 Devon is a can't-miss investment - Nov. 14, 2003 Devon Dispatch News
Devon is a ‘can’t miss’ investment
REIN Places Devon Second
Nov. 14, 2003
George Brown Editor
Devon Dispatch News
Devon is Alberta’s ‘can’t miss’ real estate investment opportunity.
A province-wide annual study by the Real Estate Investment Network (REIN) has named Devon the second-best community in which to invest, right behind Edmonton. Devon is the best small-town choice, ahead of Sylvan Lake, Okotoks, Lacombe and High River.
The study ranked 31 Alberta towns and cities for their residential real estate’s return-on-investment potential. Devon finished second in a similar REIN study in 2002, second in 2001 and first in 2000 – meaning it is a consistent winner for investments.
“It’s positive news because an external organization speaks highly of our community, and they feel our community is positioned very well for the future,” said Town of Devon CAO Chris Jardine.
“Their report says that Devon is in good financial shape and well-planned and well-managed.”
“With an average (single-family home) real estate price of around $140,000, and a rental vacancy rate of less than one per cent, Devon will continue to be a shining star for investors in both multi-family and single-family properties,” the REIN study predicts.
“The REIN reports substantiates what most residents of Devon already know – that Devon is not only a great community in which to work, live and raise families, but also a great community in which to invest in residential real estate,” said Randy Bertrand, Devon’s manager of economic development. “We find it particularly gratifying to see REIN rank us so highly year after year. Such consistent returns on investment make Devon especially attractive.”
“The town of Devon is a good template for other towns,” said Don Campbell, REIN President. “We look at towns with a future – not with a past,” Campbell explained. “We always look for the opportunities that are coming to a town.”
REIN sees the new ring road in Edmonton, tying the south side and west end together with a new bridge across the river, as a boon to Devon, making the town more attractive to people who want to live in a small town but who would continue to commute to work in the city.
“There’s a big demand for young families to move to Devon. That’s a good thing,” Campbell said. “Young families are moving to Devon because it’s safer than raising your children up a in a large centre.”
Campbell said Devon has kept pace with its infrastructure needs, and he expects the town to grow by “leaps and bounds” once services are extended across Highway 60.
“That’s the one thing I see holding the town back – the lack of current land there is to develop.”
Council does need to make that decision soon to maintain the momentum home builders have in the community. Builders need to build, Campbell said, and if there is no land in Devon, they’ll pack up and go where there is land and a market.
Jardine is hopeful there will be a resolution in the annexation talks with Leduc County, but he sees the annexation bid across Highway 60 as just one long-range planning tool.
“If we don’t get annexation done in the next few years, it doesn’t preclude us from developing across the highway,” he added.
Regardless of whether Devon grows across the highway, REIN believes it will be good for investors: if Devon expands, average house prices will increase because new homes will be more expensive than the current stock; and if Devon doesn’t create new housing developments, there will be a higher demand for housing in town, driving prices up.
“New Devon is going to have its own set of trails along the river. It could easily double its population and keep its small-town cache,” Campbell said.
Devon is distinct from Stony Plain or Beaumont, two other towns experiencing housing booms, because those towns are seen as bedroom communities.
The fact that commercial development in Devon hasn’t kept pace with residential growth is not a concern for REIN, which deals exclusively with residential investment. Devon’s proximity to Edmonton means a full range of services is a short drive away.
“The people who move to small towns, the majority want to support local businesses wherever they can,” Campbell said.
As the town attracts new businesses and new jobs for residents, opportunities for higher-density residential development are created. Campbell said the right developer at the right time will do well with a modest three- or four-storey walk-up apartment building.
“People will not come to Devon to live in a high-rise,” he said. “People will come to Devon to live in a three- or four-storey walk-up.”
Campbell said Devon has been insulated from the boom and bust cycles that have affected neighbouring communities. “The vacancy rate has never really sky rocketed and it never really collapsed.”
Devon is the perfect location for a 55+ development, such as the Highpointe Gardens planned near the hospital, Campbell said. With its trails, parks and possible swimming pool and wellness centre, Devon promotes and active and supportive lifestyle for seniors.
“Lifestyle is what is bringing people to your town,” he said.
Devon Real Estate Facts
The demand for real estate in Devon has taken a substantial jump every year since 1999. The challenge will be to continue the growth while at the same time keeping the overall character of the town intact. With an average real estate price of around $140,000 (condo $76,000) and a vacancy rate of less than one per cent, Devon will continue to be a shining star for investors in both multi-family and single-family properties.
Devon Economic Facts
Devon’s economic engine is distinct both as a “commuter town” and local employer. Lifestyle drives the people to move there, with the population of Devon working in varied locations and industries. 35 per cent of the people commute to Edmonton, 19 per cent commute to Nisku/Leduc/International Airport area, and 31 per cent work directly in Devon. The major industries in the town include research and development, oil and gas, light manufacturing, tourism, health, education and a burgeoning service sector. Devon’s growth has been consistent and strong for almost two decades, due to its “future look” planning, as well as its economic base.
– From REIN study
Posted November 14, 2003 |
