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Media Coverage
National Post, June 20, 2008 Everybody's Horsing Around Developments are all about recreation in B. C. Please scroll down for the text version
Everybody's Horsing Around Developments are all about recreation in B. C. By Robert Remington A typical day at the office for Dave Chutter involves taking a call on his cellphone while on horseback. "It's a little windy," he says, as his horse neighs in the background. "Can you call me back in an hour?" Mr. Chutter was moving cattle at his ranch near Merritt, B. C., when I phoned to ask about his transformation from rancher to real estate developer. Last month, Mr. Chutter began marketing 87 one-acre homesites on his 3,600-acre working ranch in the Nicola Valley to horse lovers. Mr. Chutter's Ranchland Estates (ranchlandlots.com) is an equestrian-themed real estate development that offers horse owners their private Ponderosa where they can keep up to two horses and have access to 900 acres of the ranch and 12,000 acres of adjacent open public land for riding. Just three hours from downtown Vancouver, lots on the ranch range from $325,000 to $600,000, with a full equestrian centre in the works. For Mr. Chutter, 53, the development will keep the ranch afloat and give the Lower Mainland's 20,000 horses and their riders space to roam in the dry, semi-arid grasslands with a second home or retirement property for both them and their horses. "I've been thinking about this for 10 years," says Mr. Chutter, a former MLA for the area. "Ranching is a pretty poor business with low returns and rising costs. I was at a point in my life where I was frustrated with working hard over many years and not getting ahead." Ranchland Estates is a unique part of a resort development boom that flies in the face of today's North American real estate market slowdown. The current estimated value of planned resort development in the province is an astounding $10.6-billion, according to B. C. Tourism, a figure that shows remarkable confidence in the region's recreational and retirement potential. "B. C. is in a special position in North America," says James Askew, president of rareEarth Marketing, whose developments include the new Hummingbird Beach Resort on Mara Lake in the Shuswaps (hummingbirdresort.ca). "It is a true and authentic market that is much less based on speculative investment. It's not a case of 'build it and they will come.' Buyers have been flocking to the area for some time and developers are simply filling the needs of the market-place. You've got Vancouver on the west and Alberta on the east hitting the Okanagan from both sides, pushing up demand. There are just so many areas -- Vancouver Island, Revelstoke, Kamloops, the cottage country of the Shuswaps --buyers have been driving demand here for years." Development is taking place province-wide, with some of the major projects including a $1-billion redevelopment of Fairmont Hot Springs in the Columbia Valley, the $1.5-billion Lakestone Resort Development in the Okanagan, the $500-million Tobiano Golf Resort at Kamloops and Vancouver Island's $1.2-billion Bear Mountain and $650-million Wyndansea Oceanfront Golf Resort. A recreational property report by Re/Max last week found a "substantial increase" in recreational properties listed for sale nationwide, combined with "fewer buyers overall." After years of unprecedented growth, it characterized the recreational market as "balanced." In the Okanagan Valley, Re/Max says the recreational property market has reached a plateau. "Economic concerns, based on the housing market meltdown south of the border, have dampened sales activity. An influx of new listings in recent months has held price appreciation in check. Bargains in Arizona and California are also splitting sales in the Okanagan, with short-term investment dollars headed to America." However, Leona Snider, president and CEO of The Rise, a golf resort in Vernon, remains bullish on British Columbia, and especially the Okanagan. "People may be buying in Arizona, but there are also those like me who don't like borders and I especially don't like that border [the Canadian/U. S. border]," says Ms. Snider. Security and issues such as health care, she says, will keep Canada popular with Canadians. The Rise (therise.com) - along with a private beach club, winery, vineyard and spectacular real estate on 735 acres -- offers a Fred Couples signature golf course (he played the course this week in advance of today's public opening). Vernon is a half hour from the Kelowna International Airport, which makes getting in and out very easy. Home sites at The Rise vary by neighbourhood, but this year's release will include three new areas around the expanded vineyard. For those homes backing on to the course, setbacks are 200 feet from tees and 300 feet from greens, among the highest in the industry. Current site prices start at $249,900 and homes at $739,999. At the south end of the lake, Robin Agur of Location West Investment Group in Penticton, is optimistic as well. "Our market has been holding strong," says Mr. Agur, whose latest development is the lakefront Reflection Point on Osoyoos Lake. Sales figures from the South Okanagan Real Estate Board show sales down only slightly but prices up 10%, Mr. Agur says. "Last year, we had an extraordinary number of Alberta buyers. It was right off the charts. There is a bit of a slowdown this year to date but it is still wonderful to us. The glass is certainly half full as far as the South Okanagan is concerned." Four years ago, in the Kootenays, a couple of friends in Nelson quickly realized the area's potential, and bought a 450-acre tract to create a development that would include hiking and biking trails, a community beach, marina and yacht club, allowing buyers to utilize every inch from water to mountain, but to only develop 260 of the 450 acres, reserving the balance for green space. Kootenay Lake Village has fully serviced lots (31 waterfront and up to 100 upland), at prices ranging from $130,000 for upland and $395,000 for waterfront. Jon Long, an extreme-sport filmmaker, and his partner, Oliver Berkeley, also envision a village centre or landscaped park enhancing their development. Adrian Block of the Rykon Group says a confluence of factors and events are working in B. C.'s favour. "First of all, B. C. developers have been on a roll now for a number of years and one of the natural things that happens when developers feel good about things is that they want to do developments that are more fun. There's a natural inclination right now to do fun, creative developments," Mr. Block says. "The second part of the equation is the Baby Boomers and demographics in general. And, partially, I think it's the 2010 Olympics giving us great spirit right now. There is a lot of offshore investment making it seem like there's an unending flow of money into the region. It's low interest rates. It is a confluence of events that is helping B. C. for some reason and the Okanagan in particular." Despite high fuel prices, Mr. Block says his Manteo Lakefront Resort (manteo.com) in Kelowna is on track for a banner year. "We're 90% booked. High fuel prices will have little or no impact on us. You can still drive to Kelowna from Vancouver for $100. That's pretty cheap for a family of four compared to flying to California." Developers are indeed taking note of the impact on the environment and costs. A half hour southeast of Merritt is the 91-acre Marshall Springs Resort & Spa (marshallsprings.com), a 178-lot luxury log-home development that positions itself as environmentally friendly in two ways: Its location closer to the Lower Mainland than the Okanagan, making for a less fuel-consumptive drive, and its various green building features including geothermal heating and solar panels. It also has a spa, pools, hot springs, fitness centre, equestrian centre, bistro restaurant, conference spaces, an alpine lodge and outdoor gathering spaces. The first occupancies in this six-phase development are expected by the end of this year, but current buyers will get three years in which to begin construction. Marshall Springs is both developer and builder -- it will outfit the log homes down to the steak knives, so buyers can release the homes a the rental pool when they have to giddyup back to the city. The fully serviced lots (1/6 to 1/3 acre) start at $195,900, and the turnkey homes will range from $275,000 to $499,000. Patrick von Pander, Marshall Springs's director of marketing and sales, says that "after the 'practice retirement crowd' -- those usually three, five, seven or even 10 years from retirement and ready to try on some retirement-style activities for size and fit, but still too vibrant and active to settle down quite yet -- are affluent young families wanting to enjoy the outdoors while raising their children with an appreciation and exposure to nature and the wilderness." According to the Re/Max report, younger buyers were a factor in 40% of recreational markets surveyed, helping drive the continued interest in recreational markets. "Baby Boomers are clearly not the only purchasers that appreciate the recreational lifestyle," says Elton Ash, regional executive vice-president of Re/Max of Western Canada. "Generation X is quickly becoming a force in the marketplace, spurring demand for condominium product on ski hills, oceanfront properties in good surf locales, and water frontage on trendy lakes with celebrity residents." Mr. Askew agrees. While Humming-bird Beach Resort ( hummingbirdresort.ca) has several lakefront properties priced at more than $1-million, it is also offering non-lakefront cottages with beach access priced in the $400,000 to $500,000 range that caters to a younger demographic. "In the family market, aged 35 to 50 with kids, there is a sense of urgency to want to have their kids enjoy that lifestyle and quality of life. They want to buy but affordability is an issue." Mr. Block, too, may reach a younger demographic with INvue, a luxury condominium tower in Kelowna. Located near the amenities of a mall but overlooking an orchard with views of Lake Okanagan from the third floor up, Mr. Agur says it should appeal to those who want a resort lifestyle but can't attain waterfront. According to the Re/Max report, "Prime waterfront properties, while more plentiful than in years past, will still command top dollar." Re/Max says the influx of new listings has yet to translate into downward pressure on recreational property prices. Mr. Agur says water, of which there is plenty in B. C., will continue to drive the recreational and resort market in the province. "Lots of recreational buyers are going to the United States and taking advantage of prices in the Sun Belt, but that only satisfies the winter need. We are the summer playground. They love us and keep coming back. We are not going away. We may slow down a bit, but water's still the prime thing."
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