Vancouver-based real estate giant Century 21 will expand in B.C. over the next three years - presuming that Premier Gordon Campbell returns to office.

Company officials say the firm will open six new franchise outlets this year and 20 in total by 2008 in its home province.

And Gary Charlwood, chairman of Century 21 Canada Limited Partnership, which holds the Canadian franchise rights to the world's largest real estate organization, is banking that Campbell will become the first B.C. premier in 22 years to be re-elected, on May 17.

He urged a Vancouver Board of Trade luncheon last week to return the Liberals to power.

Gary Charlwood

"I think this is a great time to be conservative, and that means voting Liberal," he quipped.

He noted that Liberal tax cuts and reductions in regulations have made a difference to the economy, despite external factors such as low interest rates and high oil prices.

He elaborated in an interview with Business Edge, saying a change in government might "spook" the market.

"The public is very fickle, and money is very fickle, and money likes consistency," he said. "So I think it will be a very bad move for B.C. if there's a change of government. Things are going well currently."

Century 21 recorded sales of $940 million at its 33 B.C. offices in 2004 and aims to break the $1-billion barrier by the end of this year. The company ranks in the top three in its sector in most provinces, but it lags behind in B.C.; Charlwood estimates it is third or fourth in the market with Royal LePage, behind ReMax and Sutton.

A text of Charlwood's speech stated B.C. was the company's "weakest link nationally," but he stopped short of describing it that way while speaking.

"It's been a struggle because we simply haven't put the resources behind it in the last 10 years because we haven't felt very confident," he added in the interview.

In past years, Charlwood said, the company would open "maybe one or two" offices in B.C. per year.

Century 21 recently opened a 90-agent office in Surrey and has hired a franchise-sales executive who will target independent real estate companies and individual real estate agents in the Lower Mainland, while also growing markets in other cities where the company has more of a presence.

"(B.C. is) a major focus for us because we feel confident," said Charlwood. "We continue to think the province has got some great times ahead and we want to expand and grow a bit from there. Before it was more meaningful for us to put our resources behind Ontario."

To grab more market share in its home province, he said, Century 21 must invest more capital, but declined to say how much "for competitive reasons."

Patrick Quinn, Century 21's vice-president and director of franchise services, said the firm is trying to grow its business in B.C. more aggressively than ever, because the provincial real estate market has recovered much more slowly than its rivals.

"British Columbia, over all, has the best opportunity for potential growth," Quinn said in an interview. "We started our recovery in the Canadian real estate market about three years ago. We're going into Year 4 now, and that is about a year to two years behind the rest of Canada."

Charlwood, who is also the founder of Uniglobe Travel, says he once contemplated moving Century 21's head office out of B.C because of its high taxes and politics, but didn't because he loves the province. (Uniglobe executive members were relocated to the U.S., but have since returned.)

Most of the business members attending the luncheon appeared more concerned about real estate prices than either Century 21's growth or politics. Charlwood predicts real property values will remain strong as B.C. prepares to host the 2010 Winter Olympics, but the red-hot market will eventually cool off.

"We've seen some very appreciable price increases," said Charlwood. "I think that's going to slow down a little. But I would still see some appreciable increases. I hate to make a prediction. It's very difficult, but my guess is it will be north of 10 per cent, which is nice compared to other places you could put money."

But Phil Boname, a Vancouver-based real estate analyst, said he's confused by Charlwood's prediction that the market will slow down, because prices haven't dropped that much. In some places, they haven't dropped at all.

There have been recent reports of people lining up for days to purchase homes under development, while some agents have reported sales of more than $100,000 above list price on high-end homes in Vancouver's affluent west side.

"In general, we think real estate prices will increase across the board," said Boname, president of Urbanics Consultants Ltd.

But Boname said he's not surprised by Century 21's plan to open more offices. "Century hasn't been as high performing as some of the other companies," he says. "It's catch-up for them if they want to capture market share."

Boname also agreed the Liberals are moving the economy in the right direction, but says he believes they have had no influence over low interest rates or increases in exports to China and other Asian countries.

"No one should argue the provincial government hasn't been doing the right things," said Boname. "Can they take all of the credit? No."

Century 21 Canada also holds the brand's franchise rights for the Asia-Pacific region, excluding China and Japan, and expects to open 1,000 new offices there over the next five years.

(Monte Stewart can be reached at monte@businessedge.ca)