roughly between 2010-15) when you compare dwellings constructed vs in migration experienced in the region. We have already seen a slight increase in the vacancy rate, albeit quite nominal, with the start of the new supply entering the market. 


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#584 Mike K.

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Posted 23 January 2018 - 07:48 PM

I just got off the phone with a partner at Cox Dev, the developer of V1488. He says the first wave of tenants will be moving in in February and the next wave in March, followed by another wave in April. They stagger the move-ins to ensure any vacancies that occur after the one year lease period are also staggered.

Market sentiment, he says, is already well versed in rising rental rates and folks aren’t batting an eye. The top-end suite is listed for well north of $3000.
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#585 Nparker

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Posted 23 January 2018 - 07:51 PM

...The top-end suite is listed for well north of $3000.

How much square footage and what amenities does $3000/month get you?



#586 Mike K.

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Posted 23 January 2018 - 07:53 PM

I'm more under the impression that rental rates will more or less steady out over the next few years? I agree that increased interest rates, as well as stress testing will push home ownership out of reach for many individuals. I think the surge of new product in the form of both purpose built rental and condominiums will help to alleviate some of the pressure leading to a higher vacancy rate and therefore smaller increases in rental rates.

Victoria has severely under built (roughly between 2010-15) when you compare dwellings constructed vs in migration experienced in the region. We have already seen a slight increase in the vacancy rate, albeit quite nominal, with the start of the new supply entering the market.


As long as demand keeps up, prices have nowhere else to go but up with land and construction gaining as much as they are.

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#587 tjv

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Posted 23 January 2018 - 09:09 PM

I just got off the phone with a partner at Cox Dev, the developer of V1488. He says the first wave of tenants will be moving in in February and the next wave in March, followed by another wave in April. They stagger the move-ins to ensure any vacancies that occur after the one year lease period are also staggered.

Market sentiment, he says, is already well versed in rising rental rates and folks aren’t batting an eye. The top-end suite is listed for well north of $3000.

I don't think the building is fully rented yet so that is the real reason for the staggered dates.  Who did you talk do, Dan Cox?



#588 mike1981

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Posted 23 January 2018 - 09:41 PM

then who is buying the houses in this town?  you can buy a dumpy house in the core for 800k which will cost you around 4k a month in mortgage plus property taxes, heat, etc, etc. 

 

If people want new apartment buildings, well guess what this is what they cost to build and the developer is not renting at a loss.

Folks retiring from Vancouver or Toronto? We are still less expensive than them. There is always a certain number of wealthy folks around that would never rent an apartment. A few years ago, maybe ten, you could rent a one bedroom for $575 a month then all of a sudden it's $1,050. What happened, wages never doubled. If you are making minimum wage or close to minimum wage that kind of rent takes almost all of your take home. Good bye steaks and car ownership.



#589 RFS

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Posted 23 January 2018 - 10:29 PM

Folks retiring from Vancouver or Toronto? We are still less expensive than them. There is always a certain number of wealthy folks around that would never rent an apartment. A few years ago, maybe ten, you could rent a one bedroom for $575 a month then all of a sudden it's $1,050. What happened, wages never doubled. If you are making minimum wage or close to minimum wage that kind of rent takes almost all of your take home. Good bye steaks and car ownership.


You're not wrong and its an avoidable state of affairs. People should be out protesting all the government created restrictions that stop developers from building more cheap housing. Everytime i drive past prime development land sitting idle in the region I am reminded that the system is failing
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#590 MarkoJ

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Posted 23 January 2018 - 11:32 PM

You're not wrong and its an avoidable state of affairs. People should be out protesting all the government created restrictions that stop developers from building more cheap housing. Everytime i drive past prime development land sitting idle in the region I am reminded that the system is failing

 

Your average person doesn't understand supply and demand.


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#591 tjv

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Posted 24 January 2018 - 06:42 AM

Folks retiring from Vancouver or Toronto? We are still less expensive than them. There is always a certain number of wealthy folks around that would never rent an apartment. A few years ago, maybe ten, you could rent a one bedroom for $575 a month then all of a sudden it's $1,050. What happened, wages never doubled. If you are making minimum wage or close to minimum wage that kind of rent takes almost all of your take home. Good bye steaks and car ownership.

I am sure there are people from Vancouver and Toronto moving here, but there are a lot of locals buying too

 

But here is reality, this building is not the same caliber as the old apartments that rented for 575.  Its the same in housing you aren't getting a new house for the same price as a 40 year old house.  Wages have also gone up a lot in the last 2 years, my entry level workers are up about $5/hr alone.

 

This is the reality.  If you want to continue to live here you should probably get a roommate or move out to Langford to rent.  Its basic supply and demand.

 

Government, especially local government comes up with more and more stupid regulations that just add on to the cost of housing.  An example, I put a deck onto my house, the building inspector wanted the confirmation of the dimensions.  I said sure I can do that which he said a surveyor needed to measure it.  So the surveyor measured it with a tape measure and charged me ~$400.  Stupid things like this just add on to the cost to build a house and I guarantee you it will happen many times until poof add another $10k onto the cost of the house


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#592 Mike K.

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Posted 24 January 2018 - 07:11 AM

I don't think the building is fully rented yet so that is the real reason for the staggered dates. Who did you talk do, Dan Cox?

You have to stagger. Otherwise you’ll have people stuck on the ground floor into the middle of the night, sleeping in their vehicles or finding couches somewhere else, and that’s not a great way to welcome them to a luxury building. Brand new buildings also have quirks, and having a fraction of residents while they get dealt with is far easier than with a full house. I’ve been through something like this and know how hectic things can get.

Why do people love controversy so much? There’s none here, but holy moly that doesn’t stop the worry worts from fretting over nothing.

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#593 mike1981

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Posted 24 January 2018 - 07:34 AM

Your average person doesn't understand supply and demand.

I know. We're dumb, we're also broke most of the time, have no savings, can't afford to buy anything, and haven't been on a vacation in many years. But there's lots of us. Not good business prospects for the real estate biz I'd imagine.



#594 mike1981

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Posted 24 January 2018 - 07:54 AM

You're not wrong and its an avoidable state of affairs. People should be out protesting all the government created restrictions that stop developers from building more cheap housing. Everytime i drive past prime development land sitting idle in the region I am reminded that the system is failing

Thanks. I think the ALR is a big part of the problem. Most of it is being used for industrial purposes anyways; daffodils, greenhouses, wineries, pumpkins. Not food. Like to see some suburban developments like we had in the 50's and 60's. You could buy a 1200 sq ft house for $15-18,000 in the sixties in Toronto. Single earner family. Nothing fancy but you got by. Didn't need a university degree with a fancy government job either. $8,000 a year was the average wage. No sidewalks or curbs, ditches. Unfinished basements of course. But the schools were built and the local plaza's.


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#595 jonny

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Posted 24 January 2018 - 09:03 AM

What happened

 

Answer:

 

Supply and demand is perhaps one of the most fundamental concepts of economics and it is the backbone of a market economy. Demand refers to how much (quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and quantity demanded is known as the demand relationship. Supply represents how much the market can offer. The quantity supplied refers to the amount of a certain good producers are willing to supply when receiving a certain price. The correlation between price and how much of a good or service is supplied to the market is known as the supply relationship. Price, therefore, is a reflection of supply and demand.

 

https://www.investop.../economics3.asp

 

The cost of goods and services has nothing to do with wages. It has nothing to do with the historical cost of things. The fact that a can of Coca Cola used to cost $0.05 in 1965 is an interesting factoid, but is otherwise irrelevant today.

 

Something like 2% of hourly wage earners earn the minimum wage. I have never understood why we obsess so much over minimum wage earners - the vast majority of which are children and young adults who are not paying their own way, anyway.

 

We have demand that is going up each year, which is primarily driven by population growth. Supply has simply not kept pace, for a variety of reasons, including very restrictive local zoning and highly constrained housing construction. Throw in low interest rates, the proliferation of rental suites and a well performing economy and here we are.   

 

In terms of this project - we're talking about quality rental housing for young professionals. The quality rental unit market is severely under-served here. 



#596 RFS

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Posted 24 January 2018 - 09:08 AM

Jonny its not simple supply and demand because there are non market forces at play like 14 municipal governments and a general anti development sentiment making it as difficult as possible to build. In Calgary or Edmonton they dont have this problem and you can buy a brand new 3 bedroom detached home with yard for around 300-350k. I realize its a different market there but the point is the supply side of the equation is not where it naturally should be. We have tons of land.

#597 RFS

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Posted 24 January 2018 - 09:09 AM

I agree with mike1981 and I think it is an issue everyone should be mad about. But you cant blame the developers they work with what they are given like the rest of us

#598 jonny

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Posted 24 January 2018 - 09:09 AM

Jonny its not simple supply and demand because there are non market forces at play like 14 municipal governments and a general anti development sentiment making it as difficult as possible to build. In Calgary or Edmonton they dont have this problem and you can buy a brand new 3 bedroom detached home with yard for around 300-350k. I realize its a different market there but the point is the supply side of the equation is not where it naturally should be. We have tons of land.

 

Everything you described here affects supply. 



#599 jonny

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Posted 24 January 2018 - 09:12 AM

We have demand that is going up each year, which is primarily driven by population growth. Supply has simply not kept pace, for a variety of reasons, including very restrictive local zoning and highly constrained housing construction. Throw in low interest rates, the proliferation of rental suites and a well performing economy and here we are.   

 

Seriously RFS, did you not read my post?


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#600 RFS

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Posted 24 January 2018 - 09:14 AM

Thanks. I think the ALR is a big part of the problem. Most of it is being used for industrial purposes anyways; daffodils, greenhouses, wineries, pumpkins. Not food. Like to see some suburban developments like we had in the 50's and 60's. You could buy a 1200 sq ft house for $15-18,000 in the sixties in Toronto. Single earner family. Nothing fancy but you got by. Didn't need a university degree with a fancy government job either. $8,000 a year was the average wage. No sidewalks or curbs, ditches. Unfinished basements of course. But the schools were built and the local plaza's.


This idyllic lifestyle is the antithesis of everything our city council believes and promotes. Home ownership? Old fashioned! Single earner family with kids? Bigotted and racist! No degree? Ignorant! Car? Dont even freaking go there.
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