Development land sufficiency and price are considered to be a rising problem in Canada’s major cities.
Land sales and market conditions were the main topic of the Land & Development Conference at the Metro Toronto Convention Centre which took place on May 15th. Land price was one of the main topics touched at the conference. It was concluded that though people are shifting to condos nowadays because houses are not affordable, within 10 years from now today’s housing prices will seem cheap.
While Toronto and Vancouver markets are now cooling down, there are hidden gems in smaller markets such as Regina. Above captioned: ~200 unit townhouse condo project yielding good returns and secure structure. For more: www.r2-re.com
Another important issue is the rising number of condo cancellations, which can be largely attributed to:
· increased costs for land;
· construction and government fees;
· tightening credit and financing;
· slow municipal approvals.
Moreover the foreign investments matter was touched and it turned out that nowadays the number of foreign investments is increasing sharply. To make the partnership and deal process go as smooth as possible, more and more foreign groups are looking to partner with local companies. For example, many Middle Eastern investors, including DAMAC Properties from Dubai, are interested in investing in “a macro-economic and geopolitically safe environment” like Canada.
On the other hand, in some cities, like Montreal, investor pool is a bit more localized. The role and volume of domestic investments is also growing and Canadian institutions are becoming more active buyers. This is a rising trend nowadays as there is a huge opportunity to build more. There are numerous Canadian Institutions that have a lot of capital and willingness to invest.