How one builder ensures properties remain good investments as the housing market stabilizes.
Home is many things: a place to create memories, a reflection of identity, a sanctuary from the world and for most people, the biggest investment of their lives.
Earlier this summer, The Economist Intelligence Unit’s 2022 Global Liveability Index ranked Toronto in the top 10 most liveable cities in the world. But an investment in a home in the Greater Toronto Area (GTA) now involves careful risk assessment. The Canadian Real Estate Association’s recent monthly reports show activity returning to pre-pandemic levels as the housing market corrects itself following two frenetic years of record-setting sales prices and volumes.
City developers are experts in risk. Millions of dollars are at stake with every project, even in a robust economy. Sam Mizrahi, president and founder of Mizrahi Developments, takes pride in honing his expertise. He is currently building The One, Canada’s first $1.5 billion tower at the corner of Yonge and Bloor. When he shifted from constructing single-family dwellings to building boutique luxury midrises in Toronto’s Yorkville neighbourhood in 2011, uncertainty clouded the economy in the aftermath of the 2008 financial crisis. But he carefully studied the market and went ahead. All the units in those projects, 133 Hazelton and 181 Davenport, were sold before construction began.
His years of experience in Toronto, along with the insights of real estate professionals who have weathered this city’s ups and downs, yield wisdom about how to best market-proof your real estate investment, no matter what the market brings.
Remember location is an emotion
Mizrahi understood that Yorkville was a desirable location, but he also says it’s critical for buyers to understand why people get emotionally invested in their communities.
“The purchase of a home is always emotionally driven,” says Mizrahi. “My approach has always been to identify neighbourhoods that are mature and popular, then listen to the local community. In this way, we start to understand the underlying emotions of why a place is favoured as well as learn how we can add value to an area not just for potential homebuyers but also for the people who already live there.”
Since its launch in 2017, The One has remained a valuable investment with no price fluctuations.
By adding value to the community, a builder can help ensure the resilience of its properties in those neighbourhoods. That can be seen in Mizrahi’s The One, an iconic superstructure designed by Foster + Partners that will be the tallest building in Canada with ample amenities for residents and visitors alike.
Identify scarcity in the market
The pandemic has created a pent-up demand for a downtown social life, with access to culture, cinema, restaurants and entertainment. Proximity to public transport is highly valued as a result, says Paul Maranger, broker and senior vice president of Sotheby’s International Realty in Toronto, but there’s limited land on the subway lines. “The city is confined by the lake to the south and there’s a mindset that the northern edge is the 401,” he says. The increase of density around TTC stops is a reflection of that demand, which also helps explain the consistent value of The One, located at the epicentre of midtown with underground access to the nexus of north-south, east-west subway routes.
Space is clearly at a premium along the spine of the TTC. The number of residences in The One is only 416—a tribute to Toronto but also a decision to maximize a sense of peacefulness with a smaller population in the tower. By comparison, other downtown high-rises of a similar height offer as many as 2,000 units.
Invest in the top tier of a category to avoid buyer’s remorse
Home buyers comparison shop, whether they are actively shopping or just keeping an eye on the market. Even if they fall in love with a home immediately, they still tend to look at other options to ensure that their emotional response makes practical sense as well. It’s an easier decision if there are few similar options for them to compare against.
A proven strategy for owning a solid investment property is to make sure it doesn’t pale by comparison. That is, it’s not the same or worse than most other comparable homes. Sellers with listings in the top 10 per cent of their category will always attract buyers. “It’s mediocrity in the mass market that languishes,” says Maranger.
Generous space, indoor and outside, is another factor that creates investment resilience at The One.
That speaks to why residences at The One have not experienced a price drop, and are now more than 80 per cent sold. “There is nothing to compare them to,” explains Katy Torabi, a realtor with Royal Lepage. “These residences are in a category of their own.”
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.
