All Forum Posts by: Tay Huang

Thanks so much for replying, Chris. I thought this price was higher because parcels in most (not all) other parts of the city only allow 5 floors, instead of 9 allowed here. In Fraser Valley, condominiums and single family homes have bifurcated, meaning, although single family homes may have declined or remained stagnant, the average prices on condos in this area have been resilient to rate hikes and continued to experience strong demand and price increases. The Vancouver Sun on January 4th, 2023, Nathan Griffiths, Joseph Ruttle reported, "In general, condos and townhouses gained considerably more value than single-family homes, especially in the Fraser Valley...".

In the same Vancouver Sun article, using BC Assessment as the source, condominiums in Port Coquitlam gained 13 % year over year. Gates Park is very much in high demand compared to other parts of Port Coquitlam, so I added a premium to my valuations to reflect that.

I'll check my numbers again, but comparing apples to apples, I'm not seeing this as being 7x the price in comparison. Thanks for the insight, I'll definitely check. 

 https://vancouversun.com/busin...

Taking a quick look at Gates Park area of Port Coquitlam 

My friends and I are considering a large mult-family project that would involve significant financing. We don’t have experience wth projects this size. We want to ensure we’re considering potential pitfalls and optimizing our approaches to everything else. 

What I find concerning, is this parcel, located in a high-demand Vancouver suburb that has been experiencing double digit returns despite interest rate hikes, appears to be priced right, but has been listed for more than 30 days.

It’s the $9,5 million parcel listed in Port Coquitlam, BC.  The numbers we ran look really good. What are we missing? Why is it still listed? 

What is a fair valuation model for a 180 unit condominium located on a very large parcel of land (525,000 buildable sq ft), in a prime suburb, and specifically located in its highest demand neighborhood for new condominiums?

Using 17 comparable transactions from November 2020 to present day, which  a include a neighboring city with (ballpark) similar price correlations, the price per buildable square foot was $116.

I advocate that because the Pandemic was by definition a Black Swan event, and that particular market has proven to be resilient despite rate hikes, with condominiums gaining an excess of 13% year over year , that it would be more accurate to use in comparables only transactions that took place over the last year, leaving 7 of their original 17. Doing so changes the price per buildable square foot to $139. 

Three questions for CFAs or CPA/CAs with extensive suburban multi-family commercial real estate experience :

1) Which price per buildable square foot do you feel is more ethical?          

2) What would you include in the balance of your valuation?    

3) Have you noticed Deferred Maintenance being an issue that has a great deal of “opinion” built into the estimations?  

I presume this is where much of the incongruity lies. Owners, many of which are old, are being offered an incredibly low price for their homes.  
I look forward to your replies.

Cheers.