Virginia Beach sees 14 percent rise in new construction, more houses valued between $350K-$500K

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The new REI store at Pembroke Mall contributed to Virginia Beach's new commercial construction in the first quarter of 2016. (Courtesy photo)
The new REI store at Pembroke Mall contributed to Virginia Beach’s new commercial construction in the first quarter of 2016. (Courtesy photo)

Virginia Beach saw a 14 percent increase in the value of new construction in the first quarter of 2016 versus last year, according a recent city assessor’s report.

About $43 million came in residential construction and about $32 million in commercial projects.

The report by City Real Estate Assessor Jerry Banagan broke down the number of new homes by their property value and listed the predominate neighborhoods in which they were built:

  • < $200,000: 5 homes, Legacy at Baker
  • $200,000 to $250,000: 36 homes, Cornerstone, Spence Crossing, Legacy at Baker, Infinity
  • $250,000 t0 $350,000: 19 homes, Spence Crossing, Kemps Village at Town Center
  • $350,000 to $500,000: 43 homes, Red Mill, Mirasol Community, Sajo Farm Condominiums, The Enclave at Princess Anne, and Ashville Park
  • $500,000 to $750,000: 24 homes, Estates at Munden Farms, Princess Anne and Ashville Park
  • > $700,000: eight homes, at Poseidon Beach and Bay Colony

Full year-end assessments typically reflect a 75-25 split of residential versus commercial for new construction, Banagan said.

Nearly a third of new home construction in the quarter landed in the value range of $350,000 to $500,000. Banagan said Virginia Beach residential construction has leaned away in recent years from the more extravagant price ranges.

“They’ve started building houses more in modest price ranges than a few years ago,” he said. “They’re not building a lot of $650,000 houses anymore. It still occurs, but the builders have migrated to more modest prices.”

There is an overall demand in the Hampton Roads market for dense, urban construction, said Andy Hansz, economic professor at ODU. Many people are moving back to downtown Norfolk, particularly millennials, he said.

But Virginia Beach still still wants suburban homes with a good amount of yard space, Hansz said.

“From what I’ve seen of Virginia Beach, you’re still kind of sprawling,” he said. “There are still a lot of families that want the half-acre, quarter-acre building lots, and it’s a little bit more spread out.”

The real estate market as a whole, has recovered significantly since the 2009 recession, Hansz said.

“So the market is kind of tightening up again,” he said. “Builders are starting to build houses and apartment complexes again. Prices have been going up.”

Here are Virginia Beach’s top commercial projects in the first quarter by value :

New buildings

  • Mini Storage on Virginia Beach Boulevard – $8 million
  • Virginia Urology –  $5.2 million
  • Office building on Bradford Road – $505,900
  • Take 5  on Laskin Road – $260,700

Renovation/Addition (top four)

  • Sears at Pembroke Mall – $12.5 million
  • Children’s Hospital of the King’s Daughters – $ 2.3 million
  • Checked Flag Toyota – $1.6 million
  • Lynnhaven Shopping Center East and West – $424,800

Have a story idea or news tip? Contact Business reporter Hillary Smith  at Hillary@wydaily.com or 757-490-2750.

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