SYDNEY, N.S. — Harbourview Inn and Suites is no longer for sale after its owners turned many of its rooms into permanent month-to-month rental spaces to meet a growing demand for temporary housing in this area.
The fixture on Sydney’s waterfront had been listed for sale at an asking price of $4.6 million. A change of heart came from ownership after a notion to offer long-term rentals proved to be a resounding success.
“Tourism in Sydney isn’t the greatest, especially in the winter, so rather than have no income in the winter or little income in the winter we thought we’d try out the long-term stays,” said Alex Martin, the property’s co-owner and manager.
“Luckily, there was a demand for it especially like an all-inclusive thing for people who don’t have furniture and are travelling here or on work terms or whatever. It kind of works out for them.”
Currently, 34 rooms in Harbourview are being rented out on a monthly basis by students, those in town for temporary employment and people waiting for more permanent housing.
The hotel’s location on a bus route, an onsite restaurant, housekeeping and other amenities have created a waiting list.
“We do have a lot of students, don’t get me wrong, because we are on a bus route so it is convenient for them, but we also have a mixture,” Martin said.
“(But) it wasn’t just students that were interested in the all-inclusive. We even have a couple of people that their kids moved out and this is all they need and they like it. They like it, there’s people all around, there’s security here, they feel safer, they chose here rather than get an apartment by themselves."
While the decision not to sell the hotel is not directly associated with the upcoming construction of Nova Scotia Community College Marconi Campus on Sydney’s waterfront, Martin expects that to have another positive impact on his updated business plan.
Valarie Sampson, the regional director for Cape Breton of the Nova Scotia Association of Realtors, called it “preemptive” to see an impact from the construction of the NSCC campus in Sydney, but feels strongly there is going to be one.
“I believe there is going to be a high demand for trades in the area and currently we don’t have enough people,” she said. “You are going to see an influx, I think, of tradespeople to work on the addition on the hospital and the Marconi campus and I think you are going to see more commercial development, people trying to pick up buildings and various properties.”
Already realtors have noticed an increase in the purchasing of buildings for commercial use and in those looking to buy multi-units with a goal to rent them out.
“Some of those great old homes we have sitting on the market for quite some time are being purchased and being converted, so it is definitely having an impact,” she said.
“People do know now that having property downtown is increasing in value and I think by spring we are going to be busier than we are now.”
Residential sales for October 2019 increased by about eight per cent over the same time last year, according to stats from the Nova Scotia Realtors Association. Year-to-year sales numbers are up about 1.5 per cent and property values are on the rise.
Even older inventory in the Sydney area started to move last year and continues to move this year, Sampson said.
“Some international students' parents have come in and purchased homes for their children to live in because there is just nothing suitable or there are just none period.
"At some point we saw as many as two and three people in one bedroom because of the scarcity of rental units, so there is a high demand for rental units and that’s where I see the current trend going, that people want rental units.”
Sampson said other foreign investors have been searching for properties to purchase here because they see it as the next up-and-coming area.
“I know myself I have a couple of commercial buyers who are looking for properties to purchase and develop. And I’m not the only one, I’m sure every brokerage is just the same.”
Those investors are inquiring for rental-property reasons and to move in with businesses.
“I think that commercial district in downtown is going to enjoy a significant growth, as well. That’s just my opinion.”
As for the Harbourview Inn, Martin said two floors are currently being used mainly for monthly rental purposes. A third floor is being renovated for use by hotel guests.
“It’s pretty popular and I think it will stay that way, especially with Marconi moving next door, so I don’t think I will have any issues,” said Martin said.
“This is definitely the way to go. The only regret I have is that I didn’t’ do it a couple of years ago.”
Home sales, October 2019
Residential sales
- Nova Scotia - 1,044 sales
- Cape Breton - 81 sales
Year-to-year percentage change
- Nova Scotia - 14.1 %
- Cape Breton - 8.0 %
Residential average price
- Nova Scotia - $248,059
- Cape Breton - $148,335
Year-to-year percentage change
- Nova Scotia - 8.6 %
- Cape Breton - 1.6 %
Year-to-date 2019
- Nova Scotia - 10,732 sales
- Cape Breton - 660 sales
Year-to-year percentage change
- Nova Scotia - 8.9 %
- Cape Breton - 1.9 %
Residential average price
- Nova Scotia - $254,054
- Cape Breton - $151,545
Source: Nova Scotia Realtors Association
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