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Did you know you can buy a home in B.C. on leasehold land for 15 to 20% less than comparable properties in the surrounding area?
This is becoming more common in the Lower Mainland lately.
Today, I’m at the Tsawwassen First Nation lands, at the Boardwalk development near the Marmots. As usual, it’s sunny here! I’m going to explain exactly how leaseholds work and what their benefits are.
In 2009, the Tsawwassen First Nation ratified their treaty, which granted them full title to their land. Following that, a developer leased a large parcel of land from individual Tsawwassen First Nation members. They subdivided it into single-family homes, townhouses, and condos—like the one right behind me that we’ll be touring. These units were then sold individually, just like any other real estate. The lease on this land is prepaid by the developer for 99 years and is registered with the Land Title Office.
So, what happens at the end of those 99 years?
If the lease isn’t renewed, the leaseholder would need to pay fair market value, or the lease can be renegotiated. In reality, there’s little reason why it wouldn’t be renegotiated. I don’t know if you plan to hold onto a condo for 99 years, but if you ever decide to sell, know that several residents here have sold and upsized to larger units within the same community over the years.
To give you some numbers:
• In 2014, single-family homes here were selling for an average of $600,000.
• Today, those same homes go for $1.3 to $1.6 million.
So yes, these properties do appreciate just like freehold ones—but you get in at a lower price.
• In 2017, condos here were selling for an average of $260,000.
• Today, they’re averaging around $400,000.
And for townhomes:
• In 2016, they averaged $450,000.
• Today, similar units are going for $800,000—whether being resold or still owner-occupied.
Across many communities in British Columbia, leasehold land is becoming a key part of economic reconciliation for First Nations, and a more attainable path to homeownership for families.
That’s leasehold property in a nutshell. This development, Boardwalk, is a partnership between Aquilini and individual Tsawwassen First Nation landowners.
Here’s an example unit currently available:
• Price: $581,000
• 2 bedrooms, 2 bathrooms
• 908 square feet
• Includes 2 parking spots
• Amenities include a pool (I won’t zoom in—there are kids swimming!), shared common areas, and a gym (though I’d probably never use it—just being honest!).
There are parks nearby, and you’re right next to Tsawwassen Mills Mall, the BC Ferries terminal, and close to major routes like Highway 17 and the Massey Tunnel.
Now you know.