In a sign of rising optimism about Calgary’s housing market, a number of condo towers in the city’s centre are moving ahead – including two that stalled with the economy, with shovels already in the ground.
“It’s all very positive,” says David Watson, the city’s general manager of planning, development and assessment.
“It says to me people are pretty optimistic about the future, any of these plans are probably a two-year build, everyone’s looking two, three years out.”
The city is currently reviewing at least four applications for residential towers in the downtown area.
One is a new development permit for The Guardian, a Beltline condo building on a site originally slated to be the companion tower to Arriva. Construction on the second tower had stopped in early 2009, with the underground parkade underway.
Now, plans are in place to begin selling condos this fall, if the redesign is approved by the city, said Steven Cox, with Cause+Affect, which is marketing the project for owner Nicholas Hon.
While he didn’t want to reeal details about the height of the tower or the number of units, Cox said the homes have been redesigned, with “a larger proportion of more efficient units than there would’ve been.”
The preliminary website advertises that a “rare land deal + optimized living spaces = high end affordability.”
Cox said they are starting to see an increase in buyers in the Calgary market, making moving ahead with the project feasible.
“That neighbourhood is showing some signs of life and, for us, we’ve got some real confidence,” he said.
Suspended project Strategic on 4th, an excavated site at 4th Avenue and 21st Street in Mission, has applied for a $24-million building permit for a mixed-use development.
As well, a revised development permit is in for Keynote’s second tower, Watson said, as are new plans for the Lake Placid development at 13th Avenue and 2nd Street S.W.
And the group managing development in the East Village has submitted a building permit for an “experience centre” which will showcase display suites from the two housing projects set to build there.
Susan Veres, senior manager of marketing and communication for the Calgary Municipal Land Corp., said both plan to start selling units next year.
Embassy Bosa has submitted a development permit for its first phase, while FRAM+Slokker Real Estate Group’s is “imminent,” Veres added.
“The economic indicators we are seeing right now are very, very strong and very positive,” Ald. John Mar, whose ward houses most of the projects, said. “It’s incredibly positive for Calgary, especially the stalled sites.
“These are all issues we were faced with in the downturn in 2008, 2009 and much of 2010, and to see those projects come back is not only incredibly strong for the city of Calgary, it bodes well for Canada.”
Richard Cho, senior market analyst with Canada Mortgage and Housing, said that after a period where there was much more condo stock than demand, the market is coming back into balance.
“The pace of sales are stabilizing and active listings are down from last year,” he said.
But he added that apartment and condo starts have been down.
“We haven’t had too many condo starts and we’re not expecting to see a lot this year,” he said.
“Year-to-date, apartment starts are slightly down from a year ago. The positive news is apartment inventories have been moving lower in the past couple of months.”
Downtown condominium developments
1. Guardian (formerly Arriva 2)
2. Encore (formerly Midtown Gateway)
3. Keynote
4. Centuria
5. Strategic Group
6. Bosa/Embassy
7. Fram + Slokker
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