Alberta
The province of Alberta has large oil reserves and is the
strongest economy in Canada. As a result, it has been pulling in
vast numbers of migrant workers. Calgary saw rises in the number of
sales of 18% per month at the end of 2006; however, as predicted,
2007 saw a slowdown in the market due to a rise in the number of
properties becoming available, increasing interest rates and a lack
of affordability. House prices have started to decline and
affordability has improved. Edmonton is also witnessing a
decelerating market as the number of new housing units with
construction (known as 'housing starts') are slowing dramatically.
The average price for the two cities start at around £132,696 (US$
260,974) for a standard apartment with family homes costing from
around £198,416 (US$390,319). Interest from buy-to-let investors
hoping to cash in on the increasing numbers of workers moving to
the region may also be fuelling rises. The slowdown is not
heralding a 'boom or bust' scenario, some agents are keen to
impress, merely bringing prices back down to create a buyers'
market.
Buy-to-let investors may also care to look northwards for a
brand new investment potential. The town of Fort McMurray is the
residence of many of the workers employed to work on the gigantic
oil sand deposits nearby, and as a result of the huge economic boom
the town is witnessing there is a deficiency in housing for the
increasing worker population. It is estimated that 14,000 houses
will be needed over the next five years, and with that in mind a
new master planned community has been designed to accommodate the
rising population. With estimated rental yields of 9% -13%, the
town offers more investment potential than many other Canadian
areas, given the slowing market conditions.
Toronto
The revitalisation over the past five years of what was already
an important industrial and commercial hub has increased interest
in Toronto. Property sales figures in the city reached record
levels in 2005 with prices rising by 6-10% across the centre and
suburbs. However, by 2006 this dropped to around 5.4% and early
2007 saw lower gains of 4-6%. Early 2008 statistics show an 11%
drop in sales figures from twelve months ago. Nevertheless, with
increasing migration from rural to urban centres across the
country, the city is still somewhere investors should consider. The
average price of Toronto property is £177,125 (US$381963), with
standard apartments starting at around $150,000 and rising to over
$1m for property in the revitalised waterfront district. Houses
also range widely, depending on location from around $250,000 in
less sought-after suburbs up to $2.5m for executive homes in
Midtown Toronto. There is now a tendency for Toronto buyers to move
out of the city centre towards pleasant suburbs as issues of
affordability rise. A new land transfer tax, implemented in early
2008, looks set to double Toronto homebuyers' fees.
Quebec Province
Certain areas of Quebec have become hot spots over recent years.
Though not experiencing the gains of other major cities, at the
start of 2007 Montreal and its suburbs saw rises across the board
in almost all areas with wide fluctuations in prices, depending on
location. The average price of a standard Quebec apartment is
£90,471 (US$177,939) with standard town houses costing from around
£98,283 (US$193,061) and large family homes costing from around
$450,000 to well over $1m in sought-after areas.
The Laurentian Mountains are around an hour-and-a-half from
Montreal and are becoming popular for weekend homes. Mont Tremblant
is a ski resort that has drawn a huge amount of investment recently
and recent purchases by celebrities have increased its cachet.
Prices for studio or one-bedroom apartments start at around £60,985
(US$120,000); condos and chalet prices start from £150,000
(US$295,150) whilst larger apartments in popular developments sell
for between £115,000 (US$230,000) and £203,000 (US$400,000) on
average. Property in more rural, waterside or non-resort locations
sells for a wide variety of prices depending on size, location and
outlook. Wood and shingle cabins, sometimes with lake frontage, can
still be found for less than £100,000 (US$200,000), with more
upscale properties retailing from upwards of around £150,000
(US$300,000). There is a big population of wealthy investors moving
to the area, which is sending prices for large properties on
several acres of land into the £2.5 million (US$5million
bracket).
Whistler and Vancouver
The city of Vancouver has long been popular for having a vibrant
culture, fast-paced business environment and beautiful
surroundings. As a result it also has some of the costliest real
estate in Canada. Prices range from £224,000 (US$441,000) for a
standard townhouse and from £153,900 (US$302,945) for standard
apartments. The apartment market saw rises of more than 10% in
early 2007, while housing saw gains of 8-19%. Vancouver was voted
the joint third best city in the world to live in, according to the
2007 Quality of Living Survey by Mercer Consultings.
Though some agents have reported flat sales for the past few
years in Whistler, the resort is reputedly becoming more sought
after again, thanks to the 2010 Winter Olympics. Appreciation may
have slowed but there is little available for under £100,000
(US$200,000). Houses cost from around £150,000 (US$300,000) for
something small in a less-desirable area, going up to several
million dollars for larger properties in sought after mountain or
lakefront locations. Vancouver has just seen a 1% increase in
property tax, which will effectively become a 3% increase due to a
tax redistribution. There are warnings that 2009 will see an
increase of up to 11%.
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