SurreySurrey www.reincanada.com $9.99 Released: February 2015 © The Real Estate Investment Network Ltd. 6 – 27250 58 Cr Langley, BC V4W 3W7 Tel (604) 856-2825 Fax (604) 856-0091 E-Mail: [email protected] Web Page: www.reincanada.com Cover Photo Provided By: Mike (SqueakyMarmot) Important Disclaimer: This Report, or any seminars or updates given in relation thereto, is sold, or otherwise provided, on the understanding that The Real Estate Investment Network Ltd and their instructors, is not responsible for any results or results of any actions taken in reliance upon any information contained in this report, or conveyed by way of the said seminars, nor for any errors contained therein or presented thereat or omissions in relation thereto. It is further understood that the said authors and instructors do not purport to render legal, accounting, tax, investment, financial planning or other professional advice. 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No part of this Report may be reproduced, or stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher. Image Provided by: waferboard education. Teachers and professors make up 2.3% of Economy Surrey’s labour force and post-secondary institutions like Kwantlen Polytechnic University and the expansion of Nestled between the neighbouring cities of Delta and Simon Fraser University (SFU) have only helped foster Langley, Surrey borders onto the United States in the local growth. Enrollment continues to increase across all South and by the Fraser River in the North. Surrey is education institutes, from primary and secondary all the comprised of the six communities of Guildford, Cloverdale, way to the university level3. As of the Fall of 2012, Newton, Fleetwood, Whalley, and South Surrey and has enrollment at SFU’s Surrey campus was 11,2794. spent recent years diversifying its economy. As one of the fastest growing cities in the province, Surrey has experienced a tremendous population increase over the past ten years. Currently recognized as the 12th largest Outlook city in Canada, Surrey is expected to overtake Vancouver’s title as the largest city in BC in the next Surrey’s forward-thinking economic development team is decade. working on the next phase of its Build Surrey program, with the goal of attracting more businesses and providing Surrey’s excellent transportation links and amount of a high quality of life for residents. Phase one of the project available land have led the city to become a major is already completed (including the relocation of the RCMP industrial and manufacturing centre for the province. The E-Division building) – and was an astonishing success. city currently has 8 business parks and 3,000 acres of The second phase of the project will include a Performing industrial lands1. Surrey is the largest city in the Metro Arts Centre and Contemporary Arts Space and Gallery, Vancouver region and holds approximately 46% of Metro the construction of the East Clayton Recreation Centre, Vancouver’s total vacant industrial land. This sector has and an Athletic Park in Newton. Thousands of jobs are had a multiplier effect on the local economy in addition to being created in Surrey, with over 2,000 new businesses providing 24,000 jobs locally2. launching in the city each year and 800 new residents calling the city home every month5. Another economic stabilizer is the presence of the RCMP E- Division, which was the consolidation of existing RCMP One of the benchmarks that will propel Surrey into a major headquarters throughout Metro Vancouver into one city is the Surrey City Centre. The ultimate goal is for City headquarters on Green Timbers Way in Surrey in 2012. Centre to be home to a variety of high density commercial, The 76,162 square-metre building holds offices for over office, institutional, and residential developments with a 2,700 E Division Headquarters personnel. The wide range of community and entertainment facilities. The headquarters will have a major economic impact on Surrey city is working hard on this project with the creation of a as many personnel relocate to be closer to their place of new urban centre called the Civic Centre which includes a work. Those who work at the building now eat and shop in community plaza, a new regional library, and City Hall. the community, further supporting the Surrey economy. The entire project is expected to be completed by 2016. The city anticipates that by 2031 the number of people Surrey is also home to numerous post-secondary employed in Surrey City Centre will rise to 36,000 and the institutions, offering a continuous supply of renters and number of residents living in the area will increase to contributing to the economic diversity of the city. 65,000 6 . One has only to look at the major projects that Post-secondary institutions also act as an economic will be completed in the next couple of years to see the stabilizer for communities as in both good and bad potential this area holds for investors. economic times people continue strive for higher High levels of immigration benefit investors, as those new Demographics to a country tend to rent for a few years before setting down permanent roots and purchasing a property. Population Growth However, it will become doubly important for landlords to According to the last Federal Census (2011), the perform their due diligence and get to know the population of the City of Surrey was 468,251, an increase demographics of their preferred investment area. For of 18.6% from the 2006 Census7. In comparison, during example, investors focusing on Newton should know the the same time period (2006-2011), the Province of British area is predominantly South Asian in ethnicity because of Columbia recorded a growth of 7% and the Greater the proximity to the Guru Nanak Sikh Temple while Vancouver Regional District (GVRD) experienced an Guildford is home to a significant Filipino community9. increase of 9.3%8. As of 2013, Surrey’s population was Your property should match the needs of your target estimated to be 472,000, accounting for approximately market. 18.7% of Metro Vancouver’s population. Surrey is one of the largest cities in the province, currently only second to Median Age Vancouver. With an annual growth rate of 10,000 people, As of the 2011 Federal Census, the median age of Surrey Surrey is projected to eventually surpass Vancouver’s residents is 37.5, lower than the median age of the growth to become the largest city in the province. province at 41.910. Surrey’s median age is pushed down Source: City of Surrey – Business Economic Development As the following table demonstrates, Surrey’s population by the city’s high percentage of children up to 19 years. A projections show an increase of 250,000 people over the young population means good things for a city: there are next three decades. It is estimated that 1 in every 5 more services geared to the young and young families, residents of Metro Vancouver will be a resident of Surrey. which attracts even more young families to the area. Younger age groups have more movement in the housing This is fantastic news for investors. The frenzy of sector, meaning they move in and out of homes – renting, employment opportunities has and will continue to draw buying, and selling – as their life stages change. They are people to the area, people who need a place to live. In more apt to rent, a great thing for investors, and the buying turn, housing values and rents will continue to climb. and selling usually means a stimulated housing market. Working age residents create more money in income Immigration taxes and younger people often consume more than older As of 2011, Surrey’s immigrant population was sitting at cohorts; the purchase of furniture, vehicles, electronics, 187,845, with 34,880 residents recent immigrants more food, eating out etc. means more local economic declaring they had moved to the city between 2006 and stimulation. 2011. Surrey’s immigrant population is currently the fastest -growing in Metro Vancouver and is expected to continue its rapid growth over the next two decades. The number of Housing residents claiming ‘visible minority’ is currently sitting at 46%, but this is expected to top 50% by the 2016 census. Rental Market Activity That means non-Caucasians will form a ‘visible majority’ in Surrey’s employment growth continues to attract Surrey, as has already happened in Vancouver, Burnaby, newcomers to the city, increasing demand for rental units and Richmond. in the city. With more people than ever looking for housing accommodations, vacancy rates have dropped, causing commanding some Surrey’s highest rents. The challenge, rental rates to rise dramatically over the last several years. though, is that the market can become soft for this type of While CMHC provides a good platform for comparing data housing, particularly when market conditions decrease the across markets, it only compares apartment rent and so margins between owning a home and renting.