6158 replies to this topic

[Mike K.]

350 newly built condos are sitting empty in Victoria?

Where would those be?

Nest is sold out, Haven has 1 unit remaining, Mod has rented out unsold inventory.

Are there any new builds in Victoria outside of those above with empty units? Dockside, maybe? Anything at the Railyards? It can’t be a lot though.

Out on the West Shore there have been several completions but I still can’t figure out how to get to 350 units.

[Victoria Watcher]

The government says we must keep building though. Faster!

[dasmo]

New building by the hospital still has vacancy sign out.

[Mike K.]

New building by the hospital?

[dasmo]

Vic general. https://www.westurba...15-erskine-lane

[Mike K.]

Oh right, but those are rentals. They have a ton of units to lease out, close to 350 I think. It'll take some time.

[dasmo]

Can’t be that big a housing crisis then.

[Mike K.]

There's absolutely an affordability crisis now, though. Not many single people can afford a new 1BR, nearly $3,000 per month residential cost (rent, utilities, insurance, parking fee, storage fee). It's pricey even if you split that cost, if you're making $65k per year.

[Victoria Watcher]

Are the new builds the government wants us to build cheaper, then?

[Mike K.]

Nope. They're making them even more expensive to build.

 

Even CMHC is running into problems with its MLI Select lending product intended to reduce costs for developers in exchange for lower rental rates. Developers are now required to put up more capital to make the loan work, and some may be running into trouble as they build.

 

An innovative new multi-unit mortgage loan insurance product focused on affordability, accessibility, and climate compatibility.

 

Access reduced premiums and longer amortization periods based on your level of commitment to affordability, accessibility, and climate compatibility using MLI Select.

 

 

- https://www.cmhc-sch...rance/mliselect

[Sparky]

It just dawned on me as to how to make housing more affordable on Vancouver Island.

Reduce the ferry sailings by half.

There…you can thank me 5 years from now.

[Tony]

Or you could just make the minimum wage $100 an hour.........

[Mike K.]

See. That’s EV owner economics

[Victoria Watcher]

Mike Miller, founder of Abstract Developments, has also felt a change in the air.

Miller, who has six multi-family projects and 185 housing units coming out of the ground right now, said the market is slower than it has been for 15 years for those in residential development.

He’s seen a softening of costs for skilled trades as a result. Abstract recently re-tendered the work to rebuild the partially completed 77-unit condo building in the 3800-block of Quadra Street at Palmer Road that was destroyed by fire last year.

“We got better prices [for trades] now than three years ago,” he said.

Miller said buyers have been slow to act, banks have tightened the purse strings and economic uncertainty and inflation are still casting long shadows.

“I’ve got more standing inventory now than I’ve ever had in my entire career by a landslide,” he said.



https://www.timescol...-years-11337613



Ross Soward, the City of Victoria’s housing manager, said despite a steady stream of new units hitting the market, demand remains strong.

The city maintains it will need another 26,000 new housing units over the next 20 years.






Guy that sits at City Hall all day (or probably at home) collecting taxpayer money says demand is strong. Guy building 185 units says the opposite.

Edited by Victoria Watcher, 12 October 2025 - 06:48 AM.

[Victoria Watcher]

Market different from Toronto, Vancouver

 

Typically the City of Victoria has aimed to have between 900 and 1,000 new units built annually, but Soward said because they are playing catch-up, the sweet spot would be in the range of 1,200 to 1,300 new units each year.

 

Soward said there is a broad housing challenge facing the province, and parts of it constitute a crisis, notably the lack of affordable housing.

 

But he said the crisis does not mean the region has overbuilt.

 

“If we had a whole bunch of projects that were sitting with thousands of units of vacant condos, that would be concerning for sure. But that’s not the situation in Victoria right now,” he said.

 

Soward said right now, the homebuilding market is a mixed bag, from developers forging ahead to others telling the city they are struggling to make the numbers work on housing projects that were approved a year or two ago, when construction prices were lower.

 

Toronto-based developer Starlight, for example, has started work on a redevelopment that will transform the 900 and 1000 blocks of Yates Street with five residential towers with about 1,500 rental suites, 100,000 square feet of commercial buildings, and green space.

 

Howard Paskowitz, vice-president of development for Starlight, said they remain bullish on the region.

 

“We know there’s a real shortage of housing here in Victoria,” he said, adding the city’s market does not resemble Vancouver’s or Toronto’s.

 

“When you’re looking at the condos that are sitting empty [in Vancouver and Toronto], a lot of those were built to satisfy the need of investors and not the end-user,” he said.

 

 

 

 

 

 

 

“We know there’s a real shortage of housing here in Victoria,” he said, adding the city’s market does not resemble Vancouver’s or Toronto’s.

 

“When you’re looking at the condos that are sitting empty [in Vancouver and Toronto], a lot of those were built to satisfy the need of investors and not the end-user,” he said.

 

 

 

OK, we understand this.  Toronto and Vancouver condos were built to "satify the needs of the investor":  ie.  smaller condos cost less, and smaller condos bring in more per square foot per month than larger condos.  That's all true.  It's always been true.

 

But it's hard to see how Starlight, which is also an investor, is doing things so different.   Somehow they can deliver a product that has a larger quare footage and costs less per square foot monthly, and they still make profits?

Edited by Victoria Watcher, 12 October 2025 - 08:48 AM.

[Mike K.]

An REIT or pension fund might end up the owner upon completion, in which case the company would sell at a profit, presumably. But who knows.

Also, we are nowhere near 1,200 or 1,300 new units in the CoV per year. In total there are 1,600 rentals under construction in downtown Victoria right now, with completion through 2029.

[Victoria Watcher]

Free event to help Oak Bay seniors navigate the real estate market

RE/MAX realtor Tony Joe will offer tricks and tips to help make moving easier

https://www.vicnews....-market-8276338








Oak Bay moves ahead with plans to limit real estate offices on The Avenue

Council could soon bar new real estate offices from operating out of select street-level shopfronts

https://www.oakbayne...-avenue-8299610

Edited by Victoria Watcher, 13 October 2025 - 12:33 PM.

[Victoria Watcher]

Lolz.

Also, Tony Joe is a good guy.

Edited by Victoria Watcher, 13 October 2025 - 12:33 PM.

[Mike K.]

Very good guy, for sure.

[Victoria Watcher]

One of the most genuine, honest and positive yet humble guys I’ve ever met. He’s great.

Edited by Victoria Watcher, 13 October 2025 - 01:39 PM.