Economy is heating up
Doug Ashbury
Northern News Services
Yellowknife (Nov 01/00) - Vacancy rates strongly suggest Yellowknife's economy has gone from warm to hot.
According to a survey by appraisal firm Stewart Weir MacDonald, the city's apartment vacancy rate during the week of October 16 was just 2.5 per cent.
Only 32 of 1,277 apartments covered in the survey were available, and eight row-house units out of a total of 321 were vacant.
The firm surveyed companies with a total of 1,598 rental units (1,277 apartments in 39 buildings and 321 row-houses in eight complexes).
In 1999, in a similar survey, the firm found a 10.3 per cent overall vacancy rate. Of the 1,426 apartments covered in that survey, 126 were vacant while 56 of 341 row-house units were empty.
Two years ago, the firm found an 11.6 per cent vacancy rate.
The characteristics of the rental market have changed, with many units recently taken off the market, but the percentages still translate into about 200 more renters currently than were here two years ago.
Since the 1999 survey, companies have converted, or are in the process of converting, 124 units from apartments to executive suites. Among these are Urbco's conversion of Lakeview Heights to condominiums and the recent announcement that Fraser Tower units will be switched to executive suites.
Laughlin MacDonald, the appraisal firm's managing partner, said even apartments that previously sported higher vacancies are now packed.
Unfortunately, for people renting, higher vacancies give landlords fuel to fire up monthly rents.
MacDonald said his report does not draw conclusions, it just gives data.
"When I moved here in 1980 to work for the territorial government, they showed me 15 units, six months later, you couldn't get an apartment."
Diamonds driving numbers
The diamond business is the main reason for the turnaround. Many of BHP's Ekati workforce live in Yellowknife, and Diavik is adding staff as construction work and the Snap Lake project both continue to advance.
There have also been jobs created in the diamond- cutting and polishing industry. Deton'Cho Diamonds recently officially opened. Recently, about 30 Armenians have moved to Yellowknife for long-term periods to work at Arslanian Cutting Works (NWT) Ltd.
Low vacancy rates are not the only thing pointing to a more buoyant economy.
Housing starts are also up. Recent figures list 16 housing starts worth $2.2 million this year. In the three years from 1997 through 1999, there were only 17 starts.
Two new hotels are expected to open by year's end -- Chateau Nova next month and Super 8 by Christmas.
In addition to the above figures, the mayor and a major Yellowknife developer say the economy is robust.
As his term concludes, Mayor David Lovell said he would have liked to be in office for the "swinging times."
From the business sector, Bellanca Developments -- frustrated in its efforts to develop land beside the Explorer -- is ready to exchange the property for Niven Lake lots. The company says it will even take poorer lots and build homes there on speculation.
Bellanca president Gordon Wilson, who described the city's economy as hot, said last month the company wants to build in Yellowknife.
