Three Recreational Areas In British Columbia That Investors Should Keep An Eye On This Summer

Unveiling the Road to Success: Bamfield Shines on the Pacific Rim; Penticton Powerhouse: Massive Expansion Set to Ignite South Okanagan; Coldstream’s Coastal Makeover and Infrastructure Revamp: A Northern Paradise Transformed!

In November, Western Investor handpicked the mighty duo of Bamfield and Penticton as two of the top five towns for savvy real estate investors in 2023. Now, brace yourselves as we introduce the sensational addition of Coldstream—a picturesque beachfront community near Vernon—to our coveted list of three scorching recreational markets in beautiful British Columbia to keep an eye on this sizzling summer.

Penticton

Don’t fret if you feel like you missed out on the Kelowna boom of recent years, because Penticton beckons with an enticing opportunity to be part of one of Canada’s premier recreational markets, all at more affordable prices.

Situated just 45 minutes away from Kelowna in the South Okanagan, Penticton boasts stunning lakefront beaches, a plethora of outdoor activities, a flourishing food and wine scene that attracts tourists, and top-notch recreational facilities. Over the past five years, Penticton’s population has experienced a noteworthy 9 percent increase, while the rental vacancy rate has dropped to a mere 1.1 percent, as reported by the Canada Mortgage and Housing Corp.

What sets Penticton apart from its neighboring Kelowna is the exemption from British Columbia’s speculation tax and vacant-home tax, making it an even more appealing destination. Anthony Haddad, the General Manager of Community Services in Penticton, highlights the city’s ambitious North Gateway Plan, a grand redevelopment endeavor that will introduce an impressive 2,000 new homes. Located in the northwest corner of the city, the North Gateway will feature a delightful array of boutique shops, diverse housing options, hotels, and an array of entertainment and recreation amenities. Moreover, the plan includes provisions for up to 350 new hotel rooms and approximately 30,000 square feet of fresh commercial space, enhancing the city’s vibrancy and appeal.

House Prices

Currently, the average price of a detached house in Penticton stands at $754,500, marking an 8.7 percent decrease from the previous year. Notably, this average remains well below the current $1.1 million average in Kelowna, making Penticton an attractive alternative for savvy investors. Waterfront properties in the Penticton area can be acquired at an average price of $1.03 million, reflecting a 24 percent decline compared to the previous year. As of May 1st, the market offered 22 waterfront properties for sale, doubling the number from a year ago.

Shane Styles, President of Epic Real Estate Solutions Inc. in Penticton, identifies short-term rentals and the condo market as lucrative investment targets in this thriving city of the South Okanagan. Unlike neighboring Kelowna and Summerland, Penticton imposes no restrictions on short-term rentals.

A consulting firm, commissioned by the city to study the short-term rental policy, discovered around 500 such rentals, with most being full houses, comprising roughly 1 percent of the city’s rental inventory. These rentals generated an average annual revenue of $54,000 in 2022, with an average daily rent of $461.