The economic tsunami that has swept into Kitimat is far from cresting, according to real estate investors and city officials in this northeast B.C. town at the centre of liquified natural gas expansion.
"The rental vacancy rate is near zero," said Jason Pender who, with partner Aaron Abrahamson, has snapped up seven multi-family buildings in Kitimat over the past 18 months. Apartments that were renting for $600 last year are now going for $1,100 to $1,200 per month, he said, and demand has driven property prices up at least 20 per cent. "We are now competing for properties," Pender said, adding "the boom is just starting here."
The change is amazing. For years, Kitimat had a rental vacancy rate of 45 per cent and, according to Census Canada, had the largest population decline in Canada as of 2007.
There are concrete plans to build at least three LNG plants in Kitimat, with the first to open in 2015. As well, Rio-Tinto has 1,500 workers in town finishing a multimillion dollar expansion. Kitimat would also be the western terminus for the Enbridge Inc. oil pipeline, if and when it is approved.
"This is the land of opportunity," said Rose Klaus, head of Kitimat's economic development department. Klaus said the real estate opportunities don't end at housing. "We need every type of retail, hotels and more restaurants," she said.
For more on Kitimat, see the April issue of Western Investor.
