The Impact of the Gateway Transportation Improvements on the Metro Vancouver Area
2011 Update
• The Gateway Program projects will deliver a 10%–20% enhancement of real estate values in the regions most affected. In the future, these Gateway areas will outperform the rest. If the market goes up everywhere, these areas will increase by about 10%–20% more. If the values drop, these will drop by 10%–20% less.
• In studies of the effect of transportation improvements on real estate in other jurisdictions around the world, it was found that real estate value increases occur for properties located within 500-800 metres of stations on the new transportation lines. This will include property around: the new rapid transit stations the Canada Line, as well as the UBC Line, the Evergreen Line, and Surrey’s rapid transit system when these projects are completed.
• Real estate prices in key neighbourhoods will increase more quickly than other regions due to the improved transportation linkages provided. Improved accessibility drives real estate demand. As with rapid transit, accessibility to major highway and highway improvements proved to be a major determinant for increased property values in all studies. Studies show that, as highway networks are created and existing corridors to the CBD (Central Business District) are improved, the value of real estate in the area increases.
• Values in older and more established neighbourhoods are impacted more significantly than in newer developments.
Investors should only focus on regions where they know the projects are moving ahead or are already completed. With that in mind, the key areas in these regions that will or have been positively affected are:
Primary Impact: Maple Ridge, Pitt Meadows, North Langley, Fort Langley, Abbotsford, Port Moody, Port Coquitlam, and Surrey.
Secondary Impact: Delta, New Westminster, Mission, Chilliwack, and Richmond.
• There are negative effects (nuisance, property crime, noise, increased traffic, etc.) on properties located in the immediate vicinity of many stations.
• The decision of which particular investment properties to acquire within a region still requires extensive analysis of the fundamentals of the specific property.
New in the 2011 Version:
Information on the Evergreen Line, UBC Line, and Surrey Light Rail Transit. Updated information on all the Gateway Projects and other notable construction projects in the Lower Mainland, such as: The Golden Ears Bridge, the widening of Highway 1 in Abbotsford, and the construction of a new Patullo Bridge.
Download the full report here.