Nova Builders owner Mike Mrdjenovich predicts the city will see residential vacancy rates of up to 10 per cent as construction currently underway or pending comes onstream.

Mike Mrdjenovich - 'Housing is tight, but the situation is not critical'

Hard-pressed renters -- and Yellowknife businesses planning to bring in new workers -- currently face a near-zero residential vacancy rate.

A recent ad in the Yellowknifer for a three-bedroom townhouse drew nearly 30 applicants after one day.

Northern Property Real Estate Investment Trust -- formerly known as Urbco -- owns 796 rental units in Yellowknife and all are taken except for 13 units that are being renovated.

"Otherwise they would be rented as well," said general manager Darren Pelley.

The firm receives 50 applications a month from hopeful renters. Mrdjenovich said that while housing is tight, the situation is "not critical" and won't reach that stage.

"People are panicking but there are lots of spaces going to be available by summer. When everything comes in we project a vacancy rate of 5 to 10 per cent."

Nova is well versed in the Yellowknife housing market. Mrdjenovich estimates the firm has built about 5,000 housing units throughout the North over the past 25 years.

Plenty of building

Last year, the City of Yellowknife issued development permits for 274 multi-family units (apartments, condos, townhouses) and 109 single family units (houses and manufactured homes).

Not all of the developers securing permits last year have started construction, said city planner Dave Jones. Most of the construction that started last year has yet to come on the market.

Developers with projects approved last year and now under construction include TC Enterprises (36 units), Clark Builders (11 units), and Polar Developments (110 units).

Polar's Ray Decorby expects to have his 110-unit high-rise finished and ready for occupancy by early spring, if not sooner.

When finished, the building won't take long to fill. Polar began distributing rental information packages in early January and has been swamped with applicants.

Rents for the stylish suites will range from about $1,200-$1,350 for a one-bedroom to more than $2,500 for a large (two bedrooms plus den) west view penthouse.

More building projected

Jones said the city's projected residential development potential is 217 multi-family and 130 single-family units. The city has yet to issue a building permit for any of the construction pencilled in for 2003.

The largest multi-family project currently at the permit application stage is a 118-unit complex (two buildings) to be built by Nova near the Ecole St. Joseph's School.

The project was initially planned as a single, 60-unit building but was scaled up given the current market, said Mrdjenovich.

"We expect to receive a building permit very shortly and with that we will begin construction immediately. We hope to have both buildings finished by July."

The company will decide then whether to rent or sell the units.

"They are built to condo standard so we can go either way."

Meanwhile, the city is planning to move forward with Niven Lake Phases 4, 5 and 6 this year, said Jones.

Phase 5 is projected as a 75-unit townhouse or apartment-style development, either rental or condominium. The city owns the serviced lots and is at the preliminary discussion stage with interested developers.

Niven Lake Phase 4 is planned for 41 single family homes. The lots will go on sale this year as scheduled. Phase 3 lots sold out last year at prices ranging from $65,000 to $75,000. Homes on a number of these lots are now under construction.

Niven Lake Phase 6 is planned for 75 single family homes. Phase 6 lots were not scheduled to go on the market in 2003 but the city is now hoping to do so, said Jones. All 75 lots are included in the city's single-family development potential outlook for 2003.