2009 Edmonton Transportation Effect Research Report Concludes That Select Property Owners Will Receive...May 27, 2009
Provincial And Federal Government Stimulus Packages To Have
Edmonton, AB — May 27, 2009 — The Real Estate Investment Network (REIN™) a Division of Cutting Edge Research Inc. is pleased to release its 2009 update to The Edmonton Transportation Effect, which details the impact of the upcoming transportation improvements, part of the government stimulus packages, on housing in Edmonton. The report’s research concludes that prices in select Edmonton neighbourhoods will receive a 10% to 20% premium, over and above what the rest of the city’s market does in the coming years.
“Our tax dollars are being spent; this is an opportunity for average Edmontonians to profit from those dollars. When people look for a property to purchase — be it their primary residence or an investment property — they take into consideration affordability, commute times and commute costs,” said Don Campbell, the report’s lead author and president of the Real Estate Investment Network. “If you can reduce commute and travel times to and from an area, you make that area much more desirable as a place to live, and thus an increase in demand occurs.”
There is a national focus on building infrastructure with a major focus on transportation improvements. Transportation is one of the twelve key fundamentals that drive real estate values up or down. This report focuses on how the completion of the Anthony Henday Ring Road and the expansion of the LRT will improve accessibility to the downtown core, which in turn will raise the value of real estate that is in close proximity to these transportation improvements.
Their detailed research has found that there are four “Tiers of Impact” that will occur in the Edmonton region:
First Tier: areas which will witness the most positive impact of the transportation improvements, most of which are located on the 111th street corridor. This region will enjoy the twin impact of the Ring Road access and LRT expansion: Blue Quill, Ermineskin, Sky Rattler, Twin Brooks, Park Allen, McKernan, Belgravia
Second Tier: areas which will also feel a strong positive impact with one of the major improvements significantly increasing long term demand: South Mill Woods, Pleasant View, Lendrum; West End including, Jamieson, Glastonbury, Aldergrove, Thorncliff & Belmead
Third Tier: areas which will feel the impact in years to come once the Northern Section of the Ring Road is designed and completed: (NW) Castledowns neighbourhoods, Lago Lindo; (NE) Miller, Casselman, Kirkness, Fraser, Rundle Heights, Abbotsfield
Fourth Tier: Regions which will feel the ripple effect outward from the main impact areas. These include St. Albert, Ft. Saskatchewan, Devon, and Sherwood Park.
When the Ring Road and the new LRT stations are completed (ongoing for the Henday and 2010 for the LRT), communities within an 800-metre radius of these transportation improvements can anticipate a 10%–20% increase in their property values. The largest effect will be felt in older and more established neighbourhoods.
“Our research shows that when a highway increases accessibility to the region by providing new access or shorter commute times, residential property values rise by 12%–15% over similar properties not affected by the new highway,” adds Campbell, author of the best-selling Real Estate Investing in Canada. “People need to understand that commute and travel distances are now measured in minutes, not kilometres.”
The 2009 Edmonton Transportation Effect report reviews the peer-reviewed academic research that has been conducted on the impact of light rail, highway expansion and road improvements in other parts of the world.
“Gone are the days when you could get downtown from anywhere in Edmonton in under half an hour. Accessibility to highways and the LRT is now a top priority for home buyers and renters,” adds Campbell. “These transportation improvements will unleash the inherent value in these markets, such that in the future these areas will outperform the rest. If the market goes up everywhere, these areas will increase by about 10%–20% more. If the values everywhere drop, these will drop by 10%–20% less.”
The Edmonton Transportation Effect report is available free to the public upon request by emailing the Real Estate Investment Network at firstname.lastname@example.org
About the Real Estate Investment Network™
REIN does not sell or market real estate to its members or the general public, but instead conducts objective and unbiased research, analysis and investor education.
The foundation of REIN’s work is the research and analysis of current real estate trends and patterns. This information is then disseminated to members through regular seminars in Toronto, Vancouver, Calgary and Edmonton, and via research reports that detail current and emerging trends. REIN’s primary purpose is to provide expert assistance to its members and other Canadians to assist them in making sound decisions about purchasing principal residences and investment/recreational real estate. This Report is one such research educational publication, as are Don R. Campbell’s bestselling books Real Estate Investing in Canada (2005) and 97 Tips for Canadian Real Estate Investors (2006). All research can be accessed at: www.realesatateinvestingincanada.com