Nanaimo single-tenant retail on NNN lease sells for $2.65 million

Marcus & Milllichap
Western Investor

Kal-Tire outlet is on Island Highway and on a long-term triple-net corporate lease.

Property type: Retail

Location: 6590 Island Highway N., Nanaimo, B.C.

Type of deal: Off-market with long-term tenant in place.

Price: $2.65 million

Brokerage: Marcus & Milllichap, Vancouver.

Brokers: Jon Buckley, Joe Genest, Curtis Leonhardt and Andrew Gormley (associate).

© 2022 Western Investor

 

Dan Fumano: City of Vancouver touts record housing approvals, but completions lag behind

Dan Fumano
The Vancouver Sun

Opinion: While rental housing approvals surge, completions lag and, many fear, could soon get worse. And no one can live in an approval

 A stalled construction site during the 2022 cement workers strike in Vancouver on June, 2022. Photo by NICK PROCAYLO /PNG

A City of Vancouver news release this year touted 2,956 purpose-built rental homes being approved for construction — “the highest approvals in several decades.” And a news release last year heralded “historic approval numbers.”

 

While this is welcome, approvals are not the only statistic that matters. Figures from the city also show completions of rental homes lag far behind approvals.

And looking ahead, homebuilders, both private-sector and non-profit, warn current and future conditions could mean many recent approvals will never become completions.

City officials share their concerns. In a city with a chronically low rental vacancy rate and expected population growth, a lack of rental construction could make Vancouver’s housing woes worse in the years to come.

Vancouver development permit figures, supplied to Postmedia News upon request, shows the city approved 15,390 units of purpose-built rental housing between 2010 and 2021. But in that time, only 6,249 rental homes were completed — barely 40 per cent of the total approved.

 

This yearly average of roughly 500 rental completions is more than double the previous decade. Between 2000 and 2009, Vancouver’s average rental completions were around 200 homes a year.

But it’s a far cry from the peak before the condo construction boom. Vancouver’s average number of rental completions between 1960 and 1969 was around 2,600 homes a year.

Of course, a unit approved one day won’t be built the next. Construction takes years and there are many reasons for delays. Figures show completions started increasing a few years after approvals picked up, which makes sense.

The worry now is which direction completion numbers might go.

For several reasons, including changing government policies and the advent of condo construction, Vancouver and other Canadian cities built far fewer purpose-built rental homes after the 1970s. In 2010 and 2011, Vancouver built zero.

 

Condos can provide good homes, whether for the owner or on the secondary rental market. But purpose-built rentals provide far more security and stability than rented condos or basement suites, and Vancouver’s planners have crafted programs over the past decade to promote rental construction. Boosting rentals was a major plank of Mayor Kennedy Stewart’s 2018 campaign, and will likely be a key issue in his re-election run this year.

 

Cynthia Jagger at West Broadway and Granville Street. Photo by NICK PROCAYLO /PNG

Recent surging rental approvals suggest those city policies of the past decade had the desired effect, said Cynthia Jagger, a principal at Goodman Commercial, a Vancouver real estate firm specializing in rental buildings and development sites.

“But then you look at completions, and it’s so sad. … We should have been building tens of thousands of units just to catch up. …. But we’re getting 100, 500, 600 at a time.”

In recent years, with low interest rates and supportive  government programs, “the stars were really aligned for rental,” she said, “and we only got 689 completed last year, so it’s a little scary looking forward. … There’s so many headwinds now.”

Many of these headwinds are outside city hall’s control — interest rates, global supply chain issues, the regional labour market.

In 2016, Ottawa unveiled a program for low-cost construction loans for rental projects, which the industry hailed as vital for enabling developments in recent years.

But in this year’s budget, the feds proposed increasing affordability requirements so much that the program is “falling apart,” said Beau Jarvis, president of Wesgroup Properties.
More affordability sounds like a good thing.

 

But, Jarvis predicted, the changes would mean the private sector will simply not build these rental projects.

The low-cost loan program “was working beautifully to the extent we were converting condo projects on transit, into rental. That’s how good the program was. And that’s what you want,” Jarvis said. “But now, right at a time when construction costs and inflation is going through the roof, you’re trying to dial the program to an extent where it makes everything unviable? … They are going backwards.”

“Often times when you see a tick-up in approvals, it’s because the stars are aligned. And then when you see the actual delivery trail off, it’s because those approvals take quite a while, and the stars move away from each other,” Jarvis said. “Even if there’s an approval granted, all of a sudden it doesn’t make sense to move the development forward. And we’re going into that stage right now. Development projects are being shelved.”

 

Some observers — perhaps understandably — are skeptical of such claims, and contend that private-sector developers are just crying foul because their fat profit margins could become slightly thinner. 

 

Simon Davie, CEO of Terra Housing, outside the Wilson Heights Church that created an affordable housing project on their parking lot. Photo by Gerry Kahrmann /PNG

But even non-profits need to make projects financially viable to build them. And the climate looks challenging, said Simon Davie, CEO of Terra Housing and vice-president of Lu’ma Development Management, major local non-profit housing developers.

Increasing construction costs eat into the affordability of finished homes, Davie said, which means fewer of the deeply affordable homes that everyone agrees are badly needed.

“If I’m on the market side, theoretically, if rents keep going up or sales price of condos keep going up, I’ve got a bit of a buffer,” Davie said. “But on the non-profit side, the revenue is pretty fixed. … We can’t just flip a social-purpose real estate into a market condo.”

 

“I think what you’ll find is that projects just don’t come forward,” Davie said. “Some projects are going to stop before they start.”

Unfortunately, Davie said, “The need is not going anywhere. … There’s so much pressure.”

Such concerns are “legitimate and valid,” said Dan Garrison, Vancouver’s head of housing policy and regulation. “Rental projects, in particular, are really sensitive to interest rate changes, so we are hearing from a number of applicants, both private and non-profit, raising concerns about the viability of proceeding to construction on some of those projects, even though they’ve been approved.”

City hall isn’t wrong to tout record-setting approvals. There can’t be any completions without getting approvals first, so for everyone who agrees Vancouver needs more secure rental homes, more approvals is good news.

 

But approvals are only part of the picture. People need affordable, suitable homes. And no one can live in an approval.

[email protected]

twitter.com/fumano

 

More news, fewer ads: Our in-depth journalism is possible thanks to the support of our subscribers. For just $3.50 per week, you can get unlimited, ad-lite access to The Vancouver Sun, The Province, National Post and 13 other Canadian news sites. Support us by subscribing today: The Vancouver Sun | The Province.

© 2022 Vancouver Sun

Metro Vancouver plans new $40-million park with camping on Bowen Island

Tiffany Crawford
The Vancouver Sun

The preliminary concept for the park includes day-use picnic areas, trails with ‘impressive viewpoints,’ access to the beach, and a supervised overnight camping area.
Metro Vancouver is buying 97 hectares of land for a new regional park on Bowen Island jpg
Metro Vancouver is planning to buy $40 million worth of land on Bowen Island to turn into a regional park that will include camping areas.
The regional district said Wednesday that it plans to purchase 97 hectares, or 24 parcels of land, at Cape Roger Curtis on the waterfront for a park that will incorporate both day use and overnight camping.
“Regional parks safeguard natural areas that are home to important ecosystems and contribute to the health and well-being of our residents by connecting them with natural spaces,” said Sav Dhaliwal, chair of Metro Vancouver’s board of directors, in a statement.

Metro Vancouver is buying 97 hectares of land for a new regional park on Bowen Island jpg
He said the park supports climate action and regional growth targets. Metro Vancouver is looking for other funding partners to help acquire and develop the regional park.
The park is located within Skwxwú7mesh úxwumixw/Squamish Nation territory, and Metro said discussions are underway for the development and stewardship of the park.
“This regional park will make it easier for current and future generations to enjoy nature and help to preserve the coastal ecosystem, which the Squamish Nation has stewarded since time immemorial,” said Skwxwú7mesh úxwumixw/Squamish Nation spokesperson Sxwíxwtn, in a statement.
“We look forward to working in partnership with Metro Vancouver and Bowen Island Municipality to see how we can incorporate our language and culture in the park planning process.”

The preliminary concept for the park includes day-use picnic areas, trails with “impressive viewpoints,” access to the beach, and a supervised overnight camping area with three group camps, as well as around 50 walk-in/bike-in tent sites, 35 accessible drive-in tent sites, and 10 tent cabins, according to Metro Vancouver.

Recreational vehicle and trailer camping will not be permitted. If the land is successfully added to the Metro Vancouver regional parks system, planning and design will continue through 2023, the regional district said.
“This new regional park initiative is incredible news, not just for Bowen Island, but for the entire region,” said Gary Ander, mayor of Bowen Island Municipality. “Cape Roger Curtis holds some of the most unique ecological characteristics in the region — and this park enhances local efforts by the Bowen Island Conservancy and many islanders to protect the area.”

© 2022 Vancouver Sun

Edmonton land sales surge to $159M in second quarter

Frank O’Brien
Western Investor

Land sales have bounced back to pre-pandemic levels in Alberta’s capital

 Air Products Canada headlined the Edmonton land action with a $399,627-per-acre purchase of 150 acres at 13004 33 Street NE | Submitted

Edmonton real estate investments bounced back from a slow start to the year with a surge in commercial real estate transactions in the second quarter (Q2) – and strong land demand was among the highlights.

Second-quarter 2022 total investment jumped by more than $930 million to $1.46 billion, reports the Network, which tracks Alberta commercial real estate market.

 “This dramatic turnaround was fueled in large part by a renewed appetite for industrial and multi- family properties, as well as strong demand for land. These three asset classes increased by $440 million, $180 million and $159 million respectively,” noted Network president Nathan Gettell.

Coming out of a two-year trough, the land asset class saw transactions double from the $78.8 million seen in the first quarter. Year-to-date total dollar volume of land sales made a major upswing as a result, surpassing a four-year record of $233.4 million set at the mid-point of 2019.

The stand-out land transaction of 2022 to date is the $60 million ($399,627/acre) purchase of 150 acres at 13004 33 Street NE by Air Products Canada Ltd. The land is destined to become the site for a major hydrogen power project.

Air Products is building the world’s largest net-zero hydrogen network at the northeast Edmonton site. The company said the $1.3 billion facility, expected to be operational in 2024, will make Edmonton the centre of western Canada’s hydrogen economy and set the stage for Air Products to operate the most competitive and lowest-carbon-intensity hydrogen network in the world.

“By being a first mover and investing in this innovative landmark project, we are paving the way for hydrogen from Edmonton to meet industrial and transportation needs throughout western Canada,” said Air Products CEO Seifi Ghasemi.

Edmonton land is also being purchased for residential development. An example is the sale of 60.6 acres of agricultural land at 18103-17 Street NE, Edmonton. Bought for $3.35 million in the first quarter of this year, it has the potential for a residential subdivision, according to Avison Young, Edmonton, which brokered the sale.

Quarter-over-quarter commercial real estate investment in Edmonton were up across the board as of June 30, with even the office sector seeing approximately $35 million in new purchases. Retail saw approximately $80 million in new investment and commercial condominiums saw a $25 million increase in dollar volume.

Year-over-year sales activity increased by more than 120 per cent overall, with both transaction volume and dollar volume marking the best mid-year level seen since 2020.

 

© 2022 Western Investor

Pre-sale condo buyer skeptical about down payment as Coquitlam building stalls for three years

Susan Lazaruk
The Vancouver Sun

The unforeseen delays, caused by a new layer of B.C. red tape and months of COVID shutdowns, shows how developers’ plans can be disrupted between the signing of a pre-sales agreement to the actual move-in date

 Gerry Evans of Ladner and his wife Lillian Liu. Photo by Francis Georgian /PNG

A Ladner couple who put down a deposit on a studio unit in an unbuilt Coquitlam condo tower just before the COVID-19 pandemic are worried about their investment as delays push back construction.

Gerry Evans and his wife, Lillian Liu, were told when they signed the pre-sale contract for Horizon 21, a 21-storey building with close to 150 units, in February 2020 that the tower would be complete in early 2023.

But construction hasn’t started yet and the building that still occupies the site at Blue Mountain Street and Lougheed Highway hasn’t been torn down.

“I know these things happen, I did a pre-sale before,” said Evans, who has so far put down about 10 per cent of the cost of the studio unit, about $40,000. “But I have never seen these kinds of delays. If there’s potential for the deal not to go through to completion, I’m not sure if I want to do the next payment and be the dumb guy who loses his money.”

The unforeseen delays, caused by a new layer of B.C. red tape and months of COVID shutdowns, is an example of how developers’ plans can be disrupted between the time pre-sales agreements are signed and the actual move-in date. 

Gerry Evans of Ladner and his wife Lillian Liu at 154 Blue Mountain (Blue Mountain and Lougheed Hwy), Coquitlam. Photo by Francis Georgian /PNG

The main issue causing the delay is a new site disclosure statement that B.C.’s Environment Ministry invoked in 2021 as a screening-tool requirement for potentially hazardous building sites. That issue has been resolved, Andrew Wong, a spokesman for the developer, Centred Developments, said Wednesday.

Wong said the developer couldn’t get a building permit from the City of Coquitlam until the site disclosure statement was approved. The developer submitted it in February 2021 and it was approved in late June or early July.

Wong said that means the demolition of the building can go ahead.

He couldn’t disclose when ground would be broken on the mixed-use tower with 142 condo units, four retail units and five second-floor office units as well as a three-storey building with eight townhouses.

The original disclosure statement sets Jan. 31, 2024, as the “outside date” for completion, which is 18 months away.

Wong said it’s likely the disclosure statement would be amended to extend that date, which he said is a common occurrence with projects.

The B.C. Financial Services Authority, which oversees different financial sectors, has a lengthy checklist of what to watch for and how to ensure provincial safeguards under the Real Estate Development Marketing Act that protect pre-sale buyers’ deposits and other aspects of the sale.

 Gerry Evans of Ladner and his wife Lillian Liu. Photo by Francis Georgian /PNG

Mike Stewart, an Oakwyn Downtown Realty realtor who specializes in pre-sale purchases, said it’s important to work with specialists who can explain the disclosure statement and ensure the buyer understands it before the end of the seven-day cooling off period for sales.

“If there are parts they don’t understand, they should ask their realtor, and they should also have it reviewed by a lawyer,” he said.

And he said it’s important for buyers to research the developer before they sign a contract.

“If they’re a smaller developer, find out who they are and find out what their track record is,” he said.

He said delays during a project aren’t uncommon. 

Wong said he kept all buyers apprised periodically of the reason for the delay.

Even after learning this week that the city building permit was finally granted, Evans said he is still “skeptical and worried” about the status of the condo project.

“It’s been frustrating and stressful on me and my wife,” he said.

More news, fewer ads: Our in-depth journalism is possible thanks to the support of our subscribers. For just $3.50 per week, you can get unlimited, ad-lite access to The Vancouver Sun, The Province, National Post and 13 other Canadian news sites. Support us by subscribing today: The Vancouver Sun | The Province.

© 2022 Vancouver Sun

Canadian homebuyers moving back to fixed-rate mortgages amid recession fears

Nichola Saminather
other

Canadian home buyers are shifting to fixed-rate mortgages at the fastest pace in a year, on bets that more rate hikes from the central bank are in store to bring inflation under control, even as the cost of these home loans remains close to the highest level since 2009.

Borrowers are also increasingly eschewing the popular five-year fixed mortgage term in favor of two- or three-year loans, to guard against the possibility that the Bank of Canada’s rapid rate hikes push the economy into a recession and result in another easing cycle.

More than half of Canadian home buyers opted for variable-rate mortgages since July 2021, as these became cheaper relative to fixed.

Read more: Freeland vows more action on housing if needed. What have the feds done so far?

Now, that is reversing, returning to the historic norm. Fixed-rate mortgages made up 49% of all home loans in May, according to the latest data from the Bank of Canada, up from 43% in March, the lowest proportion since the Bank began tracking the data in 2013.

 

James Laird, co-founder of mortgage rate comparison site Ratehub.ca said the trend has continued, estimating that fixed-rate mortgages accounted for more than half of all new home loans in July.

“If (current economic conditions are) keeping you up at night, the best thing to do is get a fixed-rate mortgage and forget about it,” Laird said.

Borrowers are increasingly opting for this certainty, even though the fixed rate is still just a sliver below a 13-year peak hit in mid-July. This means they could face elevated payments for longer if rates do decline in the next two to three years. Refinancing can be a somewhat costly option.

The best discounted five-year fixed rate is 4.24%, while the variable rate is 3.5%, the narrowest gap since September, another factor driving more borrowers to the former. 

 

Variable loans are tied to the Bank of Canada’s benchmark rate, which is up 2.25 percentage points since March. Fixed rates move alongside longer-term bond yields, which have fallen below shorter-term yields, a sign that markets fear a recession.

Michael Driscoll, head of North American financial institutions at DBRS Morningstar, said if the economy slips into recession due to aggressive interest rate hikes, fixed-rate borrowers will be locked into higher payment even when variable rates come down, which would crimp their spending elsewhere.

 

 

While higher delinquencies and associated losses are inevitable when rates rise rapidly, the financial system is unlikely to take a hit given the significant equity that backs these mortgages, Driscoll added.

Canada’s biggest banks’ outstanding uninsured mortgages, which account for the majority of their portfolios, equate to about 50% of the value of the homes they’re backed by, according to their latest financial statements. The loan-to-value ratio on new originations is at or below 70%. Uninsured mortgages require a down payment of at least 20%.

Read more: Home ownership for some Canadians continues to be out of reach. Here’s why

Borrowers are also increasingly considering shorter-term fixed-rate home loans, which have typically been seen as riskier as they expose them to higher rates upon expiry, but the current environment is making them more appealing.

Mortgages of less than five years made up 53%  of fixed-rate home loans in May, from 51% in January, Bank of Canada data shows.

“In January, it was ‘give me your lowest rate and lock it in for as long as you can’,” said Mark Ostland, director of mobile experience at Meridian Credit Union. But now, “we’re having tons of conversations, and… definitely, a shorter term is in that conversation.”

 

© 2022 Reuters

Three questions with Andrew Lis

REBGV Staff
REBGV

REBGV’s new Director of Economics and Data Analytics, Andrew Lis, joined REBGV in July. He’s an applied economist and data scientist specializing in real estate and urban land economics.
We asked Andrew three questions to help you get to know him better and preview some of the things he’ll be working on at the Board. Here’s what he told us.
What interests you about economics and analyzing economic data?
The stories behind the numbers.
Many people think data provides immutable answers to questions, and in some cases that’s true. But data doesn’t just exist in the world as if borne from thin air. Behind every data point is a data-generating process, and behind that, is a story. 
So, for me, the fun in what I do is in painting compelling and engaging pictures of what the world around us looks like, by uncovering the stories behind the data. 
In your opinion, what economic indicators are the most telling about what’s happening in the real estate market?
I think most people would focus on average (or median) prices and sales volumes. We certainly see lots of discussion about it in the media.
But from my experience, I could probably tell you what’s happening to both prices and sales (and other indicators) by simply knowing the current and historical values of one single indicator: inventory.
“If you look at real estate data for long enough, you’ll find that the one data series that contains a considerable amount of ‘predictive power’ is inventory. Low inventory scenarios are typically brought about by strong demand, which is typically synonymous with high sales volumes. Under these scenarios, prices tend to rise – sometimes dramatically, as we’ve seen in recent years. “
The converse of this is generally true as well, with the caveat that prices tend to be much more ‘sticky’ downward than they are upward. But by knowing how much inventory there is online at any given time relative to the past, one can infer quite a lot about the current state of the market.
What projects are you working on now?
There’s a ton of interesting projects already happening here at the Board that I’ve jumped into. Here’s a quick sampling:
Getting up to speed with the Board’s strategic plan and other organizational policies.
Reviewing and examining the previous economics and data-related work for ways to continue or expand upon it. 
Developing new communication strategies to share our data and findings with our members and the public. 
Building an Economics department at REBGV. This will be the bulk of my long-term work here and I have no shortage of ideas and directions! 
I’m excited to join the Board and I really appreciate the support I’ve received from management, staff, and the members I’ve been able to interact with so far. One of the great things about this new role is all the opportunities to do more of what I really enjoy doing, which I’m confident will translate to valuable resources and insights for members and audiences beyond. 
And being a part of a member-focused organization like REBGV, I’m excited to hear from you too! If you have questions, thoughts, or just want to reach out and introduce yourself, don’t hesitate! Email me at [email protected].

©’REBGV’ is a registered trademark.

Rent or Buy? Average Monthly Rental Prices vs. Monthly Mortgage Payments in the GTA

Patti Cosgarea
other

As interest rates continue to rise this year, many are shifting their real estate goals from buying to renting. Although, according to the Toronto and Greater Toronto Area (GTA) Rent Report from TorontoRentals.com, average rent prices in the GTA are up 19% annually. On the other hand, average home sale prices have been coming down month-over-month in numerous cities in the GTA, leaving many wondering if now is the right time to buy or continue renting. We compared the most recent available data of June rental prices and average July home prices to determine which cities are worth buying or renting in.  The average monthly mortgage payments were calculated assuming a 20% down payment, 30-year amortization, and a 5-year fixed interest rate of 4.49%

• Read: Where Can You Buy a Home on a Single-Income in Canada in 2022? [REPORT] 

The Average Rent for All Property Types in the GTA is Up by 19%

The June 2022 rental report found that the average rent for all property types in the GTA increased by 19% year-over-year, for an average of $2,403 per month compared to $2,018 per month in June 2021 for all property types. June 2022 saw the second highest monthly rental price growth rate in over three and a half years of 3.1%, following May’s 5.7% month-over-month increase. 

• Read: The Most Expensive and Affordable Homes Sold in July in the GTA

The cost per rental unit depends on a variety of factors including the type of property, location, and the number of bedrooms. For example, basement apartments are the most affordable rental property type at an average of $1,815, whereas renters of single-family homes can expect to pay an average of $3,389. The average rental price for all property types has grown in June 2022 compared to June 2021. 

Sale Prices in Toronto and the GTA are Dipping Month-Over-Month 

Toronto Regional Real Estate Board’s (TRREB) July report found that condo apartments are the most affordable property type for prospective home buyers in Toronto and the GTA. Condo apartments in Peel Region and York Region are the most affordable, with average prices of $616,876 and $687,843 respectively. In Toronto, the average price was $744,092. 

• Read: 10 Canadian Regions with Below Average Home Prices and the Homes You Can Buy There

The demand for condo apartments has grown, and they are currently the second most in-demand property type in Toronto and the GTA, second only to detached homes. It seems more people are choosing to buy condo apartments compared to renting them, but how do the monthly mortgage payments compare to monthly average rental prices? 

Average Rent of Condo Apartments in Toronto and the GTA Compared to Average Monthly Mortgage Payments 

Mississauga and Oshawa stand out as the cities where buying is more affordable than renting. For Brampton and Toronto, the price difference is relatively small, and as rent prices are projected to continue increasing, purchasing in these cities may lead to long-term savings. On the other hand, in Oakville, the price to own is substantially higher than to rent which may be driven by the demand to buy condo apartments in the city. 

With any home purchase, there are other costs associated including saving for a down payment and legal fees, but if you’re on the fence as to whether you should buy or rent, speak to a real estate agent to understand your options and download our free Buyer’s Guide to learn more.

Considering Getting Into The Market This Summer?

Sign Up for a Free Buyer Consultation

© 2015 – 2022 Zoocasa Realty Inc., Brokerage

Rent or Buy? Average Monthly Rental Prices vs. Monthly Mortgage Payments in the GTA

Patti Cosgarea
other

As interest rates continue to rise this year, many are shifting their real estate goals from buying to renting. Although, according to the Toronto and Greater Toronto Area (GTA) Rent Report from TorontoRentals.com, average rent prices in the GTA are up 19% annually. On the other hand, average home sale prices have been coming down month-over-month in numerous cities in the GTA, leaving many wondering if now is the right time to buy or continue renting. We compared the most recent available data of June rental prices and average July home prices to determine which cities are worth buying or renting in.  The average monthly mortgage payments were calculated assuming a 20% down payment, 30-year amortization, and a 5-year fixed interest rate of 4.49%

• Read: Where Can You Buy a Home on a Single-Income in Canada in 2022? [REPORT] 

The Average Rent for All Property Types in the GTA is Up by 19%

The June 2022 rental report found that the average rent for all property types in the GTA increased by 19% year-over-year, for an average of $2,403 per month compared to $2,018 per month in June 2021 for all property types. June 2022 saw the second highest monthly rental price growth rate in over three and a half years of 3.1%, following May’s 5.7% month-over-month increase. 

• Read: The Most Expensive and Affordable Homes Sold in July in the GTA

The cost per rental unit depends on a variety of factors including the type of property, location, and the number of bedrooms. For example, basement apartments are the most affordable rental property type at an average of $1,815, whereas renters of single-family homes can expect to pay an average of $3,389. The average rental price for all property types has grown in June 2022 compared to June 2021. 

Sale Prices in Toronto and the GTA are Dipping Month-Over-Month 

Toronto Regional Real Estate Board’s (TRREB) July report found that condo apartments are the most affordable property type for prospective home buyers in Toronto and the GTA. Condo apartments in Peel Region and York Region are the most affordable, with average prices of $616,876 and $687,843 respectively. In Toronto, the average price was $744,092. 

• Read: 10 Canadian Regions with Below Average Home Prices and the Homes You Can Buy There

The demand for condo apartments has grown, and they are currently the second most in-demand property type in Toronto and the GTA, second only to detached homes. It seems more people are choosing to buy condo apartments compared to renting them, but how do the monthly mortgage payments compare to monthly average rental prices? 

Average Rent of Condo Apartments in Toronto and the GTA Compared to Average Monthly Mortgage Payments 

Mississauga and Oshawa stand out as the cities where buying is more affordable than renting. For Brampton and Toronto, the price difference is relatively small, and as rent prices are projected to continue increasing, purchasing in these cities may lead to long-term savings. On the other hand, in Oakville, the price to own is substantially higher than to rent which may be driven by the demand to buy condo apartments in the city. 

With any home purchase, there are other costs associated including saving for a down payment and legal fees, but if you’re on the fence as to whether you should buy or rent, speak to a real estate agent to understand your options and download our free Buyer’s Guide to learn more.

Considering Getting Into The Market This Summer?

Sign Up for a Free Buyer Consultation

© 2015 – 2022 Zoocasa Realty Inc., Brokerage

Elevators out in 20-storey West End condo tower? Call the fire department

Joanne Lee-Young
The Vancouver Sun

Strata manager’s note says maintenance company troubleshooting the problem, but adds ‘currently no diagnosis nor ETA for the elevator service to be restored’

The second of two elevators at The Sterling, a 20-storey condo building at 1050 Smithe St., went out of service last week. The other elevator has been shut down for far longer. Photo by Arlen Redekop /PNG
One of the elevators in a 20-storey condo called The Sterling in the West End has been broken for months. Then last week the remaining elevator also got shut down.
This has residents trekking up and down the staircase with no indication of when the elevators might be back in service.
“Right below me is an elderly couple. That’s the thing I am most concerned about. I’m not happy about hoofing it up all these floors, but I can do it,” said resident Dave McKay, who is in his 40s and lives on one of the higher floors in the building, which was completed in 2005.
There are people in the building with young children, persons with disabilities and pets that have to be taken out every day, he said.
A note from the strata manager says an elevator maintenance company is troubleshooting the ongoing issue with the remaining elevator. It also says there is “currently no diagnosis nor ETA for the elevator service to be restored.”
It also adds that if assistance is required while the elevator is down, and it’s not possible to use the stairs, residents should contact the fire department for assistance.
“They shouldn’t be saying that. We aren’t going to be doing that. Of course, if there’s an emergency or a medical call, our crews will be there,” said Matthew Trudeau of Vancouver Fire and Rescue Services.
He said city inspectors can follow up and ask questions about timelines and confirm that reasonable actions are being taken to restore service by requiring copies of receipts and work orders.
In February 2021, Vancouver city council passed a motion to ensure residents with health and mobility issues have support when building elevators break down. This was billed as a good first step to addressing concerns raised by seniors living in low-rise buildings and city councillors Jean Swanson and Christine Boyle.
But last April city staff reported back and said the city doesn’t have the authority to compel building owners to have plans in place and assist residents when elevators are out of service.

The entrance to 20-storey Sterling condominium tower at 1050 Smithe St. in the West End, where both elevators are out of service. Photo by Arlen Redekop /PNG
According to the relevant section in the Vancouver Charter, council can only make bylaws requiring elevators be maintained in an operational condition at all times and repairs be undertaken and completed as quickly as possible.
The city has developed resources to encourage building owners to assist residents and to inform residents on how to be prepared and what to do.
The April 2022 memo from staff to council noted it is difficult to estimate the number of people severely affected by elevator service outages and the city lacks data on the number of residential buildings that have only one elevator. It said the city’s online and 311 complaint data from the last five years (2018 to March 2022) show an average of 20 complaints received each year about elevators in residential buildings, with about 10 per cent of these complaints being from seniors and persons with disabilities.

While newer elevator systems can be less reliable and need more maintenance, it can be hard to find parts for elevators that are older. In general, there is a shortage of elevator companies, technicians and tradespeople at the same time that more people are living in apartments and condos. The rights and responsibilities of condo homeowners are not mandated by municipalities, but governed by the province under the Strata Property Act.
Beyond this, it’s a complicated situation for inexperienced managers and strata councils to handle, according to Tony Gioventu, executive director for the Condominium Home Owners’ Association.
“Elevator contracts are incredibly complicated, and they result in serious contract deficiencies and disputes with owners because of exclusive and proprietary exclusions. I strongly recommend strata councils consult with a shrewd, experienced lawyer familiar with these types of negotiations,” said Gioventu. “Rates can be out of control, with no accountability in the contracts for failure to provide reliable services.”
FirstService Residential manages the building and said it is an agent of the strata corporation, which did not reply to Postmedia’s questions on Tuesday.

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