Plans for LRT in Surrey have driven land speculation, causing a two-fold increase in land values, which is deterring developers, according to a developer from the Tien Sher Group of Companies.
Charan Sethi, president of Tien Sher, suggested in a recent interview with the Vancouver Courier that “land speculation over the past two years has driven the price too high for most multi-family developers.”
This is because residential land prices along the Surrey-Newton-Guildford LRT route have soared to between $4 million and $5 million per acre, as opposed to a city-wide average of $3.1 million per acre. This is also up from an average cost of $2 million per acre in 2016.
Sethi noted that the increase in land values and costs to purchase the land would limit the potential for significant redevelopment in places like Newton Town Centre, and it could also result in homes that are difficult for young families to afford.
“Prices are double what they were in 2016.”
These comments by Tien Sher are sure to disappoint many supporters of LRT in Surrey, who have claimed that the plans for street-level rail are better for “building communities” and that this takes priority over moving higher volumes of passengers.
Instead, rising land prices on the SNG LRT corridor are deterring developers and investors, and Surrey could end up with little redevelopment along an expensive LRT that attracts few new transit riders.
