Land Investment in Canada
Several clients have bought a property on which to build a second home; others have invested in a lot in order to speculate.
The evolution of prices
Intrawest has owned Tremblant Resort, in Eastern Canada, for 16 years and Whistler/Blackcomb Resort in Western Canada for more than 35 years.
According to a real estate agent in Whistler, a property in that region worth $100,000 ten years ago is now worth $1,000,000.
The lesson here is that nobody should wait for Intrawest’s projects to come to maturity before investing in the Tremblant region!
Mont-Tremblant is a sure investment!
The economic context
The continuous development of Tremblant Resort led to a real estate boom that quickly extended into neighbouring municipalities.
On the South side of the mountain, where the Resort stands, property prices have risen sharply in recent years. For example, in Saint-Jovite, which is now part of Mont-Tremblant, property values have more than doubled in just a few years.
This is why people are now looking for properties on the North side of the mountain, where prices are still affordable.
The new Intrawest project (a $1 billion investment) on the mountain’s Versant Soleil will spur demand and boost property prices very rapidly. Infrastructures have already been built, as well as upscale condominiums.
The construction of the Ludoplex casino(without tables) (a $55 million project) on Versant Soleil is scheduled to begin spring 2008. This will be followed by a luxury hotel and a new village, which will be connected by a gondola(cable car) to the South side of Tremblant Resort.
In an investment context, we might compare this portrait to the Verbier ski resort in the Southern Swiss Alps. Because of the area’s exclusive reputation, the very rare pieces of available land are going for over 3,000 CHF/ m2.
This situation has resulted in supply and demand being shifted to the North side of the mountain. The price of lots at the North-side La Tzoumaz Resort, about 30 minutes from Verbier, currently stands between 200 CHF and 250 CHF/ m2, compared with 80 CHF and 100 CHF just two years ago.
In Quebec, we are seeing the same phenomenon at Tremblant Resort.