Coquitlam real estate continues to spark interest, even during a softening market, with some properties listed for above their assessed value even though fewer buyers are able to scrape together mortgage payments as interest rates rise.
Many of these properties are targeted towards investors, who are interested in land assemblies and development in growing Burquitlam and Burke Mountain.
In the southwest side of the city, close to the Vancouver Golf Club, a 10,000 sq-ft. mansion situated on a large lot is awaiting a buyer with deep pockets.
Located at 730 Austin Ave., the home is described as "luxury living" on a lot almost 35,000 sq. ft. in size, which the listing states is suitable for subdivision.
The property, listed by Weny Wu of Royal Pacific Tri-Cities Realty, is for sale for nearly $6.9 million.
That's $3.2 million more than the $3.7 million assessed value of the property as of July 2021, according to BC Assessment.
What makes the property so valuable, according to the listing, is the potential for subdivision, with the property bordering both Austin Avenue and Sidney Street, according to the real estate description.
However, Zealty.ca notes that its zoning is RS-1, which in Coquitlam is low-density, single family zoning.
The home also has a beautiful lobby, five bedrooms, eight bathrooms, two kitchens, a media room, a hobby room and a bar plus lots of light and architectural details.
It looks over a gorgeous yard, surrounded by mature trees, according to a YouTube video made of the property.
Real estate for development selling for up to $8M in Coquitlam
It's not the only Coquitlam property marketed for its development potential.
A property located at 626 Elmwood, off North Road in southwest Coquitlam, is listed for $5 million and the 7,840 sq-ft. property is targeted toward investors for high density potential even though the eight-bedroom, six-bathroom home is only five years old.
The July 2021 property assessment is $2,283,000.
Across town in Burke Mountain, two lots are being marketed toward development.
At 1391 Kingston St., a home on a 1.19 acres is listed at $7,980,000, that's more than three times the July 2021 assessment of $2,192,000.
Another lot at 1277 Creekstone Terrace, assessed at $5,129,000, is listed for sale at $8.5 million. The lot size, according to the listing, is 43,560 sq. ft.
There is also an eight year old house with a legal suite on the property.
The current listed price is down from a selling price of $8.95 million when the Tri-City News wrote about the property in May.
At the time, a Vancouver realtor and commentator, who watches the market carefully, said building lots can't be compared to built homes.
Risk versus reward in land development
Steve Saretsky of Oakwyn Realty Ltd. said builders have to weigh risk with reward, and must consider construction costs in the analysis, including recent labour and supply chain challenges as well as rising interest rates.
"Buyer demand is pretty obviously slowing down. [Developers are thinking] 'What can I resell this thing for? What's the risk reward?' I think the risk right now is increasing. So the reward has to be a little bit more lucrative, in my opinion. So that's kind of how developers should be looking at it."
Meanwhile, the Austin Avenue property has been on rew.ca for 119 days, as of this publication (Oct. 20).
