By Leah Murray

City lot development dependent on housing market conditions

Dec 8, 2017 | 3:39 PM

MEDICINE HAT – There’s been a large drop off in land sales for residential development in the past couple years in Medicine Hat.

Between 2012 and 2014, the city sold 85 lots a year on average for new home construction.

Between 2015 and 2016 that number dropped to an average of 33, with 2016 seeing only 25 lots sold. Because of that, sales expectations were adjusted for 2017 with a goal of 40 sales.

So far this year the city says 32 lots have sold in new areas like Ranchlands, Southlands and Saamis Heights. Four other properties have also been sold in the River Flats.

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City staff say the increase in sales shows an improvement in investor confidence in Medicine Mat.

Jane Zwicker, sales and marketing officer for the city, added future forecasts are also looking positive, which has them bumping up goals for 2018.

“Recently released CMHC forecasts for housing starts in 2018 suggest that there should be a slight increase in low density residential sales,” she explained. “So, we’re forecasting around 50 lots to be sold in 2018.”

The city will be moving forward with lot development for the Ranchlands ‘3C’ neighbourhood.

Zwicker said the plan is to start construction on the underground infrastructure in 2018 with those lots going up for sale sometime in 2019.

Planning is also underway for the future Riverwalk neighbourhood in Ranchlands, but construction on that community won’t start anytime soon. It has an estimated selling date of 2023.

The city is also continuing to plan Brier Run. The area around the Family Leisure Centre will feature single and multi-family homes along with a mix of neighbourhood commercial businesses. That community isn’t expected to hit the market until 2024.

Zwicker said those dates could also be pushed back depending on market conditions.

“We tend to shoot for two years worth of [lot] inventory,” she explained. “So, based on the last couple years we are currently over the target. So, we can’t set a date, but we’re just monitoring the market [to determine] when we will start construction.”

Zwicker said residential development is looking up for 2018, and the city already has a couple deals in place.

One will be the Laurel Gardens development in Southlands which will feature a multifamily development. The other is a neighbourhood commercial site to be developed in Ranchlands.