Ring road, transit improvements will drive up home prices on Calgary’s fringes
Mario Toneguzzi, Calgary Herald Published: Wednesday, May 27, 2009
CALGARY – House prices in select Calgary neighbourhoods, feeling the impact of upcoming transportation improvements, will get a 10 per cent to 20 per cent premium over and above what the rest of the city’s market gets in the coming years.
The Real Estate Investment Network, in a report released today called The Calgary Transportation Effect, said transportation is one of the 12 key fundamentals that drive real estate values up or down. This report focuses on how the completion of the Ring Road and the expansion of the C-Train will improve accessibility to the downtown core, which in turn will raise the value of real estate that is in proximity to these transportation improvements.
“Our tax dollars are being spent; this is an opportunity for average Calgarians to profit from those dollars,” said Don Campbell, the report’s lead author and president of the REIN. “When people look for a property to purchase — be it their primary residence or an investment property — they take into consideration affordability, commute times and commute costs.
“If you can reduce commute and travel times to and from an area, you make that area much more desirable as a place to live, and thus an increase in demand occurs.” The report said there are three Tiers of Impact that will take place in the Calgary region.
The first tier, which will see the most positive effects from the combined transportation improvements, include Saddle Ridge, Martindale, Falconridge, Taradale, Castleridge, Rocky Ridge, Tuscany, Scenic Acres, Ranchlands, Silver Springs and Hawkwood.
The second tier, which will also feel positive impacts, include Coral Springs, Temple, Monterey Park, Pineridge, Abbeydale, Applewood Park, Marlborough Park, Penbrook Meadows, Bowness, Greenwood, Valley Ridge, Chapparal, McKenzie Lake and Sundance.
Third tier regions will feel the ripple effect outward from the main impact areas – and these include Cochrane, Balzac and Airdrie, as well as new developments near the Ring Road.
The report said that when the Ring Road and the new LRT stations are completed, communities within an 800-metre radius of these transportation improvements can anticipate a 10 per cent to 20 per cent increase in their property values. The biggest effect will be felt in older and more established neighbourhoods.
“Gone are the days when you could get downtown from anywhere in Calgary in under half an hour. Accessibility to highways and the LRT is now a top priority for home buyers and renters,” said Campbell. “These transportation improvements will unleash the inherent value in these markets, such that in the future these areas will outperform the rest. If the market goes up everywhere, these areas will increase by about 10 per cent to 20 per cent more. If the values everywhere drop, these will drop by 10 per cent to 20 per cent less.”
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