Photo by Whitehorse Star

John Cole

Prospective buyers say thanks but no thanks to $200,000 lot

There were no takers for the lone country residential lot in Friday's public tender for the last property in the Whitehorse Copper subdivision.

By Chuck Tobin on March 19, 2012

There were no takers for the lone country residential lot in Friday's public tender for the last property in the Whitehorse Copper subdivision.

The Yukon government placed a minimum bid of $200,000 on the 1.43-hectare parcel, which originally sold in the public lottery for $101,000 back in 2007 and again in 2009 for $101,000 when it was turned back by the first lottery winner.

After it was turned back a second time, the government had it reappraised.

John Cole, the manager of lands for the Department of Energy, Mines and Resources said today the lot is now available over the counter for $200,000.

Friday's public tender for the Whitehorse Copper lot was the first time the Yukon government tried to sell a piece of residential land to the highest bidder.

The market value was placed at $244,000 by a professional appraiser late last summer, said Cole.

He said the government was concerned about the appraised price. It therefore decided to drop the price to somewhere between the cost of development and the market value.

For the four urban single family lots in the new Ingram sold by lottery Friday, 45 applications were received by 25 individuals or companies.

All four lots were sold, ranging in price from $83,625 to $96,290, and ranging in size from 437 square metres to 645 square metres.

Cole said the lots were priced at the cost of development.

For the 49 single-family and three multi-family lots available by lottery in Haines Junction last week, five applications were received and three single-family lots sold.

The lots ranged in price from $38,518 to $72,723 and in size from 450 square metres to 994 square metres.

Cole said the lots were priced at the cost of development, and are now available over the counter.

No lottery applications were received for the 20 industrial lots available in Dawson City's Callison subdivision.

Lot prices range from $79,736 to $161,964, and range in size from .4 hectares to .85 hectares.

Cole said the lots were also priced at the cost of development, and are now available over the counter.

Comments (10)

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Billy Polson on Mar 28, 2012 at 5:53 am

Joel, 3 jobs!....I guess Mike is just lazy...glad his kind wasn't around during the big war.

Anyway...

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Joel on Mar 27, 2012 at 7:07 am

I don't know, it seems to me all these houses are selling for the prices they are asking or more even. If no one could afford these houses, the prices would go down. Period.

If we have the highest level of disposable income in the country, people have to have the money to have a house and pay the bills and go out to eat, buy their quads and sleds, campers, etc. That is plainly how it works. We are very well off for how much we complain.

Housing in this town is an investment at this point in time. People buy a house and then sell, or they buy multiple houses and rent them out. At some point that will crash down, but right now, this is where we are at.

If you are going to sell your house, would you list it 25% below what comparable homes are selling for in your area? Common sense does dictate that the prices are too high right now. Everyone also wants to make money off their investments. Which one do you think everyone will follow?

I currently work 3 jobs to pay for my house/family and hobbies; in that order. I pay my bills as quickly as I can and don't overindulge. Does that make any difference to the housing market in Whitehorse? Does it change the price of a country residential lot in Whitehorse?

I do agree with Francias on this one but I am hoping they don't rise too quickly. I will feel very sorry for the people that have over-extended themselves to have the homes or lifestyles they have chosen.

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Billy Polson on Mar 24, 2012 at 12:16 am

Joel, Mike couldn't afford a house or land to build on in Whitehorse. If he did buy one he wouldn't have the money to buy groceries, gas or pay the electricity. Forget going out for a nice meal and supporting that sector of the economy (that disposable income thing)

An investment is something you can afford to further your financial future. Buying in Whitehorse is a forced march. Those buying are cashing in savings, fortunate to be able to leverage profits from the sale of a house or use $'s from mom and dad warbucks. In many cases, if they want to stay they pay.

It's a big swallow too I'm sure, what with the economy world wide and in Canada (Ontario). Hoping there is no housing adjustment, interest rate increase or end to this Yukon "boom".

When does common sense get a nod. Houses could be 25% less and be profitable and affordable.

Who do you work for Joel?

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Francias Pillman on Mar 22, 2012 at 10:04 am

I can't wait till interest rates rise. This fake real estate racket can't last forever. All it is, is a ponzi scam. You always need new people at the bottom to continue the scam. Well, we are approaching the point of no return. Thumb down my comment all you want. It doesn't change reality.

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Joel on Mar 22, 2012 at 2:47 am

Here is the problems since I looked at the lot personally. The lot has been returned previously so it could be there is something wrong with the lot. It is on a low point in the area so it could be wet or catch drainage. It is winter so none of these things can be known at this point. It was a tender which makes it hard to guess what the price would end up being. There are hills to the south and west limiting you sunlight to the lot.

I personally noticed the neighbor had equipment in his yard which could be a concern as well.

I would bet either the lot will sell quickly now that it is an over the counter sale or it will sell once the snow melts and people can get a better idea of the location.

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Joel on Mar 22, 2012 at 2:14 am

Mike, where did you move to then? I agree the house market is insane but people are paying it so why would it go down. Everyone wants to earn a profit on their investment and that is what a house is considered now, an investment.

Electricity is comparable to any province in the south and cheaper than most other areas in the north. Food is the same even though it travels up the highway to get here. Gas is about the same depending on where you compare to at whatever day. All the items in the chain store are the same price and the local retailers can't gouge you since there are so many other options. I would love to have everything cheaper, but we are not bad off at all.

There is a reason why the Yukon has the highest disposable income of any province or territory in Canada

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mike on Mar 21, 2012 at 12:54 am

We came to the Yukon and left. If the wages were comparable to the cost of living, especially the artificially high house prices, the artificially high electricity, food and fuel prices and no jobs with a future I think we can easier buy a house in Sydney, Singapore or Geneva, where you actually can have a life and a job AND be able to pay your mortgage…. Which is sad, the Yukon is very nice, it's just the government is there to cash in for its own benefit, not the people.

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scott herron on Mar 20, 2012 at 7:05 am

I agree that the prices for undeveloped lots in Whitehorse and vicinity are now beyond economic reach for the majority of yukoners. However I can also sympathize with the city and territorial governments. Average house price in Whitehorse is now $430,000.00. A new rural residential home close to the city is $500,000 - $600,000. The reality is, if the government puts undeveloped lots on the market below market value, any developer will still charge market value when they sell the parcel post-build. At $200 per square foot to build, a new 2000 square foot house is coming in at $400,000. On an acreage it can be sold for $600,000. Even if the lot is sold off by the government at $75,000 - the price is still going to be $600,000 because that is the market value. The only result is that the developer makes a greater profit, it does not result in lower cost housing. The same holds true for town lots. None of this helps out the folks that cannot afford these prices. As an owner/builder it becomes impossible to purchase a lot at these prices and build on if you don't already own a morgageable property, as a bank will not give anyone a $400,000 unsecured line of credit. This part of the equation is potentially somewhere that the government could play a constructive role. Bottom line, sucks to be getting into the Yukon real estate market in 2010 - 2018.

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Jaymanc on Mar 19, 2012 at 11:33 pm

Guess people said enough is enough! John Cole this is robbery and you should be ashamed of yourself! This isn't oil your talking about its a lot with nothing on it, no sewer, no water, no electricity, so on top of $200000 you'll have to pay another $40K at least to get that all installed. I say this is outrageous and there needs to be more people to say something! Over the counter? What is this, a boot legger for property? Does anyone else think this is illegal? And to think that these people make decisions for us! Change em up I say get some new eyes in there the old ones aren't doing well!! Retire already!

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Doug Rutherford on Mar 19, 2012 at 12:10 pm

I'm glad to see that people aren't stupid.