Vancouver land squeeze pressures developers, investors

Vancouver land squeeze pressures developers, investors

Vancouver’s real estate market has always been driven by two groups: those who want to get in, and the insiders who want to make money. Sometimes the relationship between the two is symbiotic, and other times it’s one of codependency. But these days, both groups are scrambling as affordability and profit become ever more elusive for both landowners and those looking to secure properties as owners or tenants.

Western Investor

Alberta to lead in recreational property value increases

Alberta is expected to join Ontario in leading the country in recreational property value increases this year with Canmore near the top, according to a national real estate forecast. Vacation properties in Alberta are forecast to grow by 8.9 per cent this year, says a new Royal LePage report. That puts the average value of a recreational property in Alberta at $770,100, up from $706,950 in 2017.

CBC – Toronto Star – Victoria Times Colonist – Business In Vancouver

Northview buys apartment portfolio from Starlight

Northview Apartment Real Estate Investment Trust (NVU.UN-T) says it will acquire a 623-unit portfolio of six apartment properties from affiliates of Starlight Group Property Holdings Inc., for $151.8 million. Four of the properties are in Ontario, while the other two are in Halifax. The price represents a weighted average capitalization rate of 4.5 per cent, Northview said in announcing the transaction.

Property Biz Canada

Victoria housing meeting to tackle ‘urban tsunami’

Our world is facing an “urban tsunami” as population grows and people flock to cities, says former B.C. premier Mike Harcourt. Another 2.5 billion people are expected to be living on the planet in the next 30 years. It’s 7.5 billion today, “most of whom have flooded into the cities in the last 40 to 50 years,” Harcourt said. “It’s a huge reality, particularly in developing countries.”

Victoria Times Colonist

Sales underway at Toronto’s first ‘smokeless’ condo

Canadians across the country are closely watching the countdown to the legalization of cannabis this summer, with many businesses clamouring to join the multi-billion dollar pot industry.  A Toronto housing developer, however, is bucking the trend by selling the GTA’s first “smokeless” condominium. “We know that smoke moves between units in buildings, it’s impossible to prevent that,” explained Heather Tremain, CEO of developer Options for Homes.

CBC – Newinhomes.com

Cannabis in the multi-residential living space

On July 1, the new Cannabis Act will officially take effect, and no group of people is more concerned about the set of challenges legalization will likely bring than those managing (and living in) multi-residential communities. Odour complaints, health concerns, altered behaviour, mould, and increased electricity consumption are just some of the worries lobbyists have tabled in the fight for the right to regulate consumption.

REMI NETWORK

Toronto drop drives housing starts to lowest in a year

Canadian housing starts fell to the lowest level in a year in May on a decline in Toronto apartment and townhouses. Housing starts fell 9.8 per cent to an annualized 195,613 units, from 216,775 in April, Canada Mortgage & Housing Corp. said Friday from Ottawa. Multiple-unit starts dropped 15 percent to 124,957 units. Single-detached homes was the only segment to see a slight rise from April, with a 2 percent gain to 70,655.

Bloomberg – Ottawa Business Journal – Victoria Times Colonist – Canada Newswire

Even New Yorkers can’t afford a Toronto apartment

There’s only a handful of cities in the world that make living in New York seem cheap for middle-income people, places such as London, Sydney and Hong Kong. And then there’s Toronto, as 26-year-old JunJun Wu will tell you with a sigh. After almost three years in New York, she opted to move to Toronto for what she figured would be less-expensive housing.

Toronto Star – Toronto Star

IMF warns of multiple risks to Canadian RE prices

While the Canadian real estate market remains vigorous in large part due to robust market activity, the International Monetary Fund has warned of potential headwinds that could affect housing values – and might even trigger a domino effect that would ultimately harm the national economy. Noting real estate prices are a “key domestic risk”, the IMF specifically cited mortgage rates, price expectations, and unemployment as crucial metrics.

Mortgage Broker News

Higher rates, stricter mortgage rules curbing prices: BoC

The Bank of Canada believes higher interest rates and stricter mortgage regulations are successfully curbing lofty Canadian home prices and high household debt levels, but warns the vast size of outstanding debt continues to pose a key risk to the financial system. “The two main vulnerabilities we have been watching closely are showing continued signs of easing, which is encouraging,” governor Stephen Poloz said.

Globe and Mail – Toronto Star – BuzzBuzzNews – Globe and Mail (Subscription required)

Exodus of residents continues to plague Saskatchewan

Despite some 16,000 Canadians making the move to the land of the living skies, the province lost nearly 24,000 residents last year, leading to its worst net loss in over a decade. Since 2009, the number of Canadians moving to Saskatchewan has been in decline, and for the last five years it has resulted in a net loss for the province.

Global News

Builders can barely keep up with Montreal condo demand

More condos are being built in Montreal than ever before, but analysts say it’s still not enough to keep up with demand. In the last month, Montreal has set records in both condo sales and price. Experts say the surging interest in condos is driven both by local buyers and increasing interest from investors outside Quebec.

Montreal Gazette – Toronto Star

Brivia Group announces Montreal condo project

The Brivia Group, a fast-growing Montreal real-estate developer and investor, Monday announced the launch of a new all-in-one space condominium project: NEST Condos. Located in downtown Montreal, this new 11-storey residential building will be built at 1198 Crescent St., at the corner of René-Lévesque Blvd. NEST Condos will offer 97 condos consisting of studios, as well as of one-, two- and three-bedroom condominiums. The units’ surfaces will vary between 265 square feet and 970 square feet.

Canada Newswire

New apartment complex approved for Winnipeg

Neighbours in University Heights can expect a new seven-storey apartment complex at the “gateway” to their Winnipeg community in the near future. On June 5, Riel community committee approved a subdivision, rezoning, and variances to make way for a 105-unit multi-family rental complex at 30, 32 and 34 University Crescent at the intersection of Pembina Highway. The developers are Nigel Furgus of Paragon Design Build and Joel Rodrigues of JR Holdings.

Winnipeg Free Press

B.C. backs down on fixed-term rental rules

The B.C. Ministry of Housing of Municipal Affairs has backed down on a controversial amendment to the Residential Tenancy Act regarding fixed-term rentals. The amended Act came into effect May 17. The changes include the outlawing of fixed-term rental agreements, wherein a landlord requires a tenant to sign a contract stating they will vacate the premises on a fixed date.

Business In Vancouver

Market Conditions

What to expect in the second half of 2018

The Canadian housing market certainly got off to a cooler start in 2018 than many had predicted. Home sales and prices have continued to drop on a year-over-year basis, leaving many economists predicting that the market will be adjusting to regulatory changes for months to come. When will things start to heat up again? No one knows for sure, but experts have some ideas.

BuzzBuzzNews – Advisor.ca

Ottawa home prices reach record high in May

The average sale price of a home in the nation’s capital hit an all-time high last month, with transaction volumes remaining close to record levels. On Tuesday, the Ottawa Real Estate Board said its members sold 2,279 residential properties in May. While that’s down slightly from the 2,294 sales a year earlier, it’s nevertheless still the second-highest number of transactions in at least a decade.

Ottawa Business Journal – Ottawa Citizen

B.C. property markets starting to shift

Three months into B.C.’s experience with tighter mortgage-qualification rules, layered in with provincial real-estate tax changes, property markets are starting to shift. However, whether the provincial measures — the speculation tax on second homes, school surtax on expensive homes and raising the property transfer tax — are having a big, small or any impact on the housing market is an open question.

Vancouver Sun – Globe and Mail – Toronto Star – CBC

Most homes listed for sale in Calgary this year haven’t sold

Calgary’s real-estate market hasn’t exactly been hot for the past few years but it hasn’t been a disaster, either, thanks in large part to the resilience of the single-family home. Sales of condos were hit hardest during the recent recession, while demand for detached homes remained relatively strong. But 2018 is off to a particularly slow start: Most single-family homes put on the market aren’t selling.

CBC – CBC

Rates, limited inventory blamed for lacklustre Toronto market

May was supposed to be the month that the Greater Toronto Area’s real estate market returned to its usual spring ebullience. Instead, the numbers for May showed deflated sales and prices compared with May of 2017, which was the month that the market went into deep shock after the Government of Ontario introduced a 15-per-cent foreign-buyers tax and other cooling measures.

Globe and Mail (Subscription required) – Newinhomes.com

Mortgage and Finance

Homebuyers inflating income on mortgage applications: Study

A study of CMHC-insured mortgages appears to suggest Canadian homebuyers are overstating their income on mortgage loan applications. The study revealed incomes reported on mortgage loan applications were systematically higher than those reported to the Canada Revenue Agency (CRA). Since the subprime crisis, mortgage fraud became a subject of several inquiries in the U.S. 

Vancouver Sun

Seniors Housing

Seniors’ residences vacancy rate drops in Ontario, B.C.

The vacancy rate for seniors’ residences trended lower over the past year in Ontario and British Columbia, while increasing in Québec according to the regional Seniors’ Housing Reports released today by Canada Mortgage and Housing Corporation (CMHC).  The survey looks at two types of spaces: standard and non-standard. Standard spaces are also referred to as independent living.

Canada Newswire

Renovation, Repair and Maintenance

Napanee developers to turn factory into condo complex

An abandoned factory in Napanee, Ont., is getting a new life thanks to plans to build a sustainable new condominium complex on the 19th-century site. The Gibbard Furniture Company property was once a bustling manufacturing centre, building furniture sent around the world to adorn Canada’s embassies. A group of local developers want to convert the property, keeping the old façade and building a condominium complex around it.

CBC

Taxes and Utilities

Canadian sovereignty faces challenge over foreign-buyers tax

Canadian sovereignty is on trial in a lawsuit against B.C.’s 20 per cent tax on foreign buyers of residential homes. Jing Li — a Chinese citizen and international student who launched her case after using her family’s money to buy a townhouse in Langley in 2016 — is in effect challenging what some believe is Canada’s sovereign right to impose a targeted tax on foreign nationals.

Vancouver Sun

Legal Issues

Realtors ordered to drop action against Coquitlam condo project

A B.C. court ruling allows a Coquitlam condo project to be built, despite a  legal claim against the project by two real estate agents who say they invested $1.8 million in the development in an oral contract. Zhijian (Anna) Zhang and Nevin L. Low of NuStream Realty tried to sue developers Xiao Hong Huang, Ze Wen Zong and two numbered companies for a piece of the project.

Vancouver Sun

Affordable Housing

Despite new rules, affordability hasn’t improved

It’s been more than five months since the roll-out of new mortgage rules that forced even homebuyers with a larger downpayment to undergo a financial stress test. A lot has happened since then. Home sales have recorded double-digit drops in Toronto and other overheated markets. One thing that hasn’t changed, though, is housing affordability.

Global News

Cities, Towns and Urban Issues

Is infill housing the answer for Alberta’s biggest cities?

From skinny houses in Edmonton to ultra-modern duplexes in Calgary, infill development continues to be a source of controversy as Alberta’s biggest cities strive to encourage density. Both Edmonton and Calgary have in recent years adopted policies aimed at revitalizing inner-city neighbourhoods, reducing sprawl and building more diverse communities.

CBC

Toronto community council approves laneway suites

The city took a significant step toward changing its housing policy Wednesday, after a local community council voted to allow housing suites in the city’s backyard laneways. The Toronto East York Community Council voted unanimously to amend the city’s Official Plan and Zoning By-Law to allow laneway suites in Toronto and East York. The matter will be considered by the full Toronto council at its next meeting.

CBC – Narcity

Buying and Selling

Chinese investors inflating housing markets

Top residential real estate brokerages in the U.S. have been promoting homes to investors in China for years. Brokerage firms in Canada, Australia, New Zealand, and other countries have done the same. They have set up units in China and are partnering with Chinese real estate portals, such as Juwai.com. Warren Buffett’s Berkshire Hathaway HomeServices entered the fray belatedly a year ago with a marketing agreement with Juwai.com.

Business Insider

Millennials forced to get creative to buy first home

Patrick Howard, a 26-year-old financial adviser, recently purchased a two-bedroom, two-bathroom Cabbagetown condo, and said the possibility of doing his own interior decorating and renovations was a major selling point when selecting the property. With a little help from his parents and a home equity line of credit, Howard said he plans to be in this home for the long term.

Financial Post – Vancouver Sun – Vancouver Province – Globe and Mail (Subscription required)

Zillow will start posting Canadian homes

U.S. online real estate giant Zillow has announced it will post Canadian homes on its site through a direct listing feed from Century 21 Canada. That means Canadian real estate listings will be exposed to millions of consumers who visit Zillow every month, the company said in a Wednesday release.

Toronto Star – Canada Newswire

Other

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