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ReMax Housing Market Outlook Report

Ontario markets expected to continue to lead home price growth in 2020

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Ontario markets expected to continue to lead home price growth in 2020

ReMax Housing Market Outlook Report

Housing markets in Southern Ontario will lead in home price growth this year, and are expected to continue to do so in 2020, according to a new report from ReMax.

ReMax is expecting a leveling out of the highs and lows that characterized the Canadian market in 2019, particularly in Vancouver and Toronto, as we move into 2020. Healthy price increases are expected next year, with the ReMax 2020 Housing Market Outlook Report estimating a 3.7 per-cent increase in the average residential sales price.

Some regions in Ontario continue to experience higher-than-normal year-over-year gains from 2018 to 2019, including London (10.7 per cent), Windsor (11 per cent), Ottawa (11.7 per cent) and Niagara (12.9 per cent).

“Southern Ontario is witnessing some incredibly strong price appreciation, with many regions still seeing double-digit gains,” says Christopher Alexander, Executive Vice-President and Regional Director, ReMax of Ontario-Atlantic Canada. “Thanks to the region’s resilient economy, staggering population growth and relentless development, the 2020 market looks very optimistic.”

As more Canadians have adjusted to the mortgage stress test and older Millennials move into their peak earning years, it is anticipated that they will drive the market in 2020, particularly single Millennials and young couples. A recent Leger survey conducted by ReMax found that more than half (51 per cent) of Canadians are considering buying a property in the next five years, especially those under the age of 45.

Ontario leading the way

Toronto is set to experience a strong housing market in 2020. Lower unemployment rates, economic growth and improved overall affordability in the GTA are expected to drive the market forward. ReMax is forecasting average sale price growth for 2020 of six per cent, two points higher than the increase from 2018 ($835,422) and 2019 ($880,841 ). While Toronto is experiencing a busy construction season this year, housing supply still falls short of the demands of the city’s rapidly growing population.

ReMax Housing Outlook Report

 

Cities such as Ottawa and Windsor are seller’s markets, showing substantial increases in average residential sale price at 11.7 and 11 per cent, respectively. This strong growth is expected to continue into 2020, with Ottawa’s new LRT system impacting surrounding development and Windsor’s continued affordability attracting young professionals to the area. Buyers are also not burdened by the mortgage stress test, as they were in 2018, ReMax says.

The Niagara region is also showing strong growth, with average residential sale price increasing almost 13 per cent, from $378,517 in 2018 to $427,487 in 2019. Value-conscious consumers from the GTA are buying in droves, with many choosing to live in the region and commute to Toronto.

REGIONAL HIGHLIGHTS ACROSS CANADA:

BC

Consumer confidence in regions such as Vancouver West in early 2019 was extremely low and remained relatively shaky throughout the year, resulting in an average residential sale price drop of 7.5 per cent, from $2.27 million in 2018 to $2.10 in 2019. However, consumers have acclimatized to the mortgage stress test, and confidence has begun to return and will prevail in 2020, with prices expected to rise four per cent.

ReMax Housing Outlook Report

Fraser Valley also experienced a price drop of almost four per cent year-over-year, from $724,740 to $696,502. However, the region is also expected to witness substantial growth, particularly in downtown Surrey, due to the high number of real estate developments catering to businesses and educational institutions. First-time buyers are expected to drive the market in 2020 due to the relative affordability of the region compared to Vancouver proper.

“The drop in sales in some key British Columbia markets represents the last of the ‘down’ market spillover from 2018,” says Elton Ash, regional executive vice-president, ReMax of Western Canada.

“Consumer confidence is poised for a comeback, leading to more healthy and sustainable growth, as more buyers come to terms with the stress test and interest rates are unlikely to increase in any meaningful way in 2020.”

Prairies

ReMax Housing Outlook Report

Alberta continues to experience slowing economic conditions, leading to a decrease in average residential sale prices in Calgary, from $478,088 in 2018 to $460,532 in 2019. Condos are the easiest way for first-time homebuyers to get into the market, with starter units going for as low as $150,000. While the city’s unemployment rate continues to remain high compared to the rest of Canada, the population is increasing, with more people moving to the city from other parts of the province.

Winnipeg, on the other hand, has shown a small increase in average residential sale price, both for freehold and condominium properties, by 1.5 and 0.8 per cent, respectively. Immigration to the city, in combination with reasonable prices and ample supply, is expected to drive sales going into 2020.

Atlantic Canada

ReMax Housing Outlook Report

Halifax, NS and Saint John, NB have experienced solid price appreciation of six and five per cent, respectively. Affordability continues to attract many buyers in the region, most of whom are buying single-detached homes. At the same time, the region’s condominium market is being driven by retirees. Conversely, the market in St. John’s, Nfld. is expected to recover in 2020, with increased consumer confidence expected to bring about stabilization. However, the city’s aging population and high rate of outbound migration is expected to have an impact on housing market activity at some point.

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Outlook 2020 – what’s in store for GTA housing next year?

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Podium Developments Ironwood

Groundbreaking marks Phase 2 launch and Phase 1 sell out at Ironwood in North Oshawa

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Groundbreaking marks Phase 2 launch and Phase 1 sell out at Ironwood in North Oshawa

 

Podium Developments Ironwood
Back row, right to left, Oshawa Mayor Dan Carter; Podium Developments’ vice-president, development, Christian Huggett. Front row, right to left, Podium Developments’ Project Manager Hani Agha; Managing Director Oskar Johansson; Managing Director Bernard Luttmer; Regional & Oshawa City Councillor Tito-Dante Marimpietri; Building Capital Principal Saqib Qureshi; Cranson Captial Securities’ President Devon Cranson; Vice-President Business Development David Roff.
Photo: Robert Lowdon

Having sold out the first release, Podium Developments and Building Capital recently broke ground at Ironwood in North Oshawa and released Phase 2.

The development team welcomed community partners and visitors to celebrate this milestone at the townhome collection located just north of Simcoe Street North and Taunton Road in North Oshawa. Priced from the upper $400’s, a new release of lots is now available, including a limited number of park lots.

Ironwood is situated on a private street on an 11-acre property between Camp Samac and Oshawa Creek in Cedar Valley. The Ironwood community backs onto hundreds of acres of valley land, forest and stream, and is minutes to Cedar Valley Conservation Area, Centennial Park and Somerset Park.

In addition to being close to shopping, dining and entertainment, Ironwood is a 10-minute walk to the University of Ontario Institute of Technology and Durham College. Public transportation access is nearby, and residents can be at Hwys. 407 and 401 in less than 15 minutes.

Modern architecture

Sporting modern architecture, the three- and four-bedroom townhouses at Ironwood feature a private garage and driveway with two-car parking, plus either a backyard or rooftop terrace. Community amenities include a private landscaped park, community gardens, an off-leash dog park, children’s playground, walking path, tobogganing hill and a sports field with a seasonal ice rink – all backing onto the protected acres of ravine lands.

Townhome sizes range from a generous 1,521 to 1,865 sq. ft. Well-appointed open-concept interiors receive generous natural light from large windows that grace more than three full floors of living space. Among the standard features is nine-ft. ceiling heights on the main level. Adding to the convenience for Ironwood residents, a minimal maintenance fee of approximately $150 per month covers daily upkeep of landscaping, snow removal, and site and amenity maintenance.

Podium Developments and Building Capital have more than 25 years of combined experience. Podium Developments was founded in 2004 by successful professionals who share a new vision of excellence. The company has a proven track record in rezoning and developing sensitive urban infill locations. Founded in 2008, Building Capital has focused largely in North Oshawa, having built and sold several student housing projects and earned a reputation as one of Ontario’s leading student housing developers. Building Capital’s extraordinary knowledge of the North Oshawa area makes the firm the perfect partner for Podium Developments.

The Ironwood Towns Presentation Centre is located at 1700 Simcoe St. North, Unit B. Parking is available at the rear of this building. Hours are Monday to Thursday noon to 6 p.m., Saturday and Sunday noon to 5 p.m., Fridays closed. To register for the new release, call 905.576.0139 or visit myironwood.ca

 

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Judy Wilson Stouffville property

Real estate executive selling her unique Stouffville property

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Real estate executive selling her unique Stouffville property

Judy Wilson Stouffville property

Judy Wilson is an independent woman in real estate. There is a lot of talk these days about women’s equality in the marketplace and breaking the artificial glass ceiling that restricts their progress. Wilson broke through that ceiling decades ago, and today it’s paying off – in experience she hopes will help her sell her unique Stouffville property.

Wilson entered the real estate profession in 1977 after a successful but limiting career in retail and fashion design. She describes the transition to real estate sales as her “first awareness of limitless freedom.” For the first time, her time and her work schedule were her own. She set out to fulfill her own dreams, and any limits were self-imposed.

Judy Wilson Stouffville property

Wilson began her career with PMA Brethour on a Monarch development, and quickly moved from on-site sales to management, becoming the first woman manager in a male-dominated world. That management career spanned more than four decades, working with many of Toronto’s leading builders and developers.

High aspirations

Ironically, it was her early training in design that led to her interest in renovation and custom building. In the late 1970s, Wilson’s first real estate purchase was a highrise condo, but not just any condo. She bought a penthouse suite from Joe and Willy Lebovic. That led to her building her first custom home, with more than 4,000 sq. ft., who she later sold to Anne Rohmer and Steve Podborski.

Wilson’s deal making skills translated into multiple renovations and custom builds throughout the GTA, all the while maintaining her role as vice-president sales at PMA.

Over the course of her career, she has built, renovated and sold more than 14 properties, from a loft in Leslieville, to a luxury waterfront cottage on Lake Simcoe, to an 8,000-sq.-ft. 29-stall equestrian farm and former home to the rock group Rush.

Judy Wilson Stouffville property

Unique Stouffville property

She says it’s the last one, but this energetic and creative professional has now completed her masterpiece on 93 acres in Stouffville. An incredible estate with multiple residences, a major maple sugar production facility, stables and riding trails. The main house is a 4,000-sq.-ft. Post and Beam Colorado-inspired design.

Wilson never stops… Her next step, for the first time in her expansive career, is to move down, cash out and renovate a 2,000-sq.-ft. condo into the ultra-modern and ultra-chic suite of her dreams.

 

Judy Wilson Stouffville property

14700 McCowan Rd., Stouffville. Sales representative: Maureen Brennan, PMA Brethour, 416.831.8078, maureenb@pmabrethour.com 14700mccowan.ca

 

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BILD Outlook 2020

Outlook 2020 – what’s in store for GTA housing next year?

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Outlook 2020 – what’s in store for GTA housing next year?

Global and even some Canadian economic and political uncertainty shouldn’t derail growth in the GTA housing market next year, according to experts at the Building Industry and Land Development Association’s (BILD) recent Outlook 2020 event.

Craig Wright, senior vice-president and chief economist at RBC, and Peter Donolo, political and communications strategist with Hill + Knowlton Canada, said that overall, the fundamentals for the economy and housing market in Ontario and the GTA bode well for 2020. There are some challenges, however – namely the ongoing new home supply issue.

With Justin Trudeau’s Liberals re-elected as a minority government, Canada will see a relatively stable left-leaning federal government that will focus on environmental issues, affordability and redistribution rather than on economic growth, Donolo says.

BILD Outlook 2020
Left to right, Dave Wilkes, Peter Donolo and Craig Wright

Globally, geopolitical uncertainty and softening economic growth mean that Canada faces challenges with export and investment, leaving the heavy lifting to the consumer, according to Wright. Economic growth is expected to be modest and in line with employment and income, at about 1.7 per cent, and interest rates will likely continue to be low.

Strong employment growth

For Ontario, GDP growth will likely be a notch below, about 1.5 per cent, with housing starts for 2019 and 2020 at about 72,000 units, compared to about 79,000 in 2018, Wright says.

“That reflects a number of factors,” Wright told HOMES Publishing. “We continue to see strong employment gains, Ontario is leading Canada in terms of employment growth on a year-over-year basis, and strong population growth. So, strong fundamentals supporting it, in a low rate environment.”

BILD Outlook 2020 Craig Wright
Craig Wright, senior vice-president and chief economist, RBC

The GTA’s robust population growth will continue to drive demand for both ownership and rental housing, Wright says. Municipal and provincial governments are shifting to supply-side solutions for balancing the housing market.

“As you look at the structural reality of the GTA market, where we have immigration coming in… we have 140,000 to 150,000 people coming to this region each and every year,” adds BILD President Dave Wilkes. “That really does bode well for our industry.”

The mortgage stress test needs to be revisited in light of the continued low interest rates, Wright says.

Millennial attitudes

Another issue that might affect the Canada and the building industry is Millennials and their views on the environment and the economy – attitudes Donolo describes as “absolute.”

BILD Outlook 2020 Peter Donolo
Peter Donolo, political and communications strategist, Hill + Knowlton Canada

“When I say absolute, you talk about the oil sands and it’s like you’re talking about the Medellin drug cartel,” he says. “They’re not conscious or interested in the fact that the oil sands and Canada’s oil and gas sector is a kind of the backbone of the Canadian economy, that millions of jobs depend on it… They’re not interested in a kind of slow transition or weaning away from it. They think it’s immoral… and this is a very widespread view.”

Millennial views on homeownership are also different, Donolo says.

“Do Millennials look differently at what homeownership is about? Are they less interested in owning a traditional detached house with a backyard and property? If you look at rates of drivers licenses among Millennials, there is perhaps an indication.”

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TCDSB The Mikey Network

The Mikey Network partners with Toronto Catholic District School Board

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The Mikey Network partners with Toronto Catholic District School Board

TCDSB The Mikey Network
All 202 schools and various facilities of the Toronto Catholic District School Board (TCDSB) now have defibrillators installed. Participants at a recent partnership announcement with The Mikey Network at St. Lawrence Catholic School in Scarborough, are, left to right: Mikey Network’s Eva Naumovski; Mikey Network Chairman Hugh Heron; TCDSB Trustee Michael Del Grande; TCDSB Associate Director of Business Services & CFO Lloyd Norongha; Khaled Elgharbawy; Stacey Coray; Veronica Olmedo; Yoliana Azer, Superintendent Peter Aguiar

The Toronto Catholic District School Board is taking the important step of equipping all 202  of its facilities with automated external defibrillators. The AEDs, as they are known, are potentially lifesaving devices and are supplied by The Mikey Network.

“We appreciate the feedback provided by parents, staff, students and other community members regarding AEDs and we continue to look for opportunities that help us ensure the safety and well-being of all our staff and students, which is always our number one priority,” says TCDSB Chair Maria Rizzo. “Through this partnership with The Mikey Network, we have successfully achieved ourgoal of having every school site equipped with an AED by the end of 2019, ahead of schedule.”

“Today marks an important moment, aimed at putting a spotlight on the challenge that people living with rare, congenital heart conditions face on a daily basis, as well as the emotional toll it takes on their loved ones,” adds TCDSB Vice-Chair Michael Del Grande. “Events like this give us anopportunity to come together as a Catholic community to show our support to those vulnerable toincidents of sudden cardiac arrest and to show them that there is help.”

In December 2018, the TCDSB board approved the allocation of about $210,000 to fund the purchase of the AEDs. Staff received CPR and AED training over the 2019 March Break. The Board also arranged first aid courses during the 2018-19 school year, so a minimum of two staff members per school are trained in standard first aid, CPR and AED use. Most schools already have more than two certified first aiders.

“We are delighted to partner with the Toronto Catholic District School Board on their installation of potentially life saving defibrillators,” says Mikey Network Chairman Hugh Heron. “With our Mikey placements, we are helping give people a second chance at life.  As a not-for-profit organization, we’re committed to teaching people how to use defibrillators and how to lead a heart-healthy lifestyle.  Over the years we have trained over 13,400 in CPR and AED, and to date, have 43 recorded saves, eight of whom are under 18 years of age, and that is very gratifying.”

The Mikey Network has also created a free mobile app called The Mikey Young at Heart app, designed to help teach students CPR and AED training, making them more confident to use an AED or administer CPR should they ever need. Time spent learning on the app can go toward their high school volunteer hours.

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The Mikey App is saving lives

 

 

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Flato Markham Theatre Performing Arts Awards Sept 10, 2019

Flato Markham Theatre honours locals in annual performing arts awards

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Flato Markham Theatre honours locals in annual performing arts awards

Flato Markham Theatre Performing Arts Awards Sept 10, 2019
Markham Performing Arts 2019 winners, staff and artists

The Flato Markham Theatre recently hosted its 5th Annual Performing Arts Awards, with celebrations honouring homegrown artistic achievements. Special performances included a three-time Provincial champion in piano, Richard Yeh, musical excerpts from the best of Broadway from Markham producer Brian Goldenberg and a special guest appearance by award-winning recording artist, Pavlo.

But the spotlight shone on the real stars of the evening: Community Group/Artist of the Year, Markham at the Movies; Professional Artist of the Year, Canada’s Ballet Jorgen; Partner of the Year, Asian Television Network; and a new category this year, Ambassador of the Year, Alicia and Alex Chiu.

Markham at the Movies (MATM), chaired by Paul Sylvester, is a non-profit group, run by volunteers and film enthusiasts who focus on bringing award-winning Canadian and international films to Markham’s resident’s doorstep. Markham at the Movies is a partner of Film Circuit, a division of the Toronto International Film Festival (TIFF) group. It started at a small scale, presenting movies in the Theatre’s rehearsal hall and has grown into a popular community cultural event, now presenting a six-movie series throughout the year at the Flato Markham Theatre.

Flato Markham Theatre
Left to right, Markham Mayor Frank Scarpitti, Shakir Rahmatullah and Eric Lariviere

Ballet Jörgenis not only an internationally respected touring ballet company, but it is also one of the only companies that will take professional ballet productions to smaller communities across Canada and into the US. Executive Director Stephen Word and his team brings outreach opportunities within those communities, giving young dancers opportunities to perform with the ballet onstage.

Asian Television Network (ATN) delivers South Asian and Asian content to residents across Canada. Shan Chandrasekar, president and CEO of ATN, pioneered South Asian programming in Canada in 1971 and ATN has grown into one of the leaders in the media industry today, operating 54 specialty tv channels along with radio channels across the country.

Alicia and Alex Chiu have been long time supporters of the Flato Markham Theatre. Alex left politics this last election and holds the current record for the longest serving councillor in Markham. For the Theatre, Alex has been instrumental for the growth of the Theatre Gala which raises money for its Discovery programs and has championed raising the profile of the event, making it into a prime fundraising event for culture in Markham and York Region. Alicia and Alex have been involved in the Federation of Filipino Canadians, including their “Taste of Broadway” event.

Every year the Flato Markham Theatre chooses a Canadian artist to design the Markham Performing Arts Awards. This year’s talented artist is Cathy Mark. Working from her studio on the north shore of Lake Scugog, her metalwork is inspired by Canadian flora and fauna. The award she created for Community Group/Artist of the Year for Markham at the Movies is a metal sculpture of young fiddleheads and ferns representing the audience (fiddleheads) with the full-grown ferns representing the films themselves. The Performing Artist of the Year award for Canada’s Ballet Jorgen, depicts a moose teaching a bear to dance, symbolizing the ballet company (moose) offering its hand to and guiding the young bear who represents the young dancers the company mentors and their involvement in the community.

Flato Markham Theatre is a jewel in the crown of the Markham community, located only 30 minutes from the downtown core. The intimate, 527-seat, state-of-the-art performance facility provides patrons with unforgettable access to a host of internationally acclaimed artists and productions through its annual Diamond Season presented by Weins Canada. Illuminating the central theme that the live arts in Markham matters, the season features the best of classical, jazz, world music, dance, comedy, pop artists, and family entertainment. Flexible ticket package options and complimentary parking are available.

flatomarkhamtheatre.ca

 

 

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The Davis Residences, Newmarket

In Conversation With… Daniel Berholz, President, The Rose Corporation

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In Conversation With… Daniel Berholz, President, The Rose Corporation

Daniel Berholz, The Rose Corporation
Daniel Berholz
President
The Rose Corporation

Attainable homeownership options are growing more and more important each day, as rising prices and tightening new home supply severely limit buying opportunities and locations.

The Rose Corporation is intent on doing something about that.

With – to get further insights into how The Rose Corporation plans to achieve these objectives.

Condo Life: The Rose Corporation seems like a bit of a different real estate company… What is it readers really need to understand about your firm?

Daniel Berholz: The Rose Corporation has had a diverse history over almost 40 years and has had experience and expertise in many forms and tenures of real estate and other businesses as well. Currently, however, Rose is a developer of visionary residential communities (both condominium and freehold) and a developer/owner of purpose-built rental properties.

CL: What is your primary focus in the GTA, in terms of both geography and product type?

DB: Newmarket has been a big focus for us recently. We just introduced Newmarket’s first new highrise condominium in more than 30 years – The Davis Residences at Bakerfield. We’ll be hosting our Grand Opening sales event on Saturday, Sept. 21 at 11 a.m. The Davis is part of a master-planned community that will consist of other similar buildings which will be high end rental buildings or condominiums.

The Davis Residences, Newmarket
The Davis Residences, Newmarket

Our King George School Lofts & Town Homes development is another community in Newmarket that we’re really proud of. It comprises 11 condo lofts within the old school building surrounded by 14 two-storey freehold townhomes.

As well, we recently completed the first privately funded, purpose-built market rental apartment tower in York Region since the 1980s, called 212 Davis Apartments – a 15-storey, 225-unit building.

In Kitchener, we are active in the purpose-built rental development market with the introduction of our first project, Woodside Terraces, which included 103 suites. The second phase will include 91 units and will feature a new wing being built on excess land.

And at 388 King St. in downtown Kitchener, we recently broke ground on a seven-storey, 70-unit purpose-built rental apartment.

CL: Who are your target clients? Purely investors? Homebuilders? Or homebuyers who want to become real estate investors?

DB: Our target clients are homebuyers who are looking for valuable, quality homeownership opportunities. We are focused end-users – from first-time buyers looking for their first home purchase, families who need more room to grow and even empty-nesters who are seeking more maintenance-free housing options with plenty of lifestyle amenities.

Our target clients also include investors who are seeking to diversify their real estate portfolio.

CL: How’s the market these days for the products that you offer?

DB: The market is strong for condo developments, which provide more affordable homeownership opportunities for first-time buyers and turnkey options for empty nesters who want to sell their large homes and keep a tidy savings for their retirement.

The Davis Residences lobby, Newmarket
The Davis Residences lobby, Newmarket

As more people are looking to move out of the GTA due to affordability, municipalities such as Newmarket, that were once viewed as bedroom communities, have been attracting more people to the area because buyers can get better value.

And with companies such as Celestica and York Region headquarters moving into Newmarket, this only adds to the demand of alternative to lowrise housing, such as condos and purpose-built rentals, which are more attainable options for commuter employees seeking to live closer to work.

CL: For residential offerings, affordability and “missing middle” type housing are key issues. How does The Rose Corporation address these issues in its projects?

DB: One of our primary focuses is working collaboratively with all levels of government on all of our projects so that together, we can deliver the type of housing that is needed to provide a complete community in the areas we develop.

Increases in prices for ground related housing have made ownership unattainable for many people over the past number years in Newmarket. The Davis Residences will provide the area the first opportunity to own new quality housing at affordable prices.

As well, Rose’s purpose-built rental housing developments provide affordable alternatives within their communities. This includes 212 Davis Apartments in Newmarket. This building leased up quickly due to its attractive and affordable price point relative to other options in the area.

CL: The Rose Corporation was nominated for the People’s Choice Award in the 2019 BILD Awards for your King George School Lofts & Town Homes development. What was it about this project that made it so special?

DB: King George School Lofts and Town Homes repurposes one of downtown Newmarket’s oldest and most beloved properties. The creation of this trendsetting new address, offering 11 condominium lofts within the old school building surrounded by 14 two-storey freehold townhomes, sets a new bar for innovative design.

Loft homes range from 640 to 1,250 sq. ft., while townhomes offer nearly 2,200 sq. ft. of magnificent living space. Both lofts and towns feature exceptional architecture and finishing features designed to reflect the ultimate in contemporary living. The architecture combines Victorian and Edwardian heritage with modern luxury. The project is set within a lush perimeter of 100-year-old trees, century old heritage buildings and iconic historical landmarks just steps from the historic downtown core of Main Street offering extensive amenities, shops, cafes and restaurants.

CL: What did you learn from that project, or the experience of being nominated for an award that consumers vote on, that you’re carrying forward to future projects?

DB: It’s always important to validate that what you think you’re doing well is widely recognized as such. We are still thrilled to win awards, but that’s not what we set out to do. Rose prides itself as an innovative developer.

Our big push now is to develop purpose-built rental apartments and condominiums to address the critical shortage of housing that is affordable that seniors, single and families alike need – and need now.

The Rose Corporation management team
Left to right, The Rose Corporation’s Project Manager David Bannerman; President Daniel Berholz; and Vice-President Andrew Webster

CL: What’s next for The Rose Corporation? Ideally, tell us something that isn’t largely publicly known…

DB: What most don’t know is that we are growing our executive management team. Rose has been active since 1983, and now a new generation of managers is transitioning as the old guard cedes authority and responsibility.

Fortunately, several senior members will remain with reduced roles. Now we will have the experience of a generation and the energy, skills and enthusiasm that a youthful team brings.

We are very excited to soon announce new partnerships with some experienced and well-known financial entities. These partnerships will allow us to advance our development aspirations with landowners we are in active discussion with.

The geography remains outside Toronto and includes locations in Peel, Halton and York regions, as well as new deals within the communities we are currently active in, Kitchener and Newmarket.

rosecorp.com

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GTA new home sales

GTA new home sales in July remain strong

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GTA new home sales in July remain strong

GTA new home sales

It was a busy month by July standards, as sales for both condos and single-family homes were up year-over-year, according to the latest statistics from the Building Industry and Land Development Association (BILD).

There were 566 new single-family homes, including detached, linked and semi-detached houses and townhouses, sold in July, according to Altus Group, BILD’s official source for new home market intelligence. Although sales increased 136 per cent from last July, they were 29 per cent below the 10-year average.

Sales of new condominium apartments in low-, medium- and highrise buildings, stacked townhouses and loft units, with 2,297 units sold, were up 22 per cent from July 2018 and 42 per cent above the 10-year average.

Brisk openings

“Typically, buyers take a bit of a vacation from the new condo apartment market in July” says Patricia Arsenault, Altus Group’s executive vice-president, Data Solutions. “This year was no different, although the decline in sales was less pronounced than usual, resulting in the second strongest July on record. While few new projects launched in July, sales at projects opened in June were brisk.”

The benchmark price of new condominium apartments increased from last month, to $838,824, up 8.3 per cent over the last 12 months. The benchmark price of new single-family homes decreased slightly from last month, to $1.09 million, down 4.5 per cent over the last 12 months, continuing its moderating trend in 2019.

ALSO READ: Detached home sales and prices roar back to life in first half of 2019 – ReMax

Strong July sales, paired with traditional fewer summer openings, saw inventory decrease in July to 12,873 condominium units and 4,409 single-family homes. Remaining inventory includes units in preconstruction projects, in projects currently under construction and in completed buildings.

Total new home sales in the first seven months of 2019, at 20,268 units sold, are up 45 per cent from the same period in 2018 and nine per cent below the 10-year average.

Price gap narrows

“The price gap between single-family homes and condos continues to shrink, leaving new-home buyers with a lack of choice,” says David Wilkes, BILD president and CEO. “We must provide more ‘missing middle’ type development that can support transit in established neighbourhoods. More ‘gentle density’ housing in the form of midrise buildings, condos with street level retail, and stacked townhouses is needed to give consumers more choice.”

 

New home sales by municipality, July 2019

Municipality Condominium units Single-family homes Total
Region 2019 2018 2017 2019 2018 2017 2019 2018 2017
Durham 29 6 27 118 44 60 147 50 87
Halton 59 46 18 82 25 18 141 71 36
Peel 415 150 148 142 87 0 557 237 148
Toronto 1,522 1,557 1,118 46 8 6 1,568 1,565 1,124
York 272 120 461 178 76 34 450 196 495
GTA 2,297 1,879 1,772 566 240 118 2,863 2,119 1,890

Source: Altus Group

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Del Condominium Rentals

In Conversation With… Shanker Narayanan, General Manager, Del Condominium Rentals

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In Conversation With… Shanker Narayanan, General Manager, Del Condominium Rentals

Shanker Narayanan, general manager, Del Condominium Rentals
Shanker Narayanan, General Manager, Del Condominium Rentals

Condominiums are booming in the GTA, with an increasing number of owners choosing to rent out their units for investment purposes.

Del Condominium Rentals, setting a standard in suite rental management in the GTA since 1986, offers such owners suite leasing services without having to worry about the day-to-day concerns related to being a landlord. From marketing, tenant screening, leasing, maintenance and repair, accounting, insurance coverage, compliance enforcement and revenue retrieval, the company does it all.

We spoke to Shanker Narayanan, general manager of Del Condominium Rentals to learn a little more about this growing business.

Condo Life: What is the scope of the management services you offer to condo unit owners? Is it a one-size fits all package, or is there a range of services owners can choose from…?

Shanker Narayanan: We provide day-to-day management of the suites, including complete research and marketing for new owners, arranging insurance, utility transfers and other services – all for a fee of six per cent of the monthly rental. We plan to also introduce a tiered system involving additional services, such as rent guarantee, suite inspections and maintenance.

Del Condominium Rentals

CL: How much of a growing business category is this for Tridel? We’re hearing so much about the investor element in condominium ownership these days…

SN: We have 2,550 condos in our portfolio today and are planning to grow to 3,500 by 2024. We were primarily a company that provides leasing services for Tridel suite owners, and about 78 per cent of our business comes from their new builds. We have evolved over the past five years into a leading condo rental management company in the GTA. We are aggressively trying to grow the non-Tridel portfolio. If this happens, we would look at increasing the overall portfolio to hopefully 5,000 suites in five years.

For Tridel new builds, we provide lease-up services from interim occupancy to eventual unit registration. This period might vary from building to building. We are currently leasing about 35 to 40 per cent of the inventory in all new builds.

CL: What is your typical client profile? Investor-owners who want to be completely hands off? First-time investors who really need the help being a landlord…?

SN: About 90 per cent of our owners are first-time homeowners or single unit owners, who don’t have the time to self-manage their units. We do have a lot of seasoned investors who have multiple suites in their portfolio. On average, a homeowner stays in our program for five years. They usually have an investment cycle that culminates in either them selling, -self-occupying or in rare cases self-managing the unit.

Del Condominium Rentals

CL: What are the main benefits of using your services, that perhaps suite owners couldn’t do on their own?

SN: Most owners don’t know that there are a million things that could go wrong when managing a condo unit. We know this from experience and from managing a portfolio of more than 2,500 condos over the past decade. Most owners who self-manage condos have a belief that “this won’t happen to me.” Things get complicated at times, and that’s when expert knowledge comes handy. For example, an owner might have a new condo but there might be a water leak from a unit above and that causes water damage in suites below. There could be resulting claims from owners against this owner even though the problem isn’t with their unit. We manage these complex scenarios with the insurance adjusters and the condo property management.

We are a one-stop shop for homeowners, providing turnkey management and peace of mind.

CL: How do you arrive at the end cost to clients for these services? Does it depend on the unit size, rental rate, specific services they’re using…?

SN: Our management fees are very competitive. We have always been a market leader and have been looked upon as setting the benchmark. We also have preferred rates with vendors for services such as plumbing, electrical, HVAC and handyman work. In addition, we co-ordinate works for window coverings, flooring and window and door installation. We have synergies with Tridel and ensure that we pass on the benefits to suite owners.

CL: And how do you determine the rental rate for units?

SN: We do a thorough market evaluation. We are the rental experts, and as such, Tridel sets the rental benchmark for any community. Our expert team looks at trends on MLS and third-party Internet sites and comes up with the best practices to research and tabulate rentals.

CL: Ideally, suite owners would want to be cash-flow positive when renting out their investment condo. How do you help them achieve this goal?

Del Condominium Rentals

SN: Most suite owners have a set financial cycle that will allow them to realize market potential. We save them costs and the hassles of day-to-day management and they see the benefits over a period of time. While cash flow is key for many owners, they see the merit of us ensuring that the unit is well maintained and the equity grows over time.

CL: And when it comes time that they wanted to sell, how can you assist in that transaction, say, to another potential investor-owner?

SN: We typically refer owners back to their agent when they consider selling. This is our partnership with our realtor colleagues. We do, however, ensure the transaction and unit transition go smoothly. For example, we make sure all necessary restorations are completed and that things are co-ordinated with residents and property management.

CL: Any other key pieces of information potential clients should know about your services?

SN: We are leaders in the rental business. What sets us apart from others is that we are part of Tridel. We bring synergies from other group companies such as Del Property Management, DelSuites, Tridel Customer Care and Deltera (construction). This is invaluable and often beneficial for homeowners.

For more information, contact Del Condominium Rentals at the website, 4800 Dufferin St., Toronto, or call 416.296.RENT (7368).

 

 

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Toronto City Hall

City of Toronto councillors’ decision ‘irresponsible,’ will worsen housing affordability and supply problems

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City of Toronto councillors’ decision ‘irresponsible,’ will worsen housing affordability and supply problems

Toronto City Hall

The Building Industry and Land Development Association (BILD) is outraged by the announcement made today by City of Toronto councillors Joe Cressy, Mike Layton and Kristyn Wong-Tam. The trio said they would red light any development that supports council approved TO Core Plan, ignoring the direction given by the Minister of Municipal Affairs and Housing’s approved plans. These actions are a clear example of political interference that slows the development of new housing and increase costs.

Blatant disregard

“This blatant disregard of provincial policy is the opposite of a housing strategy, in fact it’s an anti-housing strategy,” says Dave Wilkes, president and CEO of BILD. “The net impact will add cost to the City, add cost to new home purchasers, increase the delays of much needed livable housing close to transit and lengthen approvals times as challenges and appeals are undertaken to ensure that the law is respected,” adds Wilkes.

It was the City of Toronto’s decision to file the Official Plan Amendment for TO Core with the province under Section 26 of the Planning Act. This rarely used mechanism requires ministerial approval and is non-appealable. Disliking the results of this decision, the councillor’s statements to developers that they will de-prioritize projects that are in accordance with the Minister of Municipal Affairs and Housing’s decision and not the City’s version of the plan is like asking them to take sides in schoolyard spat. Councillors Cressy, Layton and Wong-Tam are disregarding the planning process, abdicating their responsibility and adopting planning by threat.

“The decisions to amend the official plans just prior to the last election was politically motivated and went against the recommendations of the City’s own planning staff,” says Wilkes.

Desperate need

“More housing is desperately needed to accommodate growth in the region. It makes sense for this type of housing to be built in places that can leverage existing investments in infrastructure and be transit supportive. We are calling on Toronto City Council to take the necessary steps to address housing supply and affordability in Toronto.”

The provincial government rightly recognizes that changes are desperately needed to provide adequate and affordable housing to a growing province. More than 115,000 new residents are expected in the GTA every year through 2041 and the population is set to grow by 40 per cent. Meeting this generation challenge will require policies that enable housing supply and affordability, not illegal actions that add cost, delays and restrict supply.

BILD is the voice of the home building, land development and professional renovation industry in the GTA. With more than 1,500 member companies, the industry provides $33 billion in investment value and employs 271,000 people in the region.

TREB reminder

The Toronto Real Estate Board is also concerned about the councillors’ decision.

“With some City of Toronto councillors announcing plans that could add obstacles to the creation of new housing supply in their wards, TREB is reminding all levels of government that housing supply is one of the most important issues in Toronto and the GTA, and is encouraging cooperation between governments,” the organization says. “TREB has been at the forefront in calling for governments to do what they can to ensure an adequate, appropriate and affordable supply of housing for the Toronto and GTA real estate markets.

“This is an issue that will require both provincial and municipal government efforts and policy initiatives from various perspectives, including minimizing unnecessary red tape, while maintaining the high quality of life that makes Toronto and the GTA such a desirable place to live, work, and play.  TREB is encouraging provincial and municipal decision makers to work cooperatively to make the interests of homebuyers their first priority.”

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