Amid a burgeoning economy, Prince Edward Island is seeing greater need for residential units geared towards low- and mid-income households.
This is especially because over the last three years, residential property prices in the Island’s capital of Charlottetown grew much faster compared to even the nation’s hottest markets, according to the Canadian Real Estate Association.
The city’s home price growth of 38.5% during that period considerably outpaced other high-volume cities like Victoria (33.3%), Toronto (25.3%), Montreal (17.7%), and Vancouver (10.93%).
PEI Real Estate Association Greg Lipton cited the provincial nominee program as a major contributor to the trend.
The steady arrival of immigrants looking for homes of their own has grossly inflamed demand.From 2010 to 2018, the PEI has seen the entry of over 12,000 immigrants.
“They came with a lot of money and they wanted something new, and we didn’t really have a lot of new stuff at that time,” Lipton told CBC News.“New construction is very expensive.We’re up to close to $200 per square foot nowadays to get anything built.”
Compounding the issue is that PEI’s immigrant retention rate is so far the worst in Canada.This has a significant knock-on
In tandem with an institutional partner, Kevric Real Estate Corporation yesterday closed its purchase of a major downtown Montreal office tower located at 600 de la Gauchetière W., and in doing so hopes to capitalize on the city’s low commercial vacancy rate.
“The relaunch of Montreal’s economy has been very much dominated by the tech sector, multimedia sector, special FX sector and AI, so those are all key areas for us,” said Kevric’s President Richard Hylands.“Those potential tenants are located in suburban locations and are heading back downtown because their millennial workforce doesn’t want to move into the suburbs.”
The 28-storey tower, which has 710,000 square feet of leasable space, currently houses Raymond Chabot Grant Thornton, Investissement Quebec and National Bank, but the latter will be vacating for another location.In the interim, Kevric has an institutional lender on board until 2023, by which point its refurbishments—a new lobby facing Square Victoria and external building work—are slated to conclude.
Downtown Montreal is already a hub for the aforementioned sectors, as Hylands noted that south of 600 de la Gauchetière W.is Multimedia City, owned by Allied REIT, where many of businesses in those industries are housed.Kevric also
The governments of Canada and Prince Edward Island have committed $11.9 million to finance the construction of a 60-unit affordable housing complex in the PEI capital of Charlottetown.
The complex, called Martha’s Place, will be situated at 2 Acadian Drive in Charlottetown and will also house part-time social services from the Sisters of St.Martha.
Read more:PEI starts at historically high levels
Fifty affordable units will be leased to the PEI Housing Corporation, who in turn, will lease the units to people on their wait list on a rent geared to income of 25%.The remaining 10 units will be rented to the general population at market rates.
"The city of Charlottetown is committed to working with all levels of government, stakeholders, community organizations, and private developers to create more affordable and accessible housing units in the capital city,” said Charlottetown mayor Philip Brown.“Martha Place will be a great addition to Charlottetown's housing stock and will help us move towards a more comfortable vacancy rate.Upon completion of construction, the new residents will have a safe and affordable place to live and raise a family."
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Vancouver’s green building sector is getting a major boost, thanks to an initiative from the municipal government that intends to reduce greenhouse gas emissions in existing buildings 20% below 2007 levels and require buildings constructed from 2020 henceforward to be carbon neutral in operations.
The “Greenest City 2020 Action Plan” will catapult a city with one of the cleanest building codes in North America to the summit and create an abundance of jobs in its green building sector.
“Vancouver’s next challenge is to improve the environmental performance of existing building stock by focusing on retrofits such as insulation, heating and lighting system upgrades and energy-efficient appliances, as well as on how people operate buildings,” read the city’s Action Plan.“In British Columbia, we continue to have access to relatively inexpensive energy sources.In addition, the landlords and developers who make decisions about new designs or retrofits don’t often pay the utility bills and don’t immediately benefit from efficiency savings that can take time to show return on initial investments.”
Lane Theriault, president of Subterra Renewables, commends the City of Vancouver for both its lofty ambitions and being proactive, but noted that the last mile is always the
While a stronger national economy continues to bring greater purchasing power, Canadians continue to worry about housing and its associated costs, according to a poll commissioned for CBC News.
The survey found that during the second quarter of the year, fears about housing and living costs abound, with 32% of young Canadians admitting these as their major sources of concern.
These far overshadowed other important topics, including climate change (19%), health of self/family members (10%), and immigration (8%).
Such anxieties have defined many youngsters’ mental landscapes and fiscal plans to the point to seeking help:A Leger poll commissioned by FP Canada found that the “Bank of Mom and Dad” is helping not just with home purchases, but also with rental bills.
The analysis found that 24% of Canadians with adult children financially assisted their children in becoming first-time home buyers.Nearly half (48%) indicated that they plan on helping with home purchases once their underage children grow up.
Meanwhile, as much as 35% of Canadians helped pay for their adult offspring’s rent costs.More than one-third (36%) also stated that they are planning to help their children pay the rent once they decide to
In its latest comprehensive sector analysis, CBRE hailed four major Canadian cities as among North America’s 20 top tech industry destinations, a development that promises boosted activity for their commercial markets.
These were Ottawa (rank 19), Montreal (13), Vancouver (12), and Toronto (3).The metropolitan areas were evaluated in terms of supply and concentration of tech talent, market growth, quality of higher education, industry outlook, and several other factors.
Ottawa boasts of a steady stream of top-tier tech talent with its array of strong post-secondary schools.Moreover, it not only produces its tech gurus, but also readily attracts them with its highly developed infrastructure.To note, the tech sector is outstripped only by the federal government in terms of office space occupied in downtown Ottawa.
Meanwhile, Montreal is renowned for its world-class artificial intelligence research, which is strongly supported by its high-calibre universities, colleges, and tech incubators.
In recent years, major tech industry players like Amazon and Apple Inc.have been moving to Vancouver in earnest, establishing major facilities that have fed into intensified demand for the city’s offices and industrial space.
Finally, Toronto itself was surpassed only by Seattle and the San Francisco Bay Area in
Monies are typically pooled to finance dense, towering developments, but Foremost Financial has found value in smaller infill projects.
And by dispersing investors’ funds through roughly 150 projects, risk mitigation is top of mind.
“We want diversification,” said Ricky Dogon, chief compliance officer and vice president of investments at Foremost Financial.“We’d rather do 150 smaller deals than 15 larger deals.The effect that any one project can have on the fund is limited this way.If a mortgage makes 1% of the portfolio and gets in trouble, it’s negligible, but if that one project comprises 10% of the portfolio, it’s a different story.”
Foremost mainly finances townhomes and semi-detached, but is by no means limited to those built forms.It also focuses on the Greater Toronto Area precisely because it lends conservatively.
“More than 90% of our loans are in the GTA, and even further than that, around half of our loans are in the City of Toronto proper, and that’s a very purposeful strategy of ours,” said Dogon.“With the Green Belt, Yellow Belt, constrained supply, outdated zoning regulations, strong employment and population growth, that mix of really strong demand and really constrained supply will keep prices
Low availability levels in Toronto’s detached, semi-detached, and townhouse segments have contributed to a growing number of the city’s residents deciding to stay put.
According to an analysis of Census data by the Ryerson University Centre for Urban Research and Land Development, Toronto’s housing activity due to address changes has fallen noticeably by 6.3% from 2006 to 2016.
“In the last decade compared with the early 2000s we were building a lot more low-density housing, particularly single-detached housing.In 2002 we built 22,000 units and in 2016, the peak in the last 10 years, we built 11,000 units,” analysis co-author Frank Clayton told the Toronto Star.
Among Toronto’s home owners, moves fell by 7.6 % during that 10-year period.This is in comparison to the 3.9% reduction in moves among tenants.
The next largest drops in moving activity were markedly below Toronto’s levels.Calgary saw a 5.7% decline, while Vancouver had 3.8% less moves, followed by Ottawa, Montreal, and Edmonton.
Consistently elevated price levels might have contributed to the trend, as well.The latest edition of the Teranet-National Bank of Canada House Price Index showed that last month, Toronto home prices went up by 1.33% from May,
A new high-end residential development in Kelowna, BC will focus on the particular needs of active boomers choosing to downsize from traditional housing.
Earlier this week, developer Ariva Resorts announced its multi-million-dollar gated community located just five minutes away from downtown Kelowna, BC.
The 200-home development will be specifically marketed towards “zoomers,” the demographic comprised of physically active boomers.
Ariva Resorts founder Barry Johnson noted that the luxury development will answer the lifestyle needs of the zoomer cohort, which has so far remained ignored by the housing industry.
“We intend to change that thinking.This group is highly active.Health conscious and want to live life to its fullest.Kelowna is the perfect place to live with its excellent climate, wines and vineyards, outdoor activities and remains affordable,” Johnson stated.
Each of the properties will come with large outdoor decks, and offering will range from 1,250 to 1,760 sq.feet.Unit prices are expected to range from $500,000 to $1.9 million.
The development is scheduled to break ground in 2020, and construction will take an estimated four years.
Data from the Office of the Superintendent of Financial Institutions indicated that borrowing among older Canadians is not
According to a report from Central 1 Credit Union, Ontario’s housing market is forecasted to grow through 2021, and that includes the need for investor-driven condos in downtown Toronto.
“In higher urban markets, condos should remain a viable investment vehicle because there are a lot of people coming in who will need a roof over their heads,” said Central 1’s regional economist, Edgard Navarrete, the report’s author.
“Population growth is still at about trend, or even slightly above trend, over the next three years and that’s because, even though the housing market is at times relatively unaffordable in the region as a whole, the economy is still attracting a lot of people for work and to education institutions, particularly in urban centres.”
The supply of purpose-built rentals, townhomes and condo apartments has been on the rise throughout Ontario due to strong population growth.Navarrette added that Ontario’s population is forecasted to grow 1.7% this year, 1.7% next year, and 1.8% in 2021.
“With an influx of people coming in, there will be increased demand for condo apartments, townhomes and single-detached homes in secondary markets to meet that demand,” he said.
The Canada Mortgage and
The number of rental construction proposals in Vancouver’s periphery currently far exceeds that seen in the city itself, according to the Goodman Report’s 2019 Mid-Year Metro Vancouver Rental Apartment Review.
Since 2016, new proposals for rental-purpose buildings in the city have declined by 29%.Much of the new volume has manifested on the suburbs, which have enjoyed a sharp 147% increase in proposals.
“This telling difference reveals Vancouver’s failure to ramp up new supply opportunities,” the Goodman Report noted.“Also, don’t forget that four long years will go by before all these suites are available (even assuming they’re all actually built).Based on the 7,587 currently in the pipeline, that’s an average of only 1,896 suites per year.”
Significant government intervention has pulled the city’s rental transactions down by 50%, and overall value by around 27%, the study added.
Dollar volume has shrunk by as much as 62%, from $1.383 billion last year to $529 million this year.At the same time, cap rates in the City of Vancouver have gone up 50%.
“In the last two years, the City of Vancouver has gone from being the new rental supply sweetheart … to being absolutely outpaced by
By the end of this year, Regina’s aggregate home price over the whole of 2019 will decline by 4.9% annually, according to Royal LePage predictions.
In its latest House Price Survey, Royal LePage reported that the city’s aggregate housing price fell by 3.5% year-over-year during Q2 2019, reaching $321,122.
The aggregate value of two-storey homes saw the largest drop, with still a relatively minute 4.2% annual shrinkage to $388,981.
Bungalow values decreased by 3.5% to $293,631 and condos ticked up by 1% year-over-year to $227,542.
The figures dovetailed with the results of a recent survey by Australian-based financial planning website Finder.com, which found that Regina is “the least attractive” Canadian city.
The perception has only been magnified by the city’s reticence compared to its louder counterparts like Toronto, Vancouver, and Montreal.
“We’re a pretty humble community.What we do a poor job of is actually telling our stories and all the great quality of life we have here, the great entrepreneurial ecosystems we have here,” Economic Development Regina CEO John Lee told Global News.
“Studies like this remind us that we must do a much better job of telling our stories.”
Good news for borrowers—the interest rate used for mortgage qualification has fallen to 5.19%.
Previously at 5.34%, last week’s decrease marks the first decline since September 2016—the benchmark qualifying rate fell to 4.64% from 4.74%—however, it’s since been on the rise.Not only are global central banks looking to loosen lending policies, but Canada’s five-year bond yield, which impacts five-year fixed mortgages, has been falling all year.
According to RateSpy.com, the interest rate decline will allow a homebuyer making $50,000 a year to afford a home that’s $4,000 more expensive, and someone earning $100,000 a year can afford $8,300 more.
That undoubtedly bodes well for homebuyers, end users and investors alike.In tandem with the Bank of Canada’s decision to hold the interest rate two weeks ago, this marks the most auspicious period for buyers in 19 months.
“The Bank of Canada is in wait-and-see mode,” Alicia McDonald, principal economist at the Conference Board of Canada, told CREW.“We’re unlike to see the interest rate move on the variable side over the next few months.”
However, McDonald added that there’s only so much good news to go around.
“The relatively rosy picture they painted of
A Vancouver city councillor wants to lift restrictions on temporary modular housing built in single-family and duplex neighbourhoods.
OneCity councillor Christine Boyle told CBC News that the motion she plans to put before the city council would expand the land available for building critical affordable housing.
Modular housing is currently not permitted in RS and RT zoning parcels in Vancouver, with those areas reserved for single-detached houses and duplexes.According to CBC News, Boyle’s motion would ask city officials to look into allowing temporary modular housing in these zones.
Read more:Commentary:Housing affordability is in a state of extreme crisis
The motion also calls for a period of public consultation with residents before rezoning commences.However, CBC News reported that rezoning would allow the city to bypass lengthy public hearings that delay urgently needed housing.
Boyle said that she expects some pushback from residents but pointed out that many neighbourhoods initially resistant to temporary modular housing have since come around.
"Absolutely, on a site-by-site basis, there is nervousness and pushback from some neighbourhoods, and we've seen it die down each time and turn out to be okay,"
Toronto has been ranked as Canada’s most attractive city to move to, according to a survey from finance planning website Finder.com.
The survey asked 1,200 Canadian adults to rank the cities they would consider moving to.Ten percent of respondents said they’d move to Toronto in order to be able to buy a place, with Halifax being the second most popular choice (9.67%), particularly among those aged 35 to 44 (16%).Saint Catharines/Niagara came in third place (8%), followed by Ottawa (7.83%), Kelowna, London, and Kitchener (all 6.92%).Ottawa was particularly popular among young folk, with over a fifth of 18 to 24-year-olds saying they’d be willing to move there to buy.
On the opposite end of the scale, Regina is the city people are least likely to want to move to (2.67%), followed by Whistler (2.75%), Windsor (3.5%), Saskatoon (3.58%), and Oshawa (4.08%).
The survey also revealed that residents from the West Coast are more likely to move to buy a place, with well over half of Canadians from the region (59.83%) claiming they’d make the change.West Coasters are most likely to be open to moving to Kelowna (19.66%), followed by Calgary and Victoria (both 12.82%) and