Archive for month: September, 2019
A new report from RBC Economics focuses on the rental housing deficit which is set to intensify in the coming years, especially in Toronto and Vancouver.
The report says that supply of new rental homes will need to pick up pace to meet future demand; in Toronto the pace must double. In the meantime, lack of supply is leading to “uncomfortable highs” for rents – which means those hoping to save up to buy a home are squeezed even further while high home prices have “crushed some homeownership dreams.”
RBC says that big cities must increase rental supply to have any hope of tackling affordability issues.
It notes that there are some positive signs in some cities, such as Montreal and Vancouver where has new waves of supply underway; and in Calgary where there are elevated rental vacancies.
But in Toronto, the report says supply will not come close to demand in the coming years and calls for specific targets and incentives to address the issue.
Deficit needs action
RBC Economics’ estimates of the supply needed to balance out supply and demand in the major markets as of late 2018 are: a deficit of 9,100 rental units in Toronto, Montreal had a 6,800-unit deficit and Vancouver 3,800 units. Calgary carried a small surplus of 300 units.
This will be exacerbated by the estimated increase in renter-households of 22,000 in Toronto and 9,400 in Vancouver over the medium term, with Montreal averaging 8,200 per year on average.
The report estimates that Toronto will need 28,600 new rental units on average over a two year timeframe with 11,600 in Montreal, 11,300 in Vancouver and 4,150 in Calgary.
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By Steve Randall | last updated on the 26 Sep 2019
Late last week, Greybrook Realty Partners and Marlin Spring announced the acquisition of a Montreal portfolio comprised of seven apartment buildings with a total of 324 rental units.
Said properties are situated close to restaurants, shops, hospitals, grocery stores, two metro stations, the Université de Montréal, and hospitals like the Jewish General Hospital.
Greybrook Realty and Marlin Spring stated that they will also be in charge of renovating suites and improving the common areas across all the buildings.
“The close of this acquisition brings the total number of units within our value-add portfolio to 774. With asking rents currently below comparable products in the area, we believe an opportunity exists to improve both the product offering and revenue through execution of a value-add program,” Greybrook Realty executive director Jared Berlin said.
“With the success of our existing Montreal portfolio, supported by the City of Montreal’s strong rental market fundamentals, we believe these assets are a natural fit in our growing Quebec Multi-family Portfolio” Marlin Spring CFO Elliot Kazarnovsky added.
In recent years, strong population growth – especially immigration – has spurred sustained growth in Montreal’s rental housing market.
Figures from IPA’s Midyear Canadian Multifamily Investment Forecast Report indicated that by the end of June 2019, the city’s average rent increased 4.1% year-over-year, up to $797 per month. Average prices grew by 6% year-over-year, up to $154,400 per unit.
by Ephraim Vecina | 23 Sep 2019
Montreal’s residential real estate market has grabbed all the headlines in recent years, but the city’s commercial sector is beginning to burgeon and it, too, will get its due.
Toronto-based Michel Durand, President and CEO of Multi-Prets & Mortgage Alliance Commercial, says that Toronto and Vancouver cast a pall on Montreal, but as those cities have begun topping out, the Quebecois metropolis is attracting international attention.
“The Montreal market is finally seeing its share of the Asian influence, which we saw in Vancouver about 10 years ago and then it moved to Toronto when things got overcrowded and overpriced. Now we’re seeing a lot of development money moving into Montreal, which we’ve witnessed over the last three years and which, I think, is a trend that’s going to stick for at least the next five years,” said Durand.
Of course, in Montreal, it began with an explosion of interest in residential, and with its success has come the next, if more lucrative, phase of the city’s real estate development.
“Residential is a catalyst for commercial development,” continued Durand. “Once investors and developers get a taste of how easy it is on the residential side—we’ve seen a lot of condos and towers go up from Asian investors—which is where they start, then they go into commercial development, like office buildings and new retail plazas, by partnering with local players.”
Likely contributing to Asian interest in Montreal is the city finally has direct flights to Mainland China, added Durand.
“Flights would go China-Vancouver and China-Toronto, and that’s where the money stayed,” he said, “but a few years ago flights started going to Montreal directly and we immediately saw the effects on the commercial real estate side, which also includes residential—transactions that are completely investments.”
In tandem with an institutional partner, Kevric Real Estate Corporation recently announced its purchase of a major downtown Montreal office tower located at 600 de la Gauchetière West, for which it has big plans. The purchase is also the latest sign that downtown Montreal’s commercial real estate sector is getting a boost the likes of which it hasn’t seen since a bygone epoch in the city’s history when, as Canada’s largest city, it was the country’s economic engine.
In addition to updating 600 de la Gauchetière W.’s architecture and building a new lobby facing Square Victoria, it will try to attract companies from Montreal’s up-and-coming industries, including technology, knowledge, and media.
“This important acquisition allows Kevric to expand its offering of commercial real estate spaces for organizations which aim to distinguish themselves and will ensure the company’s growth in Montreal for years ahead,” said Richard Hylands, Kevric’s president. “Kevric is proud to continue fueling the evolution of downtown Montreal into a world-class Canadian city.”
by Neil Sharma
31 July 2019
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