Yellowknife (Apr 12/06) - Ground will be breaking this spring as Phase 1 construction on the 92-townhome Bayview Estates begins.

With such a short building season, Bond Street Properties of Edmonton is planning to build as many townhouses as possible on its Niven Drive property, said Maurice Yusep, senior vice-president.

James Clarke, owner/agent with Homelife Sunrise Real Estate, the agency listing the Bayview homes. - David Ryan/NNSL photo

"We're at the point of going full speed ahead," said Yusep.

The company is contracting RTL Robinson Enterprises to do blasting work on the property and he said the first priority is to build 16 units directly overlooking Back Bay.

"These will be quality built buildings that you would find in major cities in North America," said Yusep, adding there is potential for 25 jobs on the project this year.

Thus far 23 units have sold, said James Clarke, owner/agent with Homelife Sunrise Real Estate, the agency listing the Bayview homes.

"People want to get in as soon a possible," said Clarke.

The prices on the Bayview townhouses range from $355,000 to $430,000 with taxes included, he said. That's a significant increase from the $289,000-$348,000 in October 2004 when the properties first hit the market.

Those who bought before the price jump will still pay the original price, assured Clarke.

The price spike over the last two years has followed the general trends of Yellowknife's housing market, he said. Lack of supply and ever-increasing demand are pushing costs higher. "There is horrendous demand, but not much supply," said Clarke.

In the last few years, there have been several large commercial projects done in Yellowknife, said Monty Christensen, manager of planning and lands at City Hall, adding that's not the case this year.

"I'm not aware of any major projects going on in the city," he said. "Maybe we have caught up to the demand."

The city is planning to add 10 to 15 lots in the industrial sub-division in Kam Lake Drive.

Christensen said there have been applications filed for family dwellings to be built and there could be more commercial building interest in the coming weeks.