Rendering of proposed light rail in Surrey. (City of Surrey)

Major transportation projects could lead to higher property values: report

Light rail, SkyTrain, major highways could see property values rise by hundreds of thousands of dollars

Property values could shoot up for buildings within walking distance of incoming light rail in Metro Vancouver, a report from the Real Estate Investment Network suggests.

The Langley-based agency looked at cities across Canada, the U.S. and Australia and found that both residential and commercial buildings near LRT had lower vacancy rates, higher prices and sold faster than those further away from rapid transit.

In Surrey, this could affect properties near the planned $1.65 billion light rail line connecting Newton, Surrey City Centre, and Guildford, as well as homes near a proposed light rail line along Fraser Highway connecting Surrey to Langley.

READ MORE: Bidding open for Surrey light rail construction

READ MORE: Lower Mainland mayor suggests Surrey pay back $50M already spent on light rail

In Vancouver, property values could shoot up near the proposed $2.8 billion Millennium Line Broadway SkyTrain Extension.

According to the report, the values of real estate near mass transit – including light rail, SkyTrain and highways – have premiums from one per cent up to nearly 40 per cent.

Although researchers focused on rail transit, studies show that real estate values increase near newly-built highways as well.

The report found that the big difference between the impacts of rail transit and highways on property values was that highway-adjacent properties did not take longer to sell.

“The increase in value of residential properties located in close proximity to a highway was partially offset by a reduction in price as noise levels increased,” the report reads.

“However, counter-intuitively, houses impacted by highway noise did not take any longer to sell than those farther removed.

The biggest price boost was seen with multi-family homes, which saw a jump of 99 per cent in increase value if they were 400 metres from mass transit.

Back at 1,600 metres from mass transit,multi-family homes saw just a 27 per cent hike in value – the same hike as all types of properties saw on average.

Residential properties saw an 11 per cent jump when they were 800 metres from mass transit; however, it was possible to be too close – homes within 274 metres of mass transit only saw a decrease of up to 11 per cent.

However, the increase was limited to buildings near “stations, stops, and onramps,” while being close to the route itself dampened real estate values.

But although the buildings get pricey, buyers are still more than eager: the report found that residential units near light rail tend to sell more quickly and at higher prices than similar units not near transit.

Buying at the perfect moment

While there are several major transportation projects in the works in Metro Vancouver, REIN warned that buyers shouldn’t pick up any new properties until they’re sure a project will go ahead.

In Surrey, mayor-elect Doug McCallum has thrown cold water on the idea of light rail in the city, despite a fully-funded proposal for the $1.65 billion project having been signed back in summer 2018.

McCallum told the Black Press Media his team will put forward a formal motion to cancel the light rail project in Surrey at the inaugural meeting of the new council on Nov. 5, after campaigning on a promise to scrap the project in favour of SkyTrain.

READ MORE: McCallum says Trudeau ‘supportive’ of Surrey SkyTrain plans, local police force

READ MORE: TransLink defends huge spike in cost of SkyTrain, light-rail projects

REIN said investors and buyers should focus their attention “largely on areas where construction has started,” and not to gamble with ideas just in the works.

– with files from the Surrey Now-Leader


@katslepian

katya.slepian@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Just Posted

PHOTOS: Harrison students take on the Bunny Run

Harrison Hot Springs Elementary students dressed up for the Easter event

No more mobile vendors on Harrison beach

The approval of an updated business licence bylaw means Nolan Irwin is without a cart

Crown seeking 30 months for Abbotsford vehicle theft, flight from police, Chilliwack crash

Michael Joseph Hasell has 47 criminal convictions on his record in B.C. and Alberta

Harrison Festival releases 2019 line up

The 41st annual Harrison Festival of the Arts will be held from July 12 to 21

BC Ferries to pilot selling beer and wine on select routes

Drinks from select B.C. breweries and VQA wineries to be sold on Swartz Bay to Tsawwassen route

VIDEO: Agassiz, Harrison celebrate National Pet Day

From cats and dogs to lizards and chickens, residents showed off the animals that enrich their lives

Langley MP describes most recent diagnosis as a ‘miracle’

Tory Member of Parliament Mark Warawa doesn’t have pancreatic cancer, but operable colon cancer

Man driving wrong way on Highway 17 ‘seriously’ injured after crash: Surrey RCMP

Police say the driver hit a transport truck, then another car after merging from the off-ramp onto highway

Should B.C. lower speed limits on side roads to 30 km/h?

Vancouver city councillor wants to decrease speed limits along neighbourhood side roads

Lawsuit eyed over union-only raise for B.C. community care workers

‘Low-wage redress’ leaves 17,000 employees out, employers say

Landlord of alleged Okanagan shooter recounts deadly day

Tony Friesen was working in one of the units of his Penticton building when he heard shots

Foreign national arrested in connection to thefts at YVR

A woman, 60, is being held in police custody as Richmond RCMP investigate

Police pursue pesky porker on Vancouver Island

‘This was allegedly not the pig’s first escape’

Rare ‘Snow Tower’ tree blooming in Vancouver city park

A plant rarely grown in Canada is now flowering at the Bloedel Conservatory in Queen Elizabeth Park

Most Read