Milan and Seoul both saw record amounts of real estate investment in 2019. But with the emergence of coronavirus, their residential markets are taking a big hit. (Credit: ANDREAS SOLARO/AFP via Getty Images; JUNG YEON-JE/AFP via Getty Images)
The year 2019 was a great one for real estate in Milan, the economic engine of Italy.
Office leasing hit an all-time record of 481,100 square meters (5.2 million square feet), and office investment reached an all-time high of 3.6 million euros. On the residential side, Milan stood out as the only large Italian city to see rising home prices, thanks to a wave of new luxury development.
“Why Is Milan’s Real-Estate Market So in Fashion Right Now?” the Wall Street Journal asked three weeks ago, when Italy still had only one confirmed case of COVID-19, the disease caused by the new coronavirus. But things changed quickly.
On Monday, the Italian government announced that it would be extending quarantine and travel restrictions across the entire country — and not just the most heavily hit areas in the north, including Milan and Lombardy. The World Health Organization officially declared the virus a pandemic on Wednesday.
Data shows that the rapid spread of the epidemic across Italy has already impacted the local real estate market. Home sales in the first two months of 2020 were down 7 percent year-over-year in Lombardy, and down 12 percent in Milan, according to Scenari Immobiliari, an Italian real estate research institute.
“In the month of March a very strong reduction is probable, which is already evident in visits to apartments for sale which are less than half of what they were a year ago,” Scenari founder Mario Breglia told local media.
Breglia added that demand remained high, and he expected a half-year “rebound” after the emergency. “There are no pressures on prices, and on the contrary we have observed a slight rise in rents in Milan.”
Meanwhile, the impact on commercial real estate is less clear. “Commercial real estate sector is not the stock market. It’s slower moving and the leasing fundamentals don’t swing wildly from day to day,” said a Cushman & Wakefield research report from last week — prior to Monday’s plunge, the worst in 11 years.
The Italian government has introduced a moratorium on mortgage and other debt payments during the emergency to help consumers and businesses cope. High debt loads may pose a major risk to real estate firms and other businesses in the event of a prolonged crisis.
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K-Hole
Italy has recently surpassed both South Korea and (officially) Iran to become the country with the most coronavirus cases outside of China.
In South Korea, where the outbreak also took a turn for the worse three weeks ago after dozens of members of a fringe religious group were diagnosed with the virus, real estate brokers have seen business dry up dramatically.
The country’s apartment market saw an average of just 458 deals per day nationwide in the first nine days of March, compared to 2,272 deals per day in December, local business outlet ChosunBiz reported Wednesday, citing government statistics. That comes out to a 80 percent decline in deal volume.
The decline has been even starker in the densely populated capital of Seoul, where daily deal volume has fallen by 90 percent from 309 deals per day to just 31.
“Business is frozen as more people are postponing moving plans because of the coronavirus, or are hesitant to show their homes to strangers out of fear of contagion,” real estate broker Mr. Park, whose office is in Seoul’s central Seongdong district, told ChosunBiz.
Across the river in the high-end Gangnam district, many brokerages have closed their doors. “Even the elderly folks in the neighborhood who would come by to chat have stopped coming,” an anonymous broker in the area said. The South Korean government’s December decision to ban mortgage lending for high-end apartments hasn’t helped business either, he added.
According to data from Korean rental startup Dabang, rents for one-room apartments in university areas in Seoul fell 2 to 9 percent last month compared to the month before, with landlords that cater to foreign exchange students having trouble finding tenants during what is usually a peak moving season.
It has also been a bad time to enter the real estate business in South Korea, as the required professional training programs for new brokers have been on hold for three weeks.
On the commercial front, 2019 had been a banner year for investment sales in Seoul, with transactions hitting a record high of 16 trillion won (about $13.5 billion), according to CBRE. The outlook for 2020 remains unclear.
The coronavirus outbreak in South Korea had showed signs of coming under control in recent days, but on Wednesday local health officials reported the country’s largest single-day increase in new cases — 242 — as well the discovery of a major cluster at a call center in Seoul.
Meanwhile, real estate players in the U.S. are largely in wait-and-see mode when it comes to the coronavirus’ impact. But New York’s housing market is already showing early signs of unease — while March is typically the busiest month of the year for Manhattan property listings, listing inventory has only grown 2.2 percent through the month’s first nine days.
“Potential sellers [have been] holding back since the beginning of the month of March,” Jonathan Miller of Miller Samuel said. “I believe the virus is the likely cause — there is a hesitancy to list at the moment.”
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.
