📉 Inflation drops more than expected

The holiday tax break brought down prices in December, plus more news from across Canada.

Author

Recap Team
January 24, 2025

Good Morning!☀

Ready to kickstart your day? Take 5 minutes to recap all the major news headlines from this week.

🔋But first, fuel your mind: "The essence of investment management is the management of risks, not the management of returns." - Benjamin Graham

Top Story

Holiday Tax Break Drives Canada’s Inflation Down to 1.8%

Canada's inflation rate dropped to 1.8% in December, beating analysts' forecast of 1.9%. A temporary GST/HST break helped cool down prices, especially for food and alcohol. Shelter costs remain high and travel service prices increased by 7.9%. While prices decelerated in 6/10 provinces, BC recorded the highest increase, followed closely by Alberta.

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BC News

B.C. Launches Short-Term Rental Registry

British Columbia is launching a short-term rental (STR) registry to boost housing availability and combat illegal rentals. Starting May 1, 2025, STR operators must register and display their provincial registration number on listings. Fees range from $100 to $600 annually with early registration discounts available.

72-Storey Tower Set to Redefine Metrotown’s Skyline

McCarthy Properties has submitted a rezoning application in Burnaby for a 72-storey tower, set to be the tallest in Metrotown. Currently home to the Kingsway Plaza, the new development, named McCarthy Plaza, will feature 469 residential units, including 130 non-market rentals, atop a 12-storey commercial podium.

Luxury Floating Hotel Proposed for Vancouver’s Waterfront

Sunborn International proposes a luxury floating hotel with 250 rooms at Vancouver’s waterfront near the Convention Centre, following successful European ventures. The semi-permanent vessel aims to meet the city’s increasing demand for hotel space, with an opening planned for early 2027, pending municipal approval.

125 Metro Vancouver Projects Expected to Launch in 2025

MLA Canada forecasts continued challenges in Metro Vancouver’s presale real estate market, including investor scarcity and ongoing buyer uncertainty from 2024. Among the 125 projected launches, smaller-scale projects are expected to perform better due to affordability. Resale market improvements are essential for presale growth.

Kamloops Tower Swaps Condo Plan for Premium Rentals

Alyssium tower, part of the $200-million City Gardens development in Kamloops, has shifted from condo plans to rentals due to federal GST exemptions and strong rental demand. The 136-unit, 20-storey tower is under construction and expected to complete in late 2026. The 24-storey Trillium tower will be finished by year-end.

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Ontario News

Ontario’s Population Booms but Housing Falls Short

Ontario’s population grew by 500,000 from June 2023 to June 2024, but only 82,000 new homes were built, despite a need for 200,000 to meet growth demands, reports the Missing Middle Initiative. This highlights a significant housing shortfall, with only 40% of necessary homes constructed, exacerbating the housing crisis.

Toronto Considers Allowing 6-Unit Multiplexes in Scarborough

Toronto’s Planning and Housing Committee is reviewing a proposal to permit five- and six-unit multiplexes in Scarborough North’s Ward 23. A city report indicates that approximately 61% of residential lots in the ward could accommodate such developments. This initiative aims to address population decline and enhance housing options.

Towers Proposed in Mississauga’s Historic Streetsville Area

A proposal for 18- and 22-storey buildings in historic Streetsville, Mississauga, is stirring concerns over its size and density. The site currently houses a single-story commercial building. Concerns focus on potential infrastructure strain and impact on the area’s character. A community meeting is scheduled for February 5.

Troubled Ottawa Development Terminates Purchase Agreements

Buyers in Ottawa's Eastboro development were informed that their agreements are being terminated due to financial and legal complications. The project entered receivership after the builder, Ashcroft Homes, defaulted on a $80M loan. Homebuyers are concerned about the future of their investments, which were made 5-6 years ago.

Kanata Golf and Country Club Redevelopment Moves Forward

The Ontario Court of Appeal has dismissed the City of Ottawa's appeal to prevent the redevelopment of the Kanata Golf and Country Club. This decision allows ClubLink to proceed with its plan to replace the golf course with a 1,480-home development, including townhouses, apartments, semi-detached and detached homes.

Today’s Fun Fact

👉 Did you know Old Quebec is the last walled city north of Mexico? Designated a UNESCO World Heritage Site in 1985, the area has retained its colonial architecture for over 400 years. The walls acted as the area’s defence system between 1608 and 1871.

National News

Canadian CRE Investors Remain Cautiously Optimistic

The Altus Group’s Q4 Canada CRE Industry Conditions and Sentiment Survey highlights mixed market views. While cost concerns persist, 77% of respondents plan transactions within six months, up from 67% last year. Multifamily remains favoured, with 72% expecting strong sector performance. Recession fears have risen slightly to 51%.

Save These Dates

January 29, 5:45am | BoC Monetary Policy Report

January 29, 6:45am | BoC Interest Rate Decision

You’re all caught up. Enjoy the rest of your day!

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