At a real estate agents conference at Jameson House recently, Rennie gave a 10-minute talk on why things are looking up after last year’s recession. He believes the market can be divided into two distinct sectors. The first is the local one based in the suburbs and Fraser Valley. The second is the city centre. It is the second one that Rennie is most excited about, anticipating investor interest from as far afield as Russia, China and Europe. He cited the instability of the American economy as an additional factor in making Canada particularly attractive to foreign investors.
Jameson House, developed by Bosa Properties and designed by top architect Norman Foster, ran into trouble towards the end of 2008. They restructured with court protection from creditors, and now only 34 condominiums remain out of 138. This development represents probably one of the last luxury waterfront properties in the downtown area.
Rennie believes the recent recession has resulted in a more conservative approach by investors. Predictions of interest rates increases later this year are also changing investor attitudes, he stated. Another factor to take into consideration is the new harmonized sales tax on residential properties that will come into affect on July 1 this year, although Rennie is unsure how this tax will affect the market and investors.
Jason Luke – Burnaby Homes
