Estevan - Strategic Investment Realty

Solid, Diverse and Growing Economy
Sustainable Growth
Increasing Migration
Good Job Creation, and Low Unemployment
History of Low Vacancy
History of High Rents
Current Demand for Housing
Realistic Potential for Solid Price Gains
Estevan meets all of the criteria of a
solid real estate investment market.
Estevan
“the energy city”
Why
Estevan?
Po pul ati o n & L o c at ion
The City of Estevan in the Southeast corner of Saskatchewan wears the aptly titled
moniker of “The Energy City”. A bubbling hub of oil and coal, this friendly city is rich
in resources—and looking for investment.
4
Sitting on the edge of one of the hottest oil fields in North America and
located minutes away from a multi-billion-dollar SaskPower expansion
project, Estevan, population 13,000, and growing, has developed a
Canada-wide reputation as the place to go for people seeking work.
4
There are in excess of 7,000 oil wells within a 160 km radius, most of
which are owned and serviced by companies based out of Estevan. 4
Estevan provides numerous business advantages, including close
proximity to the US market, a large retail trading area and a rich resource
base that provides its citizens with a diversified and stable economy.
A Canada-wide
reputation
as the place to
go for people
seeking work.
Why
Estevan?
E c onom y
Estevan has the strongest economy in Saskatchewan due to its proximity to the
Bakken Oil field, extensive coal mining and a strong agricultural sector.
The Estevan region has the lowest unemployment rate in Saskatchewan
and the highest participation rate. The strong labour market and business
opportunities make Estevan and the region a desirable location for families
and businesses to grow the community.
The oil industry is a major part of the community’s economy, and the city
boasts more than 200 businesses directly related to this important sector.
U.S. geological Survey estimates that the Baken oilfield may contain as
many as 4.3 billion barrels of oil, much of which was unreachable until
now, as new technologies such as horizontal drilling and hydraulic fracturing
make extracting crude from between layers of shale rock more feasible.
Estevan has
recently earned
a place on the
world stage as
the site of an
Estevan has been on the receiving end of the oil boom, witnessing consecutive
years of “unprecedented and record-breaking growth” over this period.
Since 2002, about 4 million barrels of oil have been produced from the
Bakken formation. This number represents the tip of the iceberg in regards
to the potential of the Bakken play.
iNNoVATiVE
Estevan has recently earned a place on the world stage as the site of an
innovative and ground breaking clean coal project. The $1.23 billion Boundary
Dam Integrated Carbon Capture and Storage DemonstrationProject.
BrEAKIng ClEAn
nearby coal mines are also an important resource and source of employment.
Most significantly, locally mined coal is used to fuel Estevan’s two enormous
power plants, which are responsible for generating almost half of the
province’s base load power – and for providing employment for hundreds
of residents.
AnD grOUnD
COAl PrOJECT.
The Aquistore project is being done in conjunction with construction of the
carbon capture facility currently underway at Boundary Dam Power Station’s
Unit 3.
Why
Estevan?
Once it becomes active in early 2014, the captured carbon will be sent
via a pipeline a few kilometres west of the power station and into a layer
of sandstone.
If the combined efforts of the Boundary Dam and Aquistore projects prove
that carbon dioxide can be efficiently captured and safely stored, It could
revitalize the industry all over the world.
Aside from its energy base, Estevan has a strong business presence in
the agriculture, hospitality and retail sectors. The city’s proximity to the
United States also adds another layer of business and tourism traffic
within the community.
The average
household income
is 114% above
the national
average.
“We have a very unique situation
happening here in Estevan, where we’re
firing on all cylinders. Since the global
recession started in 2008, compared to
the rest of North America we’ve gone
in the opposite direction. Our markets
are very strong, our income levels are
amongst the highest in the country, and
we have one of the best investment
climates in North America.”
– Michael Cyrenne, Director of
Economic Development
The tremendous opportunity available in the Estevan area has led to a
community known as the youngest in all of Saskatchewan and also as
the city ranked #1 in all of Canada in terms of discretionary income.
The average household income is 114% above the national average and
Estevan is also home to the highest level of average household liquid
assets of any Saskatchewan city.
As a result of all of the energy projects in the city, employment is on
the rise, and unemployment on the decline.
Saskatchewan Economy Minister Bill Boyd said the southeast region,
which includes Estevan, is a significant contributor to the province’s
revenue base. “It’s driving a good portion of our economy right now.”
Change in Employment (lhs)
Percent
Percent
Unemployment Rate (rhs)
3.0
6.0
2.5
5.5
2.0
5.0
1.5
4.5
1.0
4.0
0.5
3.5
3.0
0
2005
2006
2007
2008
2009
2010
2011
2012 2013F 2014F
Saskatchewan’s Job Market in Good Shape
Source: Statistics Canada
Why
Estevan?
R eal Esta t e O u t loo k
Estevan continues to lead the real estate, and rental market in Saskatchewan with
the lowest vacancy, highest rents and growing home prices.
Estevan’s vacancy rate is the lowest in the province at 0%.
As with any community experiencing growth and optimistic
economic prospects, Estevan and region are faced with the
necessity of increased urban development planning to address
upcoming or current housing and infrastructure issues.
Current home building activity is not sufficient to keep pace with
rising demand and higher home prices and lower vacancy rates
are the result.
Currently, in Estevan, a typical single family home is between
$300,000 and $400,000, more than $400,000 for a brand new,
single-family house.
if they’re in that
$200 000
$300 000
range, they get
snapped up
pretty fast!
“Houses in Estevan sell for much
more than they would in other,
similar sized cities, with an average
three-bedroom bungalow going for
about $350,000 – and not many
available at that.”
– Globe and Mail – May, 2012
In 2012, MoneySense magazine released its annual Best Places
to Live in Canada rankings and Estevan took a big jump in the
standings, moving from 93rd in 2011 to 43rd. Estevan was also
ranked first in the jobless rate category, a nod to the city’s red
hot economy.
According to Lynn Chipley, owner of Century 21 Border Real Estate,
in a March 2013 Estevan Mercury article “Our biggest pressure,
rentals. What it’s meant is things like the multi-family that have
come into the city, whether they are the apartment-style condos
or the townhouse-style condos. As soon as those are available, if
they’re in that $200,000 to $300,000 (range), they get snapped up
pretty fast”
Estevan is geared up and ready for newcomers. Estevan is a
storehouse of natural resources and a powerhouse of valueadded industries. The prosperity of Estevan is attracting interest
of different businesses as they continue to generate more
activity, overcome barriers to growth, and create new
opportunities wherever possible.
Why
Estevan?
N ews Artic le s
New natural gas facility announced
- Sask Lifestyles , September 2013
“Bayhurst Energy Services Corporation (BESCO), a subsidiary of SaskEnergy, has announced a joint venture with Mistral Midstream Inc.
of Calgary. It will result in the construction of a $72.5M facility that will extract ethane and other hydrocarbons from natural gas being
transported on SaskEnergy’s natural gas system from the Bakken formation in southeast Saskatchewan.”
"energy City” welcomes first private residential developers in years as investors stake claims
- Western investor, June 2013
“It is not hard to find clues to the growth in Estevan: building permits are averaging nearly $3 million per month, there is high demand for
industrial land and residential rents are the highest in Saskatchewan. While most equate this city of 12,000 with oilpatch plays, according
to land development manager Rob Deny’s, “We have a very diversified economy .” While the traditional money makers - oil, coal and
farming - still dominate, Estevan is also becoming a unique centre for carbon capture storage technology .”
Real estate prices in Estevan expected to remain high, despite new developments coming in 2013
- Estevan Mercury, March 2013
“real estate is booming in Estevan, and prices may continue to climb through 2013, as availability is an issue for the most desired
houses. “We’re short of inventory in every price range. Price ranges from $150,000 to $500,000, we could use,” said Diane Jocelyn,
of Estevan real Estate Professionals.”
The investment mightier than the concerns
- Estevan Lifestyles, February 2013
“The $90M Ceres project means that there will be even more trucks on Highways 9 and 18. There will also be concerns with the pressure
applied to the already strained housing marketin southeast Saskatchewan..... But it is a development worth celebrating. It’ll add more
strength for two of the most important industries in the province. It’ll further enhance the southeast. And it’s another example of what is
now possible in the province.”
Rental properties: rates higher; availability lower
- Sask Lifestyles, December 2012
“In Saskatchewan’s southeast section, elevated energy exploration maintained strong labour market conditions, fuelling demand for
rental units in Estevan,” the report stated.
Estevan takes big jump in MoneySense ranking
- Estevan Mercury, March 2012
MoneySense magazine released its annual Best Places to Live in Canada rankings last week and Estevan has taken a big jump up the
standings, moving from 93rd in 2011 to 43rd this year. Estevan was also ranked first in the jobless rate category, a nod to the city’s red
hot economy.
Why
Estevan?
The Renta l Sit u at ion : R e a l A ds fr o m K i j i j i
Newer trailer for rent
House For Rent In Estevan
Ad ID 489810751
Ad ID 493984850
Date Listed: 30-May-13
Price: $3,000.00
Address: Estevan, SK S4A 2S1, Canada
Bedrooms: (#) 3 bedrooms
Bathrooms: (#) 2 bathrooms
Size (sqft): 1520
For Rent By Owner
Furnished: No
Pet Friendly: No
Date Listed: 12-Jun-13
Price: $2,500.00
Address: Estevan, SK S4A 1W4, Canada
Bedrooms: (#) 3 bedrooms
Bathrooms: (#) 1 bathroom
Size (sqft): 1048
For Rent By Owner
Furnished: No
Newer trailer for rent in Estevan, Sask.,
Contact for more information
3 bedroom house in Estevan $2500 a month near two schools, and three parks.
House is in great condition in a great neighbourhood, large fenced off yard. ONE
months rent deposit and references prefered. Call or email if interested.
ESTEVAN - Brand new fully furn.
- Incl everything! Fall 2013
4 bedroom house for
rent in Estevan
Ad ID 493133556
Ad ID 494483519
Date Listed: 10-Jun-13
Price: $3,250.00
Address: 2366 Elphinstone Street, Regina,
SK S4T 3P1, Canada
Bedrooms: (#) 3 bedrooms
Bathrooms: (#) 2 bathrooms
Size (sqft): 1300
For Rent By Professional
Furnished: Yes
Date Listed: 14-Jun-13
Price: $900.00/room
Address: Estevan, SK S4A 2G5, Canada
Bedrooms: (#) 4 bedrooms
Bathrooms: (#) 2 bathrooms
For Rent By Owner
Furnished: Yes
Pet Friendly: No
We have a number of brand new homes available for rent in early Fall
2013 in Estevan’s newest subdivision.Homes are 3 bdrm, 2 bath with
yard and ample room for parking for less than $110/day!
900 per room, renters pay the utility.
Why
Estevan?
The Renta l Sit u at ion : R e a l A ds fr o m K i j i j i
Executive Fully Furnished
Home Rental in Estevan
Ad ID 488145359
Poster Contact Information
1-306-421-4868
Date Listed: 25-May-13
Last Edited: 08-Jun-13
Price: $2,000.00/room
Address: Estevan, SK, Canada
Bedrooms: (#) 6 or more bedrooms
Bathrooms: (#) 4 bathrooms
For Rent By Owner
Furnished: Yes
Pet Friendly: No
** $2000.00 per room ** Features of the rooms include: * High
quality queen size bed in all the rooms * writing desk and chair *
free wireless high speed internet * free long distance phone calls
within Canada * full cable * iron and ironing board * full size fridge
in all the rooms * very neat and brand new! * daily housekeeping
(I provide bedding’s, towels,, toiletry, etc.) * 2 full kitchen 2 dinning
area * 2 free laundry room with detegent * near Walmart, restaurants
& grocery stores. Just move in with your suit case and relax! If
you are interested please contact me by phone * Will be available
September 1, 2013 * I prefer a group of six for minumum six
months lease **