Photo Credit: Martin Sanchez
In The News
October 21-25 2019
Toronto & GTA
The current geopolitical climate around globe will continue to keep interest rates low, which will impact local real estate prices over the next few years, according to the CMHC. CMHC also predicts an increase in national sales and housing starts through 2021. Condos are expected to remain top of mind for first-time homebuyers and investors alike.
In a bid to save money and generate revenue for the province of Ontario, Doug Ford’s government will stock of unused and underutilized real estate, in addition to reducing office space.
After the initial bid to purchase outstanding shares in Hudson’s Bay in June of this year, Chairman Richard Baker increased the purchasing price offering per share to $10.30 to take the company private. That is a 62 per cent premium over the company’s stock price in June.
An influx of young professions and an increase in demand for short-term tourist rentals, investors and landlords are repurposing apartments or turning them into condos.
U.S. resale transactions decreased 2.2 per cent in September despite lower interest rates. This decrease may be correlated to the nearly six per cent increase in median price from the same period last year, which marked 91 straight months of year-over-year value appreciation. At the end of September, there was 4.1 months of inventory across the U.S.
In a bid to save money and even earn a return on out-of-state education, parents are purchasing condos for their kids. For students without scholarships, this decision saves parents room and board and may lead to experiencing appreciating property values
Buyers of new construction apartments in major Australian cities are taking possession as values are now lower than their original contract price. CoreLogic reported that has shown nearly one-third of apartments purchased pre-construction in Sydney are worth upwards of ten per cent less than what was first agreed upon between buyer and developer. Over in Melbourne, nearly 53 per cent of units are valued below their original purchase price. Part of the reason is an oversupply in the high-rise segment of the real estate market that is outstripping demand.
Both new and resale home prices have increase in first-tier through to fourth-tier cities in China. Real estate investment has increased double digits in the first nine months of 2019.
Several investors from Hong Kong seek safer economies to invest and have turned to Thailand. Unlike Chinese buyers willing to purchase condos away from central business districts, investors from Hong Kong aim to purchase closer to city centres due to the ease of travel for foreigners.
A parking spot in Hong Kong’s financial district sold for CAD$1.269 million, or $9,434 per square foot. That is approximately 37 per cent higher than the average price of all properties in the GTA as of last month.
The Australian median house price increased 2.7 pre cent in the past three months marking an increase of $20,000 in that period. As a local market, prices in Sydney spoked nearly $50,000 in the same timeframe. Despite property value appreciation, the national index remains 6.8 per cent below the October 2017 peak.