Home Sales Slow in Canada’s Hottest Markets as Condo Glut Builds

(Bloomberg) — Canada’s hottest housing markets are slowing down as unsold condos pile up with more people fleeing dense downtown living for the suburbs.



a cactus in a city: Buildings stand in the downtown skyline in this aerial photograph taken above Toronto, Ontario, Canada, on Monday, Oct. 2, 2017. Toronto housing prices fell for a fourth month in September as sales remained sluggish, particularly in the detached-home segment that has borne the brunt of the correction in Canada's biggest city.


© Photographer: Bloomberg/Bloomberg
Buildings stand in the downtown skyline in this aerial photograph taken above Toronto, Ontario, Canada, on Monday, Oct. 2, 2017. Toronto housing prices fell for a fourth month in September as sales remained sluggish, particularly in the detached-home segment that has borne the brunt of the correction in Canada’s biggest city.

Home sales in Toronto, Canada’s financial capital, fell 2.1% in November from October, the third straight month transactions have dropped on a seasonally adjusted basis, according to data released Thursday by the Toronto Regional Real Estate Board.

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In Vancouver, which has Canada’s most expensive real estate, home sales slid 17% on an unadjusted basis compared with a month earlier, the Real Estate Board of Greater Vancouver said Wednesday. Prices were

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Canada’s Condo Markets Face Perfect Storm As Rental Rates Tank, Costs Jump

grandriver via Getty Images

Newly-built condo buildings in Montreal’s Griffintown neighbourhood. Canada’s condo owners could be in for rough times as the market paces a perfect storm of problems.

Add yet another to the many imbalances in Canada’s pandemic economy: Renters are catching big breaks as rental rates drop, while condo owners ― particularly investors ― are looking at potentially rough times ahead.

In fact, for condo owners, just about everything that could go wrong ― from bad construction and rising insurance costs, to rental rates that can’t cover mortgage payments ― is going wrong.

Rents are falling in most Canadian major cities, pulling down the average asking rent by 8.1 per cent from a year ago, according to the latest data from Rentals.ca. Much of the decline came in the spring and summer, with the average price more or less stable in the past few months.

Toronto led the

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Cracks in Real Estate Market Fail to Rattle Canada’s Big Banks

(Bloomberg) — Parts of Canada’s housing market are showing strain, but one group isn’t buying into dire warnings about the end of a decades-long boom: the bankers writing most of the mortgages.

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A number of forecasters, including Moody’s Corp., UBS Group AG and the country’s top housing regulator, are predicting a sharp correction over the next year. Canada’s largest banks aren’t worried: on average, the six largest lenders see price declines of about 3% over the next 12 months, according to forecasts they use to determine potential credit losses. Bank of Montreal sees no change at all in the nation’s average housing price.

Contrast that with the federal government’s Canada Mortgage & Housing Corp., which is calling for a 21% plunge in prices. UBS didn’t give a specific price forecast, but it named Toronto the world’s third-most vulnerable city to a “sharp correction” in housing prices.

Some of

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Blackstone to buy Simply Self Storage from Canada’s Brookfield for $1.2 billion

(Reuters) – Blackstone Group Inc BX.N has reached an agreement to buy Simply Self Storage from Canada’s Brookfield Asset Management Inc BAMa.TO for about $1.2 billion, a spokeswoman for the asset manager said late on Sunday.

Blackstone’s non-traded real-estate investment trust, known as BREIT, is acquiring the 8 million-square-foot portfolio of self-storage facilities, the spokeswoman said, confirming an earlier report from the Wall Street Journal.

Bloomberg reported earlier this month that Brookfield was exploring a sale of the real estate company.

The Canadian company acquired Simply Self Storage for $830 million in 2016 when it had 90 locations.

The self-storage facilities provider now operates more than 120 locations across 23 U.S. states, including Texas, Florida, New York and California, according to its website.

BREIT, which was launched in 2017 and has a net asset value of $19 billion, plans to continue to buy smaller assets in the fragmented industry and

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Indian developer RMZ sells real estate assets to Canada’s Brookfield for $2 billion

(Reuters) – Privately held Indian developer RMZ Corp has sold 12.5 million square feet of its real estate assets to Brookfield Asset Management Inc BAMa.TO for $2 billion, the Canadian asset manager said on Monday.

The deal, which was reported earlier by Bloomberg and The Hindu newspaper, includes divestment of RMZ’s co-working business CoWrks, a Brookfield spokeswoman confirmed in an email.

RMZ will have zero debt after the deal that involves its rent-yielding offices and co-working spaces. It will use the money to expand its portfolio.

“The deal marks the largest-ever deal in the Indian real estate industry,” RMZ said in a statement.

The company will divest a part of its core portfolio across Bangalore and Chennai, it said.

The commercial real estate asset portfolio of RMZ is valued at about $10 billion, according to The Hindu newspaper of India.

The deal involved a sale of 18% of RMZ’s commercial

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Indian developer RMZ sells real estate assets to Canada’s Brookfield for $2 bln

Oct 19 (Reuters)Privately held Indian developer RMZ Corp has sold 12.5 million square feet of its real estate assets to Brookfield Asset Management Inc BAMa.TO for $2 billion, the Canadian asset manager said on Monday.

The deal, which was reported earlier by Bloomberg and The Hindu newspaper, includes divestment of RMZ’s co-working business CoWrks, a Brookfield spokeswoman confirmed in an email.

RMZ will have zero debt after the deal that involves its rent-yielding offices and co-working spaces. It will use the money to expand its portfolio.

“The deal marks the largest-ever deal in the Indian real estate industry,” RMZ said in a statement.

The company will divest a part of its core portfolio across Bangalore and Chennai, it said.

The commercial real estate asset portfolio of RMZ is valued at about $10 billion, according to The Hindu newspaper of India.

The deal involved a sale of 18% of

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