PEI real estate values increase rather predictably from year to year with one exception...Oceanfront. The past five years have seen a steady, healthy increase in the price of waterfront properties on the Island. As most of the Eastern Seaboard has been bought up and bid up, more individuals have come to realize that true value lies on the little emerald island. Even with the increase in value, oceanfront properties are still a bargain when compared to any other locale on the Atlantic coast line. Moreover, the season is a minimum of six month long (May to Oct) with mild temperate weather that offsets more expensive acquisitions south of the border where the summer season is somewhat less attractive. As the trend continues, and with increasing interest in Island recreational properties, the market prices are not likely to go in any direction but upwards.
As a further attraction, there is still land available for development on PEI. Having said that, you need to understand that there is legislation in place to protect the Island from unscrupulous developers looking to make a quick dollar at the expense of locals and the environment, but this legislation does not impede properly conceived and managed projects. We have enjoyed much success over the past few years with projects like, Sunset Dunes, Granville on the Water, and Sunbury Coves. All the while, our partners in these projects have enjoyed financial success and the satisfaction of watching their creative endeavours take form.
What about the residential housing market; slow and steady is the answer. Average property increases in Summerside range around the 3% - 4% mark per year and Charlottetown's would be comparable if not somewhat higher. The key to a residential market boom is apparent when we view Alberta over the last couple of years. Economic development equates to more demand for housing by migrating workers which drive prices upwards. The likelihood of finding oil in PEI is not that great. However the principle involved in generating the wealth from the market would be similar...jobs.
In a small locale like Summerside the creation of 500 jobs would be front page news for some time, where as in Toronto you may get a foot note on page 53. When companies move in, and they have, they bring with them a core of personnel to ensure a smooth start up. In time some stay, while others return to the parent company. These events can be traced in the local
PEI real estate markets as they correlate with increases in new construction and real estate sells to accommodate the incoming work force. Similar to Alberta, but on a smaller scale of course.
With the shrinkage of the global, advents in technology and the strategic location of Summerside with sea port, air port and road network, some have opted out of paying huge overhead costs that accompany doing business in other parts of the world and settled here. There is a formula for profit in real estate investments that becomes apparent with this strategy.
If you were to buy up
PEI real estate at current market values in the Summerside area, and then relocate industries to the area creating new employment in the process. A percentage of the work force would be migrated in to provide required expertise. Since the market is fairly a tuned to demand, existing residential numbers would prove insufficient for any substantial inbound migration. You would in turn be well positioned to develop those assets and stand to make substantial gains, all be it dependent on the numbers involved in the migrating work force.
Robert Parker works with local PEI realtors to promote
PEI real estate and PEI as the place to relocate if you are looking for a quiet, sane lifestyle and economic stability
