Illustration of a coronavirus, created for the Centers for Disease Control in the U.S. A novel coronavirus is being blamed for the COVID-19 outbreak. (Courtesy Alissa Eckert, MS; Dan Higgins, MAMS / CDC)
COVID-19 (novel coronavirus) hasn’t yet put a major dent in the Canadian commercial real estate or housing markets, but a great deal of uncertainty remains surrounding the potential impact of the global outbreak.
“We are already beginning to see the impact of the virus with international buyers,” Sotheby’s International Realty real estate agent Paul Maranger told RENX. “Air Canada recently cancelled direct flights between Toronto and Hong Kong. With cancelled flights from Asia, and a possibility of even more to come, foreign buyers aren’t coming to look at properties.”
Sotheby’s agent Christian Vermast told RENX buyers hold back on real estate decisions in times of volatility and purchases are delayed.
“We expect a much more robust summer and fall market in 2020 and perhaps a quieter spring than originally forecasted,” he said.
Compared to such countries as China, South Korea, Iran and Italy, Canada has so far been relatively unscathed by COVID-19. Flu season traditionally ends in May and, assuming the situation stabilizes by then, Maranger is optimistic pent-up demand will burst into the housing market.
“We also have the advantage in terms of a great international reputation,” added Maranger. “Our vast forests, lakes and countryside give the impression of purity and freshness. In this case, those stereotypes can well work in our favour and help us sell more real estate.”
While Sotheby’s specializes in residential real estate, Vermast expects the commercial aspect of the market “will be hit harder and faster.
“People will avoid social gatherings and large groups. Hence businesses, such as restaurants and retailers, looking to expand may put that on the back burner until 2021,” he said.
“Those are pure investment decisions and are the first to suffer, whereas residential real estate decisions, which are more emotional, don’t experience the same shocks.”
Cushman & Wakefield report
Cushman & Wakefield in the United States issued a report on COVID-19’s effect on global property markets.
It said it is premature to draw strong inferences about the virus’ impact, but noted the commercial real estate sector is slower moving than the stock market and that leasing fundamentals don’t swing wildly from day to day.
So, it is less susceptible to shocks such as Monday’s global market downturn – fueled jointly by COVID-19 concerns and a global oil price dispute between Russia and Saudia Arabia-led OPEC nations.
The first quarter of the year is typically the weakest for commercial real estate metrics, so drawing conclusions about the impact of COVID-19 must be done carefully.
The report from the global real estate services firm said the recent lowering of already low interest rates should support consumer activity, which may result in increased momentum across the residential sectors in Canada.
“Demand for owner-occupied industrial product is also likely to accelerate against this backdrop, with any pause in office and/or leasing activity temporary,” the report stated. “As in other global regions, hospitality and retail sectors are dependent on Chinese tourism and/or supply chains, and so are liable to experience near-term disruption.”
The report said the COVID-19 outbreak will likely affect the North American retail supply chain as early as April, mostly due to slowing imports from China.
Retailers with shorter lead-time replenishment models could be among the first to experience supply issues. Dollar stores, consumer electronics, toys and the apparel categories all face potential disruption in the supply chain if the crisis drags on, according to the report.
While the industrial real estate sector is expected to remain largely resilient, certain types of manufacturers disproportionately dependent on Chinese production for inputs and final goods could also be adversely affected by supply chain disruptions.
Precautions being taken
Precautions are being taken in the real estate community to prevent the potential spread of COVID-19 through company guidelines.
“Open houses may be cancelled or curtailed, brokerages will likely introduce policies for hygiene and face-to-face meetings, and group office meetings could be reduced,” said Vermast.
“Fortunately for us, our industry is more mobile and adaptable than many other professions. Many realtors can easily work from home and be equally as productive as they are in the office.”
REALPAC response to COVID-19
REALPAC chief executive officer Michael Brooks issued a statement to members on March 6 that included links to resources and information on COVID-19.
While stressing the Public Health Agency of Canada has assessed the domestic public health risk associated with the virus as low, he said:
“As business and property owners, it is also important that our members are aware of how their organizations should be responding to COVID-19. Organizations will need to consider the possibility of limiting or prohibiting work travel, cancelling events, and allowing employees to work remotely.”
Brooks said REALPAC will continue to monitor the COVID-19 pandemic and keep members informed of new information and resources that become available.
Effect on real estate events
One of the most visible effects of the virus is the postponement of Informa Canada’s Vancouver Real Estate Forum and Western Canada Apartment Investment Conference.
The Vancouver forum will now take place at the Vancouver Convention Centre on Sept. 30. WCAIC will take place in an alternate format, but Informa has yet to release any details.
Informa is also restricting registrations for the two Vancouver conferences, as well as other Canadian Real Estate Forums and Conferences, to residents of North America.
Other regional events are also being impacted, including the Ottawa market outlook event hosted annually by CBRE. It has been postponed from its original date of March 26.
The commercial real estate services firm cited an “abundance of caution” for the move last week. There’s been no word yet on when it might be rescheduled.
COVID-19 and SARS
At this point in Canada, COVID-19 hasn’t reached the scale of the 2003 SARS outbreak, though health officials across the country are warning the situation could escalate. The number of confirmed COVID-19 cases as of March 9 was 77, in four provinces
There were 438 probable and reported cases and 44 deaths in Canada due to SARS.
Maranger said SARS had a short-lived impact on the real estate market and there was no precipitous drop in sales.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
