Government is increasing development costs for future building in Metro Vancouver

Government is increasing development costs for future building in Metro Vancouver

    September 17, 2021

    Developer typically pays a one-time fee (development cost charge) for any new development to help cover Metro Vancouver’s sewerage infrastructure costs. The Metro Vancouver Regional District is planning to increase the fee substantially but states that the amount varies depending on location. Due to the increase in construction cost, partial of the cost could be passed down to the consumer when the project goes live.

    The region is planning to make significant upgrade to the liquid and waste infrastructure in order to expand capacity and accommodate for the expected population growth for decades to come. The increase in development cost charge (DDC) is justified under this circumstance as Metro Vancouver rapidly redeveloping and many of the underground pipes are constantly being upgraded to accommodate new high-rise buildings.

    The region is divided into four separate sewerage area: Fraser, Lulu Island West, North Shore and Vancouver. City of Vancouver, University Endowment Land, parts of Burnaby and Sea Island/YVR will see the highest increase nearly doubling its DCC rate.

    Existing Rate (2017):

    Future Rates:

    Vancouver sewerage area: 84%-85% increase

    • Single family homes: $1,811 to $3,335
    • Townhomes: $1,618 to $2,983
    • Condo: $1,072 to $1,988
    • Non-Residential: $0.93 per sqft to $1.63 per sqft

    The rate depends on how strong the population growth in that region, which explains why parts of Burnaby under the Fraser region sees a hike more other locations within the same region.

    Large portion of Vancouver’s DDC goes to a new expanded replacement of the Iona Island Wastewater Treatment Plant located at Iona beach behind YVR airport. It is expected to cost $10.4 Billion inclusive of contingencies. An additional $400-$500 annual tax increase to fund the new plant.

    The region is also looking into introducing water supply system to Coquitlam Lake. It will be another $2.3 billion project to construct water intake tunnel and treatment plan. In the long run we will be seeing lots of core facility upgrade in the region that needs to be funded. There will be a new water supply DDC for future development planned as a single flat rate fee. On the Municipal level they’re charging their own utility costs.

    Beyond the rate increase discussed above, there are more requirements by local authorities for demolishing a building. According to Pestcheck, a local pest control company based in North Vancouver, many local authorities in Metro Vancouver require a pest control/rodent abatement report issued by a professional pest control business. This is necessary to ensure pests do not run away and look for shelter elsewhere causing pest infestation next door.

    We’re expecting the costs to rise in the years to come and we hope the economy continues to grow to be able to support it.

    Yoyoe Lu

    Founder and managing principal

    Yoyoe is the founder and managing principal of Claridge. She was ranked one of Vancouver’s top real estate agents. Currently, Yoyoe is our strategic mind leading the team to success. Her affiliation with industry professionals put her ahead of our competitors. Yoyoe is also part of the Rotary Club of West Vancouver, Canadian Homebuilders Association, Urban Land Institute and Urban Development Institute.

    Ashley Osborn

    Development Site and Investment Specialist

    Ashely is our lead land and investment advisor. He has been consistently featured in the annual top 100 real estate deals of British Columbia ranking. With over $15 billion worth of domestic and international real estate investments under his belt, Ashley is one of the top agents in the province. His 20 years of real estate and financial experience make him a master in negotiation and acquisition.

    Patricia Wong Chong

    Investment and Leasing Specialist

    Patricia is our investment and retail leasing advisor. Her experience in brokerage and market research analysis has helped her comprise over $550 million in commercial real estate transactions. Patricia is responsible, detail-oriented, and professional. Her strong work ethic and positive attitude have led her to surpass all her competitors.

    Schumann Li

    Land Assembly & Residential Specialist

    Schumann is a top-producing realtor in the Lower Mainland with more than 30 years’ experience. Over the years, Schumann hasn’t just garnered awards, but the trust of countless customers. Her clients continually refer to her outstanding professionalism, work ethic and poise.

    Wendy Kaip

    Sales Associate

    Whether it’s decoding city policies, strategizing relocation plans, home sellers looking for a trustworthy advisor to unlock their property’s maximum potential- Wendy is here to help every step along the way.

    Prior to real estate, Wendy spent over a decade in the mining industry with her attention to detail, keen negotiation skills, extensive network and strong reputation for getting the deal done, bringing endless value to her current real estate clients.

    Whether you are thinking about selling to a developer, or have more questions about commercial real estate, Wendy invites you to connect, to see how she can utilize her expertise and team to help create value and maximize your real estate goals.

    Simon Chan

    Managing Broker

    Simon is the managing broker of Claridge Real Estate Advisors Inc. His expertise has helped our agents resolve many difficulties. Not only is Simon knowledgeable with real estate legislation, but he is also very detail orientated. With Simon on our team, our agents are confident to conduct businesses and will always get the support they need to ensure they’re not walking on dirty water.

    Frank Zhou


    As the analyst of the company, my key job is to help brokers to find marketable clients and locate feasible development sites by collecting and analyzing up-to-date market transaction data and conducting target market and property-level research. Meanwhile, I am also in charge of maintaining the company’s property database to ensure accuracy and comprehensiveness and continuously upgrading the level of knowledge by staying up to date with hot topics, and market trends, and incorporating findings into everyday work. Before joining the company, I worked for CR Group as a real estate investment manager, focusing on capital raising, equity and debt financing, acquisition and renovation. I hold 2 master’s degrees, one in Housing Management and the other in Economics.