By Jennifer Kennedy
Developers may be rushing to cash in on Ottawa’s expanding condominium market, but Centretown is running out of available land, says a local housing analyst.
“Demand hasn’t been this strong in the last 20 years, even in downtown,” says Brian Card, president of The Corporate Research Group, a private sector research company that specializes in housing developments. The highest demand in the region will be in Centretown.
But bull or bear market, “the difficult thing is to try and find good land,” says Card.
In total, there are fewer than 10 sites — most of which are expensive parking lots — appropriate for building condomi-niums in Centretown, he says.
Without land, developers can’t match the increasing demand. But other areas of the city with free space, such as the Byward Market, will be reeling in bids for new condo developments.
But Alain Miguelez, senior market analyst with the Canada Housing and Mortgage Corp., says there are more sites in Centretown than people think — it’s just that finding them requires extra work.
“It takes a little bit more effort to get some sites,” says Miguelez. Buildings may have to be torn down, he says, or zoning changes may be necessary. In some cases, assessing sites for chemical contamination may also be needed. Miguelez estimates there are five developers competing for land in Centretown, but he expects more will enter the condominium market next year as it heats up.
“Watch out for things next year,” he says. “We think the condo market is about to explode.”
The increased demand for downtown condominums is partly in reaction to the rising house prices in the suburbs and partly because people want to live conveniently in the heart of the action.
Neil Malhotra, vice-president of Claridge Homes, one of Ottawa’s largest developers, agrees that finding land in Centretown can be a hassle.
Claridge Homes is now looking at three or four Centretown sites on which to build condos, says Malhotra, although he won’t say where. Negotiations for these sites may continue for another year.
The whole process of developing in Centretown is complicated further, he says, because “a great deal of our city is heritage-protected.”
While Malhotra says he respects the need for Ottawa to maintain heritage buildings, he also thinks some of the heritage designations are “strange and quirky.”
“It’s another cause of the land shortage,” he says.
The Centretown heritage conservation district — which runs approximately from Kent to Elgin Street and Catherine to Lisgar Street — contains about 500 buildings that are designated heritage, says Stuart Lazear, senior heritage planner with the city.
There are also other heritage-designated buildings in Centretown outside the district.
But Lazear doesn’t agree that heritage concerns may slow condo development in the area.
“In terms of developing within the district, it’s been nothing but a success,” says Lazear. “There are no obstacles in place.”