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By Rudy Nielsen |
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This month we are turning our attention to the
Gulf Islands, one of the hottest areas in
British Columbia to purchase real estate. Every
so often the news media reports rumors of the the latest
American millionaire to purchase property in
the region. We may be tempted to think that
properties on the Gulf Islands are becoming more
and more exclusively American. We turned to our
friends at
www.mylandcor.com to find out just who is
buying in the Gulf Islands within the last five
years. The answers may be unexpected. |
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First, let’s take a quick overview of
the Gulf Island market in the last five
years. In the red hot real estate
market, the Gulf Islands have been an
area that has been sizzling. In the Gulf
Islands the average assessment value
rose from $210,314 in 2000 to $348,523
in 2005, or a 60% increase in value.
Sales in that time frame also enjoyed a
similar increase. In 2000, 473
properties in the Gulf Islands sold. In
2005, 793 properties sold, for an
increase of nearly 60%. |
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The average sale price for a property in the
Gulf Islands also rose. In 2000, the average
sale price was $239,995, compared to the average
sale price in 2005, $328,132, an increase of
73%. Across the board, properties on the Gulf
Islands have enjoyed an increase of value, the
number of sales, and the average sale price over
the last five years. |
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While you may expect the average Gulf Island
purchaser to be found in California or New York,
or possibly even eastern Canada, but what about
British Columbia? According to
www.mylandcor.com’s research, the majority
of the purchasers of Gulf Islands tend to stick
close to home.
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According to a map of current landowners in
the Gulf Islands, we find that yes, there are a
large number of Gulf Island landowners in the
United States. However, the number of American
landowners are fewer than property owners who
live in British Columbia.
When we break this down even further into
purchasers from British Columbia, we note
that the majority Gulf Island property
owners who purchased property from 2000 to
2005 who are mainly from in southwest
British Columbia and southern Vancouver Island.
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Upon further examination, property owners of
Gulf Island properties can be found throughout
the Lower Mainland. While concentrated in
Vancouver, North Vancouver , and Richmond, there
are property owners in Surrey, Langley, Maple
Ridge, Abbotsford and Chilliwack. The Gulf
Islands are in no danger of being co-opted by
non-Canadian buyers. |
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Why are the Gulf Islands so popular among Lower
Mainland residents? These properties are more
accessible to us than to our American
counterparts. We can hop in our boats docked at
our local marinas and sail to our properties on
islands like Pender or Gambier. If we wish to
drive, BC Ferries provides us with reliable
links to the larger Gulf Islands. From downtown
Vancouver, we can hop into a
water taxi, ready to take us to our property's
doorstep. A short drive will take us to
the heliport, or even Vancouver International Airport to board a float
plane to get owners to their islands in time for
dinner. Many business owners are finding that it
is feasible to combine the laid back lifestyle
of the Gulf Islands with their business concerns
in the Lower Mainland.
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Of course, another reason for the Gulf
Island' s popularity is the abundance of
waterfront found on the islands. Over
70% of the properties on the Gulf
Islands are classified as waterfront
lots. Salt Spring Island alone has 133
kilometers of shoreline.
These waterfront properties are going
fast! Over the past two years,
waterfront lots have outsold inland lots
at a margin of 6 waterfront properties
sold to every one property. The average
sale of waterfront property on the Gulf
Islands is also reaching stratospheric
levels. Last year, the average price of
waterfront property was $489,480. In
2005, the average price for waterfront
property is currently $603,415. a
difference of about 80%. Prices for
waterfront property are double, almost
triple than non-waterfront property over
the last two years. |
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We continue to recommend the Gulf Islands as one
of the hottest spots in British Columbia to
purchase property. The ease of accessibility
from the Lower Mainland and Vancouver Island
makes this a perfect getaway spot. The beautiful
scenery, the laid back lifestyle of the islands,
and the multitude of recreational opportunities
on properties here leads us to predict that
demand for these properties won't be easing
soon.
Remember, don’t wait to buy land, buy land and
then wait.
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