When Greybrook originally invested in our Hamilton site with Castlepoint Development Group and Andrin Homes, serviced lot values in the area were a fraction of their current value. Serviced lots are construction-ready parcels of land that have been rezoned, have all key approvals in place (prior to starting house construction) and are serviced with access to roads and utilities. According to MCAP, one of Canada’s largest independent mortgage financing companies, serviced lot values in the fall of 2015 averaged between $5,500-$5,700 for townhomes, $5,200-$5,400 for 30’-36’ lots, and $5,100-$5,300 for 40’ lots.
As Greybrook, together with its development partners, continues the land approval process, while the City of Hamilton is advancing the Elfrida Growth Area Study and the Secondary Plan for the area, ongoing supply constraints, combined with strong demand for all forms of housing, have resulted in significant escalations in land values. As of spring 2017, townhome lots in Hamilton were valued between $10,000-$10,500, with 30’-36’ and 40’ lots averaging $8,000-$9,000. This is a significant increase of 92-94% for townhome lots, 54-66% for 30’-36’ lots and 57-70% for 40’ lots.
As active asset managers, Greybrook regularly monitors land values throughout the development process as an indicator of the continued value creation on the property. We are pleased to report such a meaningful increase in lot prices for the region and will continue to share relevant analysis as it becomes available.