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📉 Rental market is cooling down
BC government buys 4 acres in Surrey-Langley, heritage sites in Ontario transform into high-rises, Canadians struggle to service their mortgage debt, and more news from across Canada.
Recap Team
September 13, 2024
Good morning!☀️ Ready to kickstart your day? Take 5 minutes to recap all the major news headlines from this week.
🗞️ BC News
Province Buys 4 Acres Along New SkyTrain to Build 700 Homes
The BC government has purchased 14 properties covering 4 acres of land near future SkyTrain stations along the Surrey-Langley extension to support the development of over 700 homes. This is part of a larger effort to build 10,000 homes around transit hubs in the next 10-15 years.
Nearly 1,200 Rental Homes Planned for Burnaby and Langley
Through BC Builds, nearly 1,200 new rental homes will be constructed in Burnaby and Langley for middle-income individuals, seniors, and families. The initiative aims to provide affordable housing by utilizing underused land, offering repayable loans to builders at favourable rates, and fast-tracking project timelines to 12-18 months.
Industrial Vacancy Rate in Central Okanagan Increases 28%
Central Okanagan’s industrial real estate vacancy rate increased by 28%, largely due to new developments and cautious investor sentiment. Kelowna’s vacancy rate rose to 4.1%, with significant industrial additions like Quail Ridge Business Centre. Despite increased vacancy, building sales totalled $41 million, indicating sustained interest.
Maple Ridge Must Build 28,000 New Homes to Meet Demand
A report suggests Maple Ridge will need 28,000 new homes by 2043 to meet rising demand driven by population growth and affordability challenges. The city aims to increase housing density and implement standardized “building block” designs to speed up construction, focusing on affordable housing for families and seniors.
First Nation Purchases Elements Casino in Victoria
The Snuneymuxw First Nation has agreed to purchase Elements Casino in View Royal from Great Canadian Entertainment. The 4.7-acre property is assessed at $20.8M. This is the nation’s second casino acquisition, following the purchase of Casino Nanaimo in June. Petroglyph Development, the nation’s economic arm, is overseeing the purchase.
Starlight Is Selling 40-Storey Rental Tower in New West
Starlight is selling the 40-storey Aqua Tower in New Westminster just four years after acquiring it. This tower, part of the Plaza 88 development and adjacent to the SkyTrain station, is Western Canada’s tallest rental building. It features 398 units with various sizes, a six-level parkade, and retail space.
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🗞️ Ontario News
44-Storey Tower Approved in Toronto’s Liberty Village
A 44-storey mixed-use rental tower has been approved at 80 Lynn Williams St. The tower will include 520 units, 13 affordable housing options, and a daycare. The building integrates a heritage warehouse, maintaining part of the original structure. The design promotes walking, biking, and public transit, reducing car trips.
Toronto Office Complex Enters Receivership Due to $60M Debt
A two-tower office property at 95-105 Moatfield Drive in Don Mills, owned by NASDAQ-listed Visionary Holdings Inc., was placed under receivership due to nearly $60M in debt owed to the Bank of China (Canada). EY has been appointed as the receiver to manage and possibly sell the property.
Massive 7-Tower Development Proposed in Ottawa
Sobeys is planning a large seven-tower residential development in Orleans. The project will include 1,076 housing units spread across buildings ranging from 7 to 18 storeys, with retail space. The site, located at 1887 St. Joseph Boulevard, will feature a mix of studios and one- to three-bedroom units.
18-Storey Student Residence Proposed Near TMU and UofT
A new 18-storey student residence has been proposed for 307 Sherbourne Street in Toronto, near TMU, UofT, and other schools. The building will offer 223 units, mostly studios, with spaces for bicycles and cars. It aims to address the student housing crisis and help free up traditional rental units.
Two Residential Towers Approved in Stittsville
Ottawa’s committee has approved a controversial Stittsville highrise project, featuring 21- and 12-storey towers comprising 431 residential units. The development on Hazeldean Road sparked opposition from residents concerned about neighbourhood character, traffic, and infrastructure. Despite objections, the committee cited provincial housing mandates and the city’s official plan.
Estonian Developer Acquires High Park Site to Build Towers
Hepsor, an Estonian real estate developer, and Canadian partner Elysium have acquired a development site in Toronto’s upscale High Park neighbourhood. This is Hepsor’s fourth investment in Canada, and further expansion is expected. The project, created through the assembly of 11 properties, will feature two towers of rental apartments.
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📅 Save These Dates
September 17, 2024, 5:30am | Inflation Rate YoY
🗞️ National News
Average Rents in Canada Drop 0.7% Since Record High in May
Average Canadian rents reached $2,187 in August, a 3.3% annual increase. However, rent growth slowed to the lowest rate in nearly three years due to a high number of apartment completions, slowing population growth, and a weaker labour market. Vancouver, Burnaby, and Toronto remain the least affordable markets.
Mortgage-Debt to Income Ratio in Canada is at a Record High
In Q2, household net worth rose 0.2%. The savings rate increased to 7.2% as borrowing slowed, but average mortgage debt grew, reaching $176,525. The mortgage-only debt service ratio is at a record high of 8.18%. The household DSR rose to 14.97%, reflecting higher debt payments relative to disposable income.
Demand is Rising for Self Storage Space in Western Canada
Self-storage development is rapidly increasing in Western Canada. Demand is driven by condo dwellers and small businesses seeking affordable alternatives to expensive warehouses. While areas like South Vancouver are gaining popularity for developing these facilities, some cities, like Squamish, have banned self-storage due to minimal job creation.
💭 Quote of the Day
"Whether you think you can or you think you can't, you're right."
Henry Ford
😯 Random Fact of the Day
Did you know… Warren Buffett bought his first stock at age 11? The legendary investor started his journey early, buying three shares of Cities Service Preferred at $38 per share.
You’re all caught up! Enjoy the rest of your day.✅
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