Unease Leads to Falling Property Sales

One of Vancouver's top condo markets has slashed staff count

Unease is in the air, and the next few months look extremely challenging for people on edge about their employment and financial situation.

It was disconcerting to read the news that one of the biggest condo marketers in Vancouver cut 25 percent of its staff.

Rennie laid off 31 of its office staff, claiming geopolitics, economic factors and artificial intelligence for the drastic move.

"It was a necessary step in response to a changing market, but no less painful," the company said on LinkedIn.

The company's post added Rennie is reducing its head office staff count to 92 from 123 [with a total of 400 employees], and pleaded for anyone looking for people to consider its "thoughtful, talented contributors who helped shape our culture and our business."

Real estate sales have slowed in Vancouver, dropping 24 percent in April year on year, and it was reported the other day the valuations of pre-construction condos have fallen -- which means those who put down payments a year or two ago cannot get mortgages at the previous higher valuation, but the current one.

That will result in more people being unable to afford their condos and will have to sell at fire sale prices.

Then there's the Trump factor, with the American president's indiscriminate tariffs casting a chill on thoughts of making any kind of big ticket purchases from cars to property.

And there's also AI, which makes having humans doing the same work redundant and cost-saving. 

Which is perhaps why Rennie says in the post: "The shifts we are seeing in real estate aren't temporary, they are structural. And yesterday is never coming back."

Yikes.

Divided Over Chinatown's Revitalisation

Lions kick off "Light Up Chinatown" in Vancouver

Today was the start of the two-day "Light Up Chinatown", an initiative from the Vancouver Chinatown Foundation in a bid to revitalise the neighbourhood leading up to the Mid-Autumn Festival. The lions were out in force prancing on stage, while politicians trotted out, like BC Premier David Eby and Vancouver Mayor Ken Sim, encouraging people to come to the area more often.

Other entertainment on the main stage included girls performing traditional Chinese dances, singers exercising their vocal abilities, hip hop dancers strutting their stuff, and even magic tricks to impress the crowd. 

A Western-style bun stuffed with char siu 

And there was lots of food on offer, from bubble tea to poke bowls and burgers, to special collaborations like a European-style bun stuffed with char siu, and another group offering five grilled skewers from five different chefs paired with wines.

Interestingly, one of the sponsors of the event is Beedie Living, the developer of the controversial site 105 Keefer Street. Beedie plans to build condos on the vacant lot, which will be beyond the reach of the elderly residents in the area, and is right next to a monument commemorating the Chinese railway workers in the 1880s and the soldiers who fought in World War II. 

Several years ago many in Chinatown were against it when Beedie made its presentation at City Hall, but then earlier this year many people and businesses in the area did a 180-degree turn and fully supported the plan, believing construction is better than letting the site remain empty.

Those who still do not support the development and would rather social housing be built on the plot of land held their own event in an alleyway. They marked the first anniversary of the fire that destroyed Gain Wah, a legacy business in Chinatown that not only served cheap Chinese food, but also had inexpensive housing upstairs for seniors and restaurant staff.

Gain Wah Restaurant following the fire last year

This grassroots group held an event to bring attention to the issue of food insecurity in Chinatown, as it was not really a fundraiser for Gain Wah.

Nevertheless, it shows that not everyone in Chinatown is united behind one cause, that the differences in the community fall along political lines. Either one supports the corporate elites who believe money is going to revitalise the area, or grassroots, who are trying to help the residents in the area have a safe environment to live in and support local businesses to keep the ecosystem going.

One side has vastly more resources than the other, but the smaller group is scrappy and determined to continue voicing its opinions.

As someone watching on the sidelines, there's never a dull moment in Chinatown. 

105 Keefer Gets Development Approval

This vacant lot will have a nine-storey condo building

Six years after its proposal was rejected, developer Beedie Holdings Ltd's controversial plans to build a nine-storey building with luxury condos in Chinatown were approved this afternoon.

The decision on 105 Keefer Street by Vancouver's development permit board was unanimous -- but with some conditions, including adjustments to the building's facade, and improving the building's relationship to nearby "cultural significant" features, such as the Chinatown Memorial Monument, and the Dr Sun Yat-Sen Classical Chinese Garden.

Architect's rendering of 105 Keefer development

Rob Fiorvento, managing partner of Beedie, said the company was "obviously pleased" with the decision and "we look forward to working with city staff and community groups to move this project forward."

However, to say those who were vehemently opposed to the project were upset would be an understatement.

When the announcement was made, Melody Ma of #savechinatownyvr tweeted "The @cityofvancouver is on the wrong side of history".

Jade Ho is an organiser with the Vancouver Tenants Union that opposed the condo project, and said the decision marks a "singularly appalling moment" in a city that continues to prioritize "profit over people."

"The decision that they made today is going to exacerbate displacement and it's going to accelerate gentrification in a neighbourhood that is already increasingly unliveable for low-income seniors and residents," she said.

More than 140 people went to City Hall to voice their opposition to the project, a hearing that took three days to complete. Many complained the condo building's design was not cultural sensitive, that it was right next to a memorial square, and the neighbourhood's residents would be unable to afford any of the units there.

Many elderly seniors strongly opposed the project

However, several business groups in Chinatown supported the development of the land, now a parking lot, a move that has polarised the neighbourhood, with groups like Vancouver Chinatown Foundation and Vancouver Chinatown Business Improvement Association, Chinese Cultural Centre of Greater Vancouver, and Chinese Benevolent Association of Vancouver for the condo development.

Ironically back in 2017 these groups opposed Beedie's proposal, but now -- despite no changes to the plans -- they have changed their minds and are keen for any kind of development in the belief that it will help revitalise the neighbourhood.

But while the city has approved this project in the hopes of increasing its housing stock, it could be years before these condos will be built -- if ever. There are still many hurdles ahead, not to mention getting enough capital to start digging up the parking lot. 

Mayor Ken Sim and his ABC Vancouver majority in City Hall are sympathetic to developers and 105 Keefer is proof of it, along with other concessions to these firms in the hopes that they will build more housing. But more checks and balances need to be made to ensure completion of these buildings otherwise nothing will have been achieved.

Controversial Development Yet to be Decided

The condo project is right next to Chinatown Memorial Plaza

The fate of the plot of plot of land in Vancouver's Chinatown that has divided the neighbourhood, will not be known until June 12.

On Monday evening, 70 people signed up to speak for or against the proposal on 105 Keefer Street to build 111 luxury condos on nine floors right next to the Chinatown Memorial Plaza. Some 20 still have yet to give their say.

Most of the people who spoke in the City of Vancouver development permit board hearing that lasted almost two hours beyond the scheduled time, were against the project.

Seniors want affordable housing on that land

Beedie Holdings bought the property, currently a parking lot, 10 years ago. Twice it went to the permit board hearing, the first time its plans for the building were criticised for being too tall, and then in 2017 it was shorter, but was resoundingly rejected.

Now it is back to the permit hearing board again -- with no changes to the plans. 

Seven Chinatown groups are for the project including the Chinatown Business Improvement Association, saying post-Covid it is time to get any kind of economic stimulation in the neighbourhood. They believe having these condos will bring at least 111 more people into the area and patronising the businesses in the area.

However, those against complained the condos should not be for the wealthy but social housing for the elderly, as inflation has made it harder for them to afford rent and food. Meanwhile others claimed the design was not culturally appropriate for the area, as it is near the Chinese Cultural Centre and Dr Sun Yat-Sen Classical Chinese Garden.

Lily Tang, 80, arrived in Chinatown in 1968, and has lived in her social housing building for about 25 years. She says life in Canada is becoming more unaffordable.

The fate of the land to be decided on June 12

"We are not against constructing this building, but it's looking at our needs," Tang said days before the hearing. "The last several years the government hasn't built much housing for us. There used to be a bit, but now governments just give lip service."

Russell Chiong, president of Chinatown Today agrees. 

"There is no affordable or seniors housing and no safeguards against gentrification. It would just do irreversible damage to the sense of place and community vibrancy of Chinatown," he said of the proposal.

Even people who lived in neighbourhood who are not Chinese also told the hearing they did not want to see luxury condos built there, and felt strongly for the unique character of the area to remain.

Meanwhile, Rob Fiorvento, managing partner at Beedie, said last week that the development will bring much needed mixed-use housing to the area, which is aligned with the city's goal of making the historic community prosperous again.

However, Fred Mah, founder of the Chinese Community Centre and an elder activist for Chinatown, said at the hearing he met with Beedie, but they agreed to disagree. They could not come to any compromise and so he does not support the proposal, saying it is not culturally appropriate nor does it cater to seniors.

But now that the City of Vancouver is pushing for market housing as a priority, it may be that the Beedie plan will be given the green light. It's also interesting that people who were against the project in 2017 have changed their minds even though the plan hasn't been modified in the last five years...

Developer Proposes Luxury Condos in Chinatown

The empty site sits next to Chinatown Memorial Plaza (front)

Vancouver's Chinatown is fiercely divided over what should be built on 105 Keefer Street, a plot of land that was a parking lot for many years. It is next to Chinatown Memorial Plaza, which pays tribute to the Chinese workers who built the Canadian Pacific Railway, and Chinese-Canadian soldiers who fought for Canada in World War II.

The plot of land was bought by developer Beedie Holdings in 2013 and the following year its subsidiary Beedie Living proposed a tall building of luxury condos which would dwarf the memorial next to it, and the Dr Sun Yat-Sen Classical Chinese Garden nearby.

The building plan will be discussed on Monday

Three years later the Chinatown community joined together to oppose the mixed-use, slightly shorter building proposal, even though it included a seniors centre and underground parking. After listening to hours of comments from the public, the plan was resoundingly rejected by city hall.

On Monday a revised proposal is back in front of city hall, but this time the community is divided into two camps, one all for it, the other against.

Those for it, including seven business organisations, say now that the Covid-19 pandemic is over, Chinatown is barely hanging on economically, and believe construction of these 111 luxury condo units will help revive the neighbourhood. 

Some of the groups for the plan include the Chinatown Business Improvement Association, Chinese Benevolent Association of Vancouver, Chinese Freemasons of Vancouver, Chinese Cultural Center of Greater Vancouver, and Vancouver Chinatown Foundation.

However, those who oppose it say luxury condos don't fit into this area, where most of the residents are seniors living on pensions. They would like to see social housing on the site and culturally appropriate programming as well as architecture to integrate the building into the neighbourhood.

Seniors oppose the latest proposal from Beedie

One senior interviewed felt the voices of the elderly were being ignored and instead the government was more interested in development, leaving these vulnerable people behind. They are barely subsisting as it is financially and feel the new condos will push them out. 

Meanwhile legacy businesses like Kent's Kitchen which offered cheap food, are closing, resulting in seniors becoming even more food insecure.

A few hundred people showed up at a rally on Thursday afternoon next to the site opposing the plan, while those for it believe people living in these luxury condos will patronise the area's businesses, thus keeping them afloat.

But who will want to live in a luxury condo in Chinatown which is right next to the Downtown Eastside? It's not exactly a desired location. Affordable housing would be a better solution, but perhaps Beedie's patience has worn out and wants to recoup its costs as soon as possible.