By Lauren MacGillivray
A hot housing market is brewing in Centretown. It’s a trend that Richard Lee, executive director of the Ottawa-Carleton Homebuilders Association, is calling an “exciting rejuvenation.”
Lee is referring to the mounting interest developers have in transforming old buildings into newer, trendier styles of living. He says a good example of this is the lofts that Domicile Developments Inc. are building in Centretown on the former site of a government building.
“The lofts are a good topic because they encourage revitalization of property,” he says.
Lee says other old buildings are now being considered.
“Domicile’s picking up old buildings nobody would’ve taken a second look at five years ago . . . it’s a niche market.”
And it’s not just Domicile cashing in. Others, like Claridge Homes Corp., are property-hunting.
“Old schools, beer stores . . every single piece of crappy property . . . There’s not a piece of property in Centretown they [Domicile and Claridge] haven’t looked at,” says Lee.
Besides this specialty housing, regular houses are also selling quickly.
Lee says the housing industry bottomed out in 1995, but has been climbing ever since due to an influx of high tech employees moving into the area, as well as a better overall economy.
Lee adds people have simply been waiting for the right time to buy.
“Buyers have put it off for years,” he says. “People are now secure in their jobs.”
Comparing the 2,692 homes sold last October with the 3,338 homes sold this October, Lee says the housing market is up 24 per cent. “They’re being gobbled up left, right and centre.”
Despite an increase in housing demand, prices have only risen slightly.
Lee says it’s because competition in the housing market is still fierce.
Another economic benefit for buyers is that there are no housing permit fees in Centretown, which can save a buyer $1,000, he says.
Still under construction in an old government building from the early 1900s, 39 of the 40 lofts on the corner of Argyle Street and Bank Street have sold quickly.
Domicile president John Doran says his company has another possible project planned for the parking lot space on Cooper Street.
New apartment condominiums will be a venture Doran says was spurred by the interest in the lofts and their location.
Doran attributes this demand to an increasing trend.
“It’s a lifestyle issue,” he says. “These are people who want to walk to work and be close to restaurants, theatre.
Claridge Homes Corp., which also builds in the Centretown area, is starting to realize the popularity of this new market.
General Manager Paul Rothwell says the housing market has been improving especially in the last two years.
Claridge is now finishing a couple of projects, including a three-story townhouse project on Cooper Street.
But he admits Claridge will look into what Domicile has been doing – renovating old buildings.
“I think we’re going to have to look at how to fit into existing structures.”
Rothwell explains his company looked into this idea before, but had different priorities at the time.
Now, things seem to look a little different.
Mike Egan, who works for RE/MAX and who has spent 25 years in the housing business, agrees there is more buyer confidence, as well as interest in “specialty” housing in the downtown area.
Egan adds people are willing to pay more to get what they want.
“There’s a low unemployment rate and a low vacancy rate,” he explains.
He adds the 1994 government cutbacks hurt buyer confidence, but now things look better.
As for the housing market in the years to come, Egan states, “I think it’s going to be a very good year next year and prices are going to go up.”