The economic outlook for
the real estate development
industry this year is fair to
good though there are
several major trouble areas,
according to the results of a
survey carried out by the
Urban Development In-
stitute Pacific Region.

UDI is composed _ of
virtually all major
developers and real estate
firms in British Columbia.

“About 80 per cent of our
members said they expect
their firm's level of activity
{io increase this year over
1979. That's a good sign,”
said UDI President David
Mooney.

He said that 30 per cent of
the organization’s members
rated the 1980 outlook for
the real estate development
industry as ‘good’, while 50
per cent rated the outlook
for business in general as
‘good’

“Condihuns appear to be
improving in the industry,”
said Mooney. “This is the

™

first survey of this type we
have done, but if we had
conducted one a year ago I
suspect the number who
expected 1979 to be a good
year would be less than 30
per cent. The fact that 80 per
cent of our members an-
ticipate a higher level of
activity this year ts another
indication.”

The outlook in regard to

specific types of develop-
ment vanes widely. For
example.

—over 50 per cent rated the
outlook for multiple family
housing starts as ‘poor and
another 30 per cent rated it
only ‘fair’.

—20 per cent rated the
outlook for new retail
building activity as ‘poor’, 60
per cent rated it ‘fair’ and 20
per cent as ‘good’.

—the outlook for single
family housing Starts was
rated ‘poor’ by 20 per cent,
‘fair’ by 5O per cent and
‘good’ by 30 per cent.

—the outlook for new in-

dustrial activity was rated
‘fair’ by 60 per cent, ‘good’
by 30 per cent and ‘poor’ by
10 per cent.

—new office building ac-
livity received the highest
‘good’ rating, 40 per cent,
while 60 per cent rated it
‘fair’.

“The most desperate area
ts in multiple family starts,
which includes’ con-
dominiums as well as rental
projects. Everyone knows
the rental accommodation
situation is very bad and
unless government in-
centives are re-introduced
quickly it is bound to get
much, much worse,”
Mooney said. “Al present
there is virtually no rental
accommodation being
built.”

He said that the Provincial
Government's current $200
million low interest rate
program has helped to some
degree but more,  par-
ticularly at the federal level,
needs to be done in order to

conomic outlook still ‘good’

spur construction of rental
accommodation.

New retail building ac-
tivity appears to be dropping
off, probably because the
market in this area is
reaching saturation.

What are the factors that
may inhibit the level of
activity in the industry this
year?

Number one, high interest
rates. A lack of markets is a
factor in some areas.
Municipal red tape is a real
concern and so, to a lesser
degree, is red tape at the
provincial and federal levels.
Increasing costs of labor and
materials are other
significant factors.

Of the firms participating
in the survey, 80 per cent
said they are currently in the
market to purchase land for
commercial-industrial use
and 60 per cent are looking
for land for residential use.

Mooney said the UDI
intends to conduct the
survey on an annual basis.

C15-Sunday News, March 23, 1980 —

A
FAMILIAR
LANDMARK...

--is the lighthouse of

_ Lighthouse Park in West
Van at Atkinson Point.
The lighthouse and the
park are visited year
round by residents and
tourists alike. The rocks
on the shore make an
ideal setting for
photographs. (Terry
Peters photo)

Dave Jenneson

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