Real eState

Developers still upbeat on Montreal condo, apartment market – Real Estate News EXchange

Published

4 years ago

June 16, 2020

Artist’s conception of the Maestria residential towers in Montreal. Devimco’s Marco Fontaine said the twin condo towers appeal to European clients, among others, who are taking advantage of a favourable Canadian dollar exchange rate. (Courtesy Devimco/Fonds FTQ/Fiera)

The demand for new condos and rental housing has remained stable in Montreal despite the COVID-19 pandemic, but that picture could change if the unemployment rate remains high and immigration rates fall.

Those were some of the conclusions from three of the city’s major residential developers at a June 12 webinar on real estate development and the residential market in Montreal. The event, presented by the Institut de développement urbain du Québec (Urban Development Institute of Quebec), attracted about 600 viewers.

Marco Fontaine, vice-president, real estate development, residential and marketing at Devimco, said the outlook is for uncertainty in 2020 and optimism for 2021.

“If we succeed in flattening the curve, I think the market will pick up faster than we think,” he said. “Overall, the demand is still there. That’s very positive.”

Fontaine said Devimco president Serge Goulet challenged salespeople a few weeks ago to sell 100 condo units by mid-September. That goal should be reached by mid-July.

“It’s very good news. The market is there. I believe good projects can go ahead without any concerns.”

Mixed results at Devimco projects

He noted, however, condo sales have been harder to finalize at the Quartier Solar Uniquartier mixed-use project in Brossard on the South Shore, which is targeting second or third buyers.

The buyers, who are often empty nesters and baby boomers, have to put their current houses up for sale, which has made them more reticent.

Sales are going well at the 264-unit Auguste et Louis condo development in the Quartier des Lumières, next to the current CBC/Radio-Canada headquarters. “We’re really surprised.”

There has also been strong interest in the Maestria project (with 58- and 61-storey towers) from European clients, who are taking advantage of the favourable Canadian dollar exchange rate.

Laurence Vincent, co-president of Prével, said reservations were high for two new projects it launched in February, Quartier Général in Griffintown and Esplanade Cartier near the Jacques Cartier Bridge.

By April, clients were still on board but had lots of questions. Still, “sales, for the most part, were converted.”

Although sales are taking longer to complete, interest has remained strong and buyers are asking few questions about prices.

“Clients find prices to be very acceptable,” she said. “Our products have a very good quality-price ratio. (They’re) not excessively luxurious. People feel they’re getting value for their money.”

Who is buying Montreal condos

Vincent said, in general, there are three types of clients for its projects in the coronavirus era:

* The first group thinks confinement will end soon and we’ll start to consume and live like before. “I have money, I’m not afraid” is their view;

* Second, there are the cautious people who look forward to life getting back to normal, but don’t want to put themselves at risk in terms of making the condo buying leap;

* The third group is comprised of people who are scared about going back to normal – and are prepared to take money out of the bank and hide it under the mattress.

The first group is comprised mostly of young people, for whom “it’s life as usual. Nothing has changed for them.”

Middle-aged people, primarly empty nesters who are more cautious about buying, make up the second group, and the third is older.

The scenario is similar to what’s happening in Asian and European markets which are emerging from confinement, Vincent said.

Montreal to remain “desirable city”

Vincent downplayed predictions people will move away from cities as a result of the pandemic. There have always been people who have predicted the end of cities, but the forecasts have not come to pass.

She said if there is a small exodus to the suburbs or the countryside, it will be temporary or by people who already planned a move.

The pandemic should not serve as an excuse to return to old habits of urban sprawl and agricultural dezoning “because it’s not a viable model,” Vincent added.

Stéphane Côté, president of DevMcGill, said Montreal’s advantage is that it’s a medium-sized city with relatively easy access to nature.

“In that respect, it will always be a desirable city.”

The company sold about 30 per cent of Phase 3 of Tak Village – a Scandinavian-inspired condominium tower and townhouses project in Rosemont – in two or three weeks after it closed its sales office and shifted sales online.

Côté said doing things virtually can work in unexpected ways.

For example, DevMcGill received court permission to conduct an online meeting to transition a new condo to its board of directors, one of the first times this has been done in Quebec.

“It worked,” he said. “We’re finding new ways of doing things, ways that will stick.”

Fontaine said he is optimistic about the future, but identified four risks that lie ahead: The possibility of a second wave of COVID-19, the potential for high unemployment, the fate of government support programs, and the impact of the pandemic on immigration – Montreal was expected to have between 41,000 and 44,000 immigrants in 2020, which may not be reached.

RELATED ARTICLES:

* Winnipeg’s Globe snaps up $60M Montreal apartment

* Booming tech, student sectors drive Montreal multiresidential

* Manulife acquires new EQ8 apt. buildings in Montreal

* Prével launches Phase 1 of Montreal’s Esplanade Cartier

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Real eState

Greater Toronto home sales jump in October after Bank of Canada rate cuts: board

Published

4 days ago

November 6, 2024

Anne Joseph

TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.

The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.

The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.

“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.

“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”

The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.

New listings last month totalled 15,328, up 4.3 per cent from a year earlier.

In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.

The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.

“I thought they’d be up for sure, but not necessarily that much,” said Forbes.

“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”

He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.

“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.

“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”

All property types saw more sales in October compared with a year ago throughout the GTA.

Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.

“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.

“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”

This report by The Canadian Press was first published Nov. 6, 2024.

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Homelessness: Tiny home village to open next week in Halifax suburb

Published

2 weeks ago

October 24, 2024

Anne Joseph

HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.

Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.

Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.

The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.

Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.

They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.

The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.

This report by The Canadian Press was first published Oct. 24, 2024.

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Here are some facts about British Columbia’s housing market

Published

3 weeks ago

October 17, 2024

Anne Joseph

Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

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