LRT to boost property values
Early on in Ottawa the value of a property was at times based on its proximity to Parliament hill, but with new access provided by light rail transit (LRT) that could change.
On Wednesday, Stage 2 of LRT was passed by city council after just a few hours of debate.
This includes construction of an additional storage facility near Moodie Drive, as well as the following extensions:
• Confederation Line West: beyond Bayshore to Moodie Drive, and southwest to Algonquin College;
• Confederation Line East: beyond Place d’Orleans to Trim Road;
• Trillium Line extension south to Bowesville in Riverside South; and
• An Airport Rail Link from South Keys Station on the Trillium Line.
The added access from the entire LRT project could mean an increase in property values nearby.
“Definitely, I think accessibility is a big part of real estate. If there is something with easy access to transit certainly that will mean homes are more in demand and that normally means pricing goes up,” said Geoff Walker with Toscano/Walker Team.
A study conducted in 2013 by the Real Estate Investment Network indicated properties within a few blocks of a transit station could increase by as much as 20 per cent.
John Herbert with Greater Ottawa Home Builders’ Association agrees with that finding, adding that the price of undeveloped near transit stations will also rise in Ottawa as the city allows zoning for condominiums.
“They need the density there to get rider levels up to pay for the operation so… there are condos planned around all the LRT stations,” Herbert said.
The study added that neighbourhoods with dual access to transit stations and highways will see the greatest increase. These include areas such as Downtown, Centretown, Hintonburg, and Sandy Hill, to name a few.
Herbert said on paper the increase seems very likely, but that it could takes years to see results and will depend upon the consumer.