Back in the days of the cowboy movies, the story lines would often have the Native scouts look to the ground for tracks, smell the ashes of a campfire or place their ears to the rails to listen for a train.While I don't know about hoof prints, or how to smell a campfire for clues, I do know that a train track is a solid piece of metal sometimes as long as 1000 miles. A train can weigh 2-12 million pounds. this creates a lot of kinetic energy that will be felt many miles in both directions. This kinetic energy can also reveal if a train is coming closer or going away from you. Trains, and mass transit can also signal what is going to happen in the next few years in Surrey Real Estate.
Don Campbell, Senior Analyst with the Real Estate Investment Network (REIN) recently outlined some of his findings to a group of savvy real estate specialists. His prediction is that condos and townhouses with a high walk-score were going to provide investors with the greatest return over the next five to seven years. His reasons take into account the Millennial cohort, which presently is the same size as the Baby Boomer cohort, but will be over taking the Baby Boomers in influence and size in three years.
Millennials have some key traits that are important to consider as they become more of a force in our community. Firstly,they are technologically driven. Nothing appeals to this cohort more than fast Wi-Fi. Next, they are very social and like to collaborate. Millennials also feel that work-life balance and flexibility are very important to their life style choices. They are not interested in owning a car and they are very adventurous. All of these elements add up to an inevitable demand on flexibile housing close to amenities and mass transit. In other words...the next boom generation will be wanting community style housing within walking distance to their social hubs and transportation.
Metro Vancouver's population is projected to grow by one million people over the next three decades. Much of this growth will take place in Surrey and surrounding municipalities. The Surrey Rapid Transit Study identified a shortlist of four rapid transit options, all of which would meet the long-term needs of this growing wave of population.
1. Bus Rapid Transit on Fraser Highway, King George and 104th Ave.
2. Light Rail Transit on Fraser Highway, King George and 104th.
3. Rapid Rail Transit on Fraser Highway, King George and 104th.
The City of Surrey likes the idea of Light Rail Transit and would like to see construction begin in the city centre to Newton along King George with further expansion south in the future.
The time is right for savvy investment buyers to take hold of the opportunity the Millennial cohort will create in Surrey. Already the statistics are showing growth and increasing demand in condos along transit corridors. The data analysis service called Snapstats identified the "Buyer's best bets" as being between 100 - 300K up to 2 bedroom units in East Newton and Whalley. Their 13 month graph also shows that in January prices have jumped, and the trend is continuing in February according to REALTOR reports.
Listen to the sound on the tracks. A train is coming...driven by the Millennials, and that train is Light Rail Transit into community complexes within walking distance of social amenities and shopping. Now is the time for Investment Buyers to act in order to capitalize on the best return on investment opportunity we have seen in condos and townhouses in the Surrey market.