Photo Credit: Sean Colclough
In The News
October 14-18, 2019
Toronto & GTA
Quarter three of 2019 brought about a higher national rental rate than the same period last year, as well as when compared to the previous two quarters this year. Ontario topped the list of average rent for the month of September, coming in 17 per cent higher than the national average of $1,954.
Election promises from all major federal political parties are poised to increase values of properties, especially those in and around major cities.
The benchmark price of a home in Canada increased 0.5 per cent in September. British Columbia led the pack in both sales and prices last month.
A recent survey conducted by Royal LePage of 1,500 whom arrived in Canada within the past ten years has evidenced that newcomers are expected to purchase 680,000 homes in Canada over the next five years. New immigrants have a homeownership rate of 32 per cent compared to 68 per cent of all Canadians.
Toronto holds the highest spot in the country for average monthly rent for a one-bedroom despite being down month-over-month; whereas, Kanata tops the list for two-bedroom rentals clocking in at approximately $3,000 per month. Average monthly rent for a one-bedroom home in Toronto in September is $2,304
Greater Montreal experienced year-over-year price increases of 5.9 per cent in the resale market compared to the seven per cent in the city centre. On the one hand, residential real estate construction of owner-occupied homes decreased along with four per cent fewer condo units. On the other hand, purpose-built residential apartment construction exploded 127 per cent. Royal LePage predicts that average price of Montreal real estate will outpace the national average this year as prices remain subdued when compared to the national average.
A 2017 survey showed that 95 per cent of international students recommend Canada as a study destination. Compared to 2010, the number of international students increase 119 per cent and 20 per cent when compared to 2016. U.S. News and World Report ranked Canada as the top spot for education in the world in 2017. Data for the same year showed that international students spend an estimated $8 billion annually in Canada, including tuition, housing, and other living expenses. It is most notable in British Columbia which attracts 115,000 students each year.
The Canadian Real Estate Association (CREA) claims that the number of transactions rose 0.6 per cent in September from the same time last year and the price of benchmark home increased 0.5 per cent led by gains in British Columbia.
Only eleven luxury homes in Manhattan sold last week as the luxury tax continues to take a bite out of sales in thigh high-end segment of the real estate market. For the first time since 2013, co-op apartments outsold condos.
After reaching a twelve-month high in August, U.S. home building decreased in September led by a decline in multi-dwelling construction. Overall housing starts dropped 9.4 per cent
During the second quarter of this year, 17 per cent of homes sold in South Florida were purchased by investors. This is an increase of 1.3 per cent from the same time last year and much higher than the national rate of 7.7 per cent – “the highest rate of speculation since 2013.” Investments as defined by the study are sales with a corporate or non-individual’s name on the deed.
“A prolonged softening in prices and rents has made real estate more accessible to and affordable for owner-occupiers and tenants.” Quarter three of 2019 saw a decrease of 15 per cent when compared to the same period last year.
The median house prices across New Zealand reached a record high of $597,000 year-over-year, an increase of 7.3 per cent. This is indicative of the seasonal spring rise in consumer confidence.
Out of a total 331 million houses in India, 25 million were vacant according to 2011 census data.
Sales of private apartments in Singapore increase 13 per cent month-over-month in September. This marks the highest point in over a year.
Homebuyers in Hong Kong will soon be able to reduce the size of down payments in order to purchase properties up to HK&8 million (CAD$1,340,000) in a bid to stimulate the secondary real estate market involving resale properties. Borrowers will be able to put as little as ten per cent as a down payment on these purchases.
Consumer confidence surrounding the intent to purchase real estate in Singapore within the next six months has decreased in the first half of 2019 when compared to the latter half of 2018. Residents are taking a wait-and-see approach in hopes that rent values fall.
The Forum for People’s Collective Efforts, a national lobby of homebuyers in India, has demanded that the national government seize assets from developers for projects that have yet to be completed.