In desirable cities like Vancouver, streets are paved with gold.
Homes are worth a fortune, and millions of dollars more can be made with just a change in the zoning of a property.
Simply put, a lot that is rezoned for greater height and density increases in value.
That is what is called land lift.
Some say rezoning is like printing money.
Listings on a short street in East Vancouver near the Joyce-Collingwood Station may provide a good example.
In 2016, the city approved a precinct plan to increase heights and density within two blocks of the transit hub.
The area is bisected by the SkyTrain guideway. It is bounded by Wellington Avenue on the north, Kingsway Avenue on the south, Rupert Street to the west, and Ann Street to the east.
One of the streets covered by the plan is Payne Street.
Now, single-family-home lots on this street are being sold for up to more than four times their assessed values.
The reason is simple.
The Joyce-Collingwood Station Precinct Plan identifies Payne and Ann streets as a sub-area where mid-rise buildings will be allowed.
These buildings are four- to six-storey apartments, and townhouses.
The sub-area is located behind the new condo tower being developed by Westbank Corp. on Joyce Street across the SkyTrain station.
One example is 5005 Payne Street.
The single-family-home lot is listed by RE/MAX City Realty for $5,199,000.
The 2020 assessed value of the property is $1,243,900.
According to the online real-estate site Zealty.ca, the ratio of the asking price to assessed value is 4.18.
This makes 5005 Payne Street the number one property in Vancouver with the current highest ratio of asking price to assessed value, as of this post Sunday morning (January 1).
A property on Oak Street takes second place.
Interestingly, taking third to eighth places are other properties on Payne Street.
On third place is 5040 Payne Street. Its listing price is $4,978,500. The 2020 assessed value is $1,224,600.
According to Zealty.ca, the ratio of asking price to assessed value is 4.07.
Not surprisingly, the ninth highest ratio is found on Ann Street.
The property at 5131 Ann Street is selling for $3.5 million.
According to Zealty.ca, the asking price is 3.41 more than the property’s 2020 assessed value of $1,027,099.