- Real Estate Recap
- Posts
- 🏡 Building suites just got easier
🏡 Building suites just got easier
Federal government introduces new rules to encourage suites, investors dominate Toronto's condo market, development costs slow down housing in Metro Vancouver, national rents cool down, and more news from across Canada.
Recap Team
October 11, 2024
Presented by
Good morning!☀️ Ready to kickstart your day? Take 5 minutes to recap all the major news headlines from this week.
⚡ Top Story
New Mortgage Rules Make It Easier to Build Secondary Suites
The Canadian government is introducing changes to mortgage insurance rules that allow homeowners to add secondary suites, such as basement suites or laneway homes, to their property. Effective January 15, 2025, this new insured mortgage refinancing product will allow LTV of up to 90% and 30-year amortization.
🔌 Presented by 1440
Looking for unbiased, fact-based news? Join 1440 today.
Upgrade your news intake with 1440! Dive into a daily newsletter trusted by millions for its comprehensive, 5-minute snapshot of the world's happenings. We navigate through over 100 sources to bring you fact-based news on politics, business, and culture—minus the bias and absolutely free.
🗞️ BC News
Development and Amenity Cost Charges Are Slowing Housing
A report highlights how Metro Vancouver’s new DCCs and ACCs increase housing project costs. While municipalities emphasize the need for these fees to fund essential infrastructure, developers are concerned about financial viability due to these expenses, which could slow the housing supply and impact affordability.
Morguard Acquires 20% Stake in Telus Garden Office Tower
Morguard has acquired a 20% stake in Vancouver’s Telus Garden, a Class-AAA office tower developed by Westbank and Telus. The 24-storey building includes 557,255 sq. ft. of office space and 32,855 sq. ft. of retail space. The transaction strengthens Morguard’s presence in Vancouver’s downtown office market.
Burnaby Proposes Shifting to Height-Based Regulations
Burnaby is proposing a development framework shift from density-based to height-based regulations, which could simplify the approval process. This new approach prioritizes building height and public realm integration over FAR. Height limits will vary by zoning district, encouraging better urban design and more transparent planning.
Plans to Densify Downtown West Kelowna Move Forward
West Kelowna residents can provide input on new zoning bylaws after council approved first and second readings. These changes align with the OCP and allow for up to 19-storey buildings downtown. Discussions focused on developer contributions for increased density, with some councillors advocating for higher fees to fund amenities.
Saanich Council Approves 93-Unit Project
Saanich Council approved a 93-unit housing project in Gordon Head despite residents’ concerns about traffic and neighbourhood impact. The development will feature 70 apartment units and 23 townhouses, along with a café and parking. While some councillors raised affordability concerns, most supported the project to address the housing crisis.
Update Your Preferences
You are currently subscribed to our general newsletter. Click here to personalize your experience and tell us what you’re interested in.
🗞️ Ontario News
Report Reveals Investors Own 65% of Small Condos in Toronto
A StatsCan report reveals that 65% of Toronto condos under 600 sq. ft. are investor-owned, compared to 44% for units over 800 sq. ft. The trend is driven by investor demand for small, high-rent units, but low sales and high interest rates are impacting pre-construction investments, slowing new developments.
Study Predicts 2-Bed Rents in Toronto Could Reach $5,600
A Concordia University study projects Toronto’s average two-bedroom rent could reach $5,600 by 2032, a 72% increase from 2023. The report attributes the rise to low supply and high demand, driven by immigration and economic factors. It also predicts a 26% increase to $4,100 by 2027.
Ottawa Prices Remain Flat as Sales and Inventory Rise
Ottawa’s housing market saw a healthy increase in sales, with 1,047 homes sold in September, up 11.4% from last year. Average home prices rose slightly, while the rental vacancy rate remains critically low. Despite policy developments, supply issues persist, hindering progress toward meeting the city’s housing needs.
Feds Plan to Vacate 11M Sq Ft of Office Space in Ottawa
Ottawa’s office market faces major challenges as the federal government plans to cut its real estate footprint by 50%, returning up to 11 million sq. ft of office space to the market over the next decade. Downtown vacancies have reached 11.7%, raising concerns about how to repurpose these spaces.
Elysium and Hepsor Acquire 2-Tower Site in Toronto
Elysium Investments and Hepsor have acquired a multi-tower development site in Toronto’s Mount Dennis neighbourhood. The project will feature two high-rise towers focusing on transit-oriented housing near Mount Dennis Station. Phase 1, valued at $34 million, requires rezoning before construction begins.
📅 Save These Dates
October 15, 2024, 5:30am | Inflation Rate
🗞️ National News
Canadian Rental Market Cools Down in September
The October Rentals.ca report shows that rent growth has slowed to 2.1% in September, with average rents reaching $2,193. Vancouver remains the most expensive city, with a 2-bedroom average of $3,488. National condo rents dropped 1.7% year-over-year, while cities like Saskatoon and Quebec City saw significant rent growth.
Office Demand in Suburban Markets Is on the Rise
According to Colliers, the Canadian office market showed stability in Q3 2024 after years of uncertainty caused by the pandemic and fluctuating interest rates. Vacancy rates are rising more slowly, and suburban office spaces are now tighter than downtown in many cities. The industrial sector has continued to cool.
💭 Quote of the Day
"Success is the sum of small efforts, repeated day in and day out."
Robert Collier
You’re all caught up! Enjoy the rest of your day.✅
😯 Random Fact of the Day
Did you know houses in Japan depreciate? Unlike most markets where houses appreciate over time, in Japan, homes are often considered "disposable" and lose value, while land appreciates.