For decades in Metro Vancouver, private real estate developers have benefited from the significant uplift in land value as a result of new public transit infrastructure, particularly new SkyTrain extensions, and the associated rezoning allowing for new, higher-density development.
TransLink is now looking into capturing some of this value for reinvestment to help fund new infrastructure, repay existing debt for past infrastructure investments, and fund operating costs of public transit operations, as well as increase the regional supply in transit-oriented affordable rental housing. All of this will ultimately help reduce the number of trips made by private vehicle.
“TransLink funds its share of the capital and operating cost of the regional transit system using a variety of revenue sources, including transit fares, property tax, fuel tax, parking tax, and the new regional transportation development cost charge (DCC) that came into effect in January 2020,” reads the report.
“The region needs more investment in transit infrastructure, requiring additional funding. TransLink is interested in exploring new sources of revenue that will be sustainable in the long run and that have the potential to advance regional policies.”
TransLink fiscal forecast. (TransLink)
A newly released study by Coriolis Consulting, commissioned by TransLink, examines a number of mechanisms the public transit authority could take to increase land value capture. The findings will be used by TransLink staff and both municipal and regional governments to draft potential new ancillary revenue sources.
Buying and selling land for development opportunities
To a relatively limited extent, TransLink already practices land disposition and acquisition as a revenue-generating tool, by marketing its properties that become unnecessary for its operations and acquiring land for new SkyTrain extensions.
TransLink also disposed of its surplus land at SkyTrain’s King Edward Station, including the land adjacent to the station and air rights over the station entrance building. Cambie Star, an eight-storey residential and retail building, was completed at this property in 2017.
King Edward Station with its new bike parkade and the Cambie Star building. (Jeremy Segal / W.T. Leung Architects)
However, the study states the public transit authority can become “more creative and aggressive,” such as marketing portions of its properties that are not entirely needed or air rights above transportation facilities that will remain.
TransLink could also acquire additional properties when buying land for new infrastructure projects, especially when there are opportunities for a land assembly that will result in strong development opportunities after the SkyTrain project is complete.
“Because TransLink is engaged in long-term planning for new transit investment, it is in an excellent position to acquire good quality development properties well in advance of new transit construction,” reads the report.
“TransLink can take advantage of general increases in market value, the new value created by transit investment, and new value that is associated with increased density.”
Fletchers Fabricare at 2096 West Broadway, Vancouver. (Google Maps)
Along the Broadway Corridor, the public transit authority has made a number of high-profile acquisitions relating to future transit infrastructure and development opportunities.
It acquired Fletchers Fabricare — the southeast corner of the intersection of Arbutus Street and West Broadway, directly across from the future Arbutus Station subway entrance at the northeast corner — for $17.1 million.
At Commercial-Broadway Station, it purchased The Hub — the brick retail buildings on the north side of the station that are occupied by businesses such as Shoppers Drug Mart, A&W, Blenz Coffee, Megabite Pizza, and Booster Juice. This $36-million acquisition will potentially allow for a future third pedestrian overpass over East Broadway reaching an additional Expo Line outbound platform, plus revenue-generating retail and office redevelopment opportunities.
The Hub retail buildings at 2460 Commercial Drive, right next to SkyTrain’s Commercial-Broadway Station. (Google Maps Streetview)
TransLink’s developer arm
As a real estate developer, if TransLink were to directly participate in development projects, it would not only generate a new source of revenue but enable the public transit authority to gain the tool of the “most direct possible means to shape development and integrate land use and transportation.”
The public transit authority would profit from being involved in financing, building, and selling market-oriented developments, instead of merely selling or leasing property. This could be accomplished alone or in partnership with other developers.
Such developments do not necessarily have to be condominiums, but they could be retail, office, and market rental housing at transit-oriented locations to provide the public transit authority with a portfolio of long-term, revenue-generating property.
The study also suggested considering the idea of adding an affordable housing developer mandate to TransLink, with the public transit authority offering some of its development parcels to non-profit developers or the public sector for new affordable rental housing. But this would reduce the available revenue from such properties towards TransLink’s primary mandate of public transit.
Artistic rendering of the City of Lougheed’s transit plaza area, next to Lougheed Town Centre Station. (Shape Properties)
If TransLink were to set a target goal of making $25 million annually from spearheading development projects, it would have to be involved in over one million sq. ft. of new development each year — equivalent to approximately 800 residential units and several large office buildings.
This could be accomplished by combining land acquisition and disposition with direct participation in development. Municipal governments and the private development community have expressed their support for both of these mechanisms.
Hong Kong’s MTR transit system is renowned for its ability to use land value capture as a significant ancillary revenue source and ridership driver.
In 2019, the MTR recorded HK$54.5 billion (CAD$9.5 billion) in revenue, with HK$5.1 billion (CAD$884 million) coming from its property rental and management businesses, including high-density residential and office clusters, and dozens of major shopping malls around its stations.
Municipal governments, especially the City of Vancouver, are increasingly reliant on developer-funded CACs and density bonusing to finance their new public parks, libraries, childcare facilities, transportation improvements, and affordable housing.
“Any [CACs and density bonusing] revenue received by TransLink could otherwise have gone to local government. For this reason, local governments may not agree that revenue sharing is in their interests,” reads the report.
“If TransLink involvement is perceived as making the system more complicated or time-consuming, it will be resisted by the development industry. If TransLink involvement significantly increases total expectations for CACs, then it could reduce the incentives for land owners and developers to be involved in the rezoning process, leading to reduced pace of development and rising house prices.”
Artistic rendering of Broadway Subway’s South Granville Station integrated into the retail and office development of 1465-1489 West Broadway, Vancouver. (Musson Cattell Mackey Partnership / PCI Developments)
A benefiting area tax is an added property tax that could be applied to areas where new SkyTrain stations are built, as well as frequent transit development areas and corridors.
In 2018, the total property tax revenue, based on the 7% rate, collected by TransLink was approximately $373 million, accounting for about 20% of the public transit authority’s total revenues.
Currently, properties within a 400-metre radius of an existing SkyTrain station (Expo, Millennium, and Canada lines) have a combined total assessment value of about $167.5 billion — equivalent to 13% of the entire region’s assessment base. A 2.2% benefiting area tax applied on the properties within these areas, for example, would theoretically generate $167.5 million in new annual revenue, including $78.6 million from residential properties, $79.4 million from businesses, and $9.5 million from other classifications.
If TransLink were to use a blanket property tax approach to increase revenues, its regional property taxes would have to increase to 14% from the current 7%.
Nearly the entire construction budget for Capstan Station is funded by the city’s ability to raise $31.5 million from area-specific private sector development. Construction is anticipated to begin later this year for a completion and opening in the middle of 2022.
Artistic rendering of Concord Gardens’ Picasso and a conceptual depiction of the future Capstan Way Station. (GBL Architects / Concord Pacific)
As for a share of the property transfer tax, this would entirely depend on negotiations with the provincial government, which collects this revenue directly for its own budget. To raise $25 million annually, TransLink would need a 1.7% share of property transfer tax revenues generated within Metro Vancouver, but this would be affected by the fluctuating volumes in real estate activity and property values.
While there is broad municipal government and stakeholder support for the property transfer tax mechanism, the support from municipalities for the benefiting area tax is mixed.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
