Sunshine Coast - Land Sales (2014 & Historical)

[Skook]

January 1, 2013 update:

In December, there were only 4 vacant land sales with 3 of these sales occurring in the District of Sechelt. Of these DOS sales, the largest involved 173 acres in East Porpoise Bay followed by two 4.9 acre parcels in West Sechelt. The remaining 1 sale involved a 5.0 acre parcel in Roberts Creek.

Sellers are taking a substantial discount from the original asking price to move these lands. In December, the median discount was -22.6% and that figure would have been higher if the 173 acre sale were removed from the equation.

As I’ve mentioned before, land sales on the Sunshine Coast have collapsed and 2013 continued the downward trend dropping -16.9% from 2012. According to local Prudential Sussex Realtor Kenan MacKenzie, by the end of November there was a 90-month supply of vacant land listings on the SC - a staggering 7.5 years’ worth based on 2013’s sales pace.

I honestly can’t see land sales dropping further in 2014. With list prices dropping coupled with our falling Canadian dollar, there has to be a reversal but it may only involve larger parcels. I think subdivision lots will continue to suffer which does not bode well for developments like Parkland in Gibsons. Subdivision developers on the SC are caught between a rock and a hard place with neither new home builds nor vacant lots holding much attraction. In 2014, I believe buyers will continue to pursue home re-sale bargains.