Vancouver among most overpriced real estate markets

Rome landed at No. 2 with a P/E of 50.51; it's a slow growth market, which remains very expensive. Representing North America in the world's top 10 were Los Angeles (5th place at 26.88) and Vancouver (6th at 26.81). For a list of America's most overpriced real estate markets. Many of the world's most expensive markets, such as London and New York, didn't make the top 10, and were beaten out by less expensive markets that had lower yields and smaller rates of appreciation.

Suite success

Bennett believes real estate in Toronto is still undervalued, and therefore, a good investment. Catering to people on the move is usually good business sense. Entrepreneur Anne Bennett has found her business success by combining choice real estate with hospitality and service. Bennett says her future plans include expanding Premiere Executive Suits into Markham in September 2007.

Real estate market preparing for Hebron

Real estate is a strong signal of a prosperous economy. Take, for example, the cost of real estate in the oil boom areas of Alberta. Getting a high paying job in those areas is not a problem. Finding a place to live is. Compare that to some rural areas of Newfoundland and Labrador where you can buy a moderate-sized home for a fraction of what it would cost in Alberta. But in growth centres such as Clarenville and Arnold's Cove the real estate market has remained strong. That market will likely get stronger thanks to last week's Hebron announcement.

FALL OF THE REIT

On average, Canadian REITs are now trading at a discount to their net asset value, creating value for a buyer. RBC Capital Markets said in a recent report that the average Canadian REIT is trading 4% below its net asset value while the long-term trend is for Canadian REITs to trade at 6% above. Blake Hutcheson, the Canadian president of CB Richard Ellis, said there is no question the drop in value does create some buying opportunities for private investors. "You have to wonder whether it is a good buying opportunity in the capital markets," said Mr. Hutcheson, noting real estate fundamentals are "fabulous" and the brokerage/leasing industry is having a "monumentally" good year.

For the real money shot, hire a pro

VANCOUVER — Photographer Russ Heinl is known for his aerial work on five films and 11 glossy picture books, including the popular Over Canada: An Aerial Adventure. But these days, he says, he's busy in the helicopter taking bird's-eye photos of sumptuous real estate. In the past three months, the Vancouver Island-based photographer has shot about a dozen houses priced from $7-million to $28-million, all in British Columbia.
"Business is going crazy," Mr. Heinl says of his real-estate photography work. The market is becoming very sophisticated, he adds, and his clients expect a high level of professionalism. "It's got to be as slick as a Lexus commercial."

Chartwell talking to potential buyers

TORONTO (Reuters) - Chartwell Seniors Housing Real Estate Investment Trust said on Wednesday it has supplied information under confidentiality agreements to several parties that may be interested in buying the company. The trust said a special committee it has set up continues to review a number of strategic alternatives, including a potential sale of the company, following the federal government's announcement last autumn that it will start taxing publicly traded income trusts.

Real estate group predicts record home sales in Canada

TORONTO (CP) - Home buyers in Canada will shrug off stock market volatility caused by the U.S. subprime mortgage crisis and drive up both the number of homes sold and average resale prices across the country to record levels this year, the Canadian Real Estate Association predicted Monday. Powered by frenzied resale activity in the first six months of the year, overall national sales should rise 8.1 per cent in 2007 to just over 523,000 units, with records set in most provinces as well, the association said.
In addition, the average price of a home is expected to rise by about 10.4 per cent to just under $306,000, with oil-rich Alberta leading the way as prices in that province go up almost 25 per cent on top of last year’s eye-popping 31 per cent increase.

Ottawa sells buildings in $1.64B lease-back deal

The federal government has sold nine office properties to a Vancouver-based real-estate company for $1.64 billion, but will lease them back for the next 25 years. Larco Investments Ltd. made the purchase after what the government called "an extensive open, transparent and competitive process" involving properties in Vancouver, Edmonton, Calgary, Toronto, Ottawa and Montreal. Public Works Minister Michael Fortier says the government sought independent advice from Deutsche Bank before making the sale, concluding it is a fair deal for taxpayers, particularly since markets were favourable at the time.

Edmonton the hottest housing market in Canada.

As the Journal's Ron Chalmers reported a couple of weeks ago, the latest monthly stats from the Realtors Association of Edmonton show average single-family house prices slipped $115 to $417,150 in July, while condo prices rose 2.5 per cent to $271,908.
Gregg Becker, Jayman MasterBuilt's Edmonton-area general manager, sees the same trend unfolding. "We're looking at inventories now that are higher than anything we've seen since 1994. We also saw a resale price drop in June for the first time in a long while, and a lot of the major home builders are sitting with a good number of homes in inventory," he notes.

Canada federal offices sell for $1.64B

The federal government is selling nine office complexes, including two in Ottawa, to a private Vancouver developer for $1.64 billion -- $400 million more than the appraised value for the properties. At the same time, the union representing many of the federal workers in the buildings labelled the deal "a give-away of colossal proportions."
The deal involves the sale of government property to Larco Investments Ltd., but also requires the federal government to lease back the office space for 25 years. That substantially reduces the risk to the new private owner.

Canada real estate is hot-hot-hot

Canadians seem to be in the throes of a home-buying frenzy. The most intense activity is in cities in western Canada. The number of home-sale transactions in Canada is projected to rise by 8% this year (as opposed to a 5.7% decline in the U.S. seen by the National Assn. of Realtors). And the average price, nationwide, should pop up by 9.5% to about $285,000. (The realtors association doesn't calculate a U.S. average sale price, but it predicts that the 2007 median -- the point at which 50% of homes sold for less and 50% for more will decline 1.4% this year, to $218,800.)

Real estate spinoff $220m a year in Nova Scotia

The economic spinoff from real estate sales in Nova Scotia tops $220 million annually, according to a recent report by Altus Clayton Research. The study, released by the national agency earlier this summer, found that the average housing transaction in the province generated $20,300 in spending beyond the purchase of the home and property.

The Toronto housing market hit a record in early August.

The Toronto Real Estate Board reported yesterday 3,838 properties were sold at an average price of $355,829 in the first half of August. The number of resales was up 17 per cent from the same time in 2006. "Secondly, the luxury market is not a trendsetting segment that is large enough to impact other segments of the housing market." The real estate board said sales rose significantly in early August in west Agincourt, Rexdale, the downtown core and south Richmond Hill.

Canadian Hotel Income Properties

This time it was the British Columbia Investment Management Corp., with $85-billion in assets under management, that snagged Vancouver-based CHIP Real Estate Investment Trust with a $19.10-a-unit offer, a 22% premium over what the REIT was trading at before it announced March 27 that it was considering a strategic review that could include a sale. The decision by CHIP to consider a possible sale came as the federal government introduced new guidelines to qualify for REIT status and a huge tax advantage. Ottawa has demanded that 95% of any REIT's income come from "passive investments," basically rent, but also has said hotel income doesn't qualify.

Hot summer... for real estate

These days, the average home stays on the market for 38 days, according to the Real Estate Board of Greater Vancouver. “People are looking for value in the market, they are looking for good value and they find it here in Richmond,” she said, noting the coming improvements to local rapid transit, such as the Canada Line. “We definitely are building more multi-family (residences) and people are recognizing that this transportation linkage is very important.”

Canadian housing starts move lower in July

Canada's federal housing agency said home starts will decline this year and next because of higher housing costs and mortgage rates, while sales of existing homes and spending on renovation will keep rising. Construction of new homes will decline to 220,000 units this year from 227,395 in 2006, and then to 207,200 units in 2008, the Ottawa-based Canada Mortgage and Housing Corporation said today. Starts will decline in every province except Quebec, Manitoba and Saskatchewan.

The condo house

"Every condominium, any condominium, it's a lifestyle choice," says Josh Nelson, who specializes in condos for Ripco Real Estate in Calgary. "It's wanting certain things done for you. That'll go anywhere across the country." But what if you could have a house with the services of a condo? Which brings us back to Rosedale. The $5.5-million home is a blend of condominium and freehold house. As an optional feature, the purchaser can have all the perks of condo living -- landscaping, maintenance, even a concierge -- while owning the home outright.

Toronto most expensive condo

In the battle for one-upmanship in Toronto's luxury real estate market, Alex Shnaider has revealed a convincing hand. The enigmatic Toronto billionaire says in an exclusive interview he has decided to keep what has been billed as Canada's most expensive condominium, valued at up to $20 million, at the Trump International Hotel & Tower for himself. A work in progress, his mansion in the sky could be as large as 14,000 square feet, and will have, in some areas, soaring 9-metre ceilings.

Toronto midtown housing prices top $1 million

Average detached home prices in north central Toronto, particularly along the Yonge Street corridor, nudged above the million-dollar mark in the first half of 2007, according to Toronto Real Estate Board and RE/MAX Ontario Atlantic Canada. The area - which encompasses such tony neighbourhoods as Forest Hill, Chaplin Estates, Deer Park and Cedarvale - saw average home prices increase by nearly 17 per cent, from $895,000 to $1,046,500, the largest such jump among 62 Toronto Real Estate Board districts. According to RE/MAX spokesperson Christine Martysiewicz, the increase could be attributed to the three Ls of real estate: location, location, location.

Ottawa's sell-off smart move

Federal Public Works Minister Michael Fortier is apparently close to moving ahead on the planned sale of nine federal government buildings in prime locations in Vancouver, Edmonton, Calgary, Toronto, Ottawa and Montreal. The total estimated value: $1.4 billion. With real estate markets red hot in most cities, there is every indication these buildings, including Canada Place in Edmonton and the Harry Hays building in Calgary, will fetch top dollar.

Toronto's best return on investment neighbourhoods in 2007

RE/MAX Ontario-Atlantic Canada: In total, 56 of the 62 Toronto Real Estate Board Districts examined reported an increase in the average price of a single-detached home between January to June 2007, compared to the same period one year ago.
Three of the top five were located in TREB's Central District, while the remaining two were located in the North and West Districts. Leading the charge was Forest Hill, Chaplin Estates, Deer Park, and Cedarvale (C03) with a 16.8 per cent increase over one year ago, bringing average price to a just over one million dollars.
Thornhill, Vaughan (N02) followed in second place with an average price of $565,428, up 15 per cent versus the same period in 2006. South Hill, Annex, Yorkville (C02) claimed third spot, with an average price of $883,869, 14.3 per cent ahead of one year ago, while C07 (Lansing, Willowdale,
Newtonbrook) reported a 12.2 per cent upswing to $618,179. Port Credit,
Mineola (W12) secured the fifth position, with an average price 11.3 per cent
ahead of last year's figure at $581,167. Close to half of all GTA districts
are now reporting a single-detached average price in excess of $500,000.

Canada’s Housing Market Forecast to Perform Strong and Steady

Canada’s resale housing market finished the second quarter on strong and steady footing; surprising many by its astounding momentum. Healthy and robust conditions are expected to prevail through to year’s end as all regions are poised to experience a rise in average house prices, with double-digit gains forecast for Edmonton, Calgary, Winnipeg and Regina, according to a report released today by Royal LePage Real Estate Services. Echoing the growth and activity experienced in all Canadian markets in the first half of the year, the national average house price is forecast to rise by 9.5 per cent, passing the $300,000 mark for the first time, to $303,300. Home sale transactions are projected to rise by 8 per cent to 522,306 unit sales by the end of 2007.

Toronto housing sales set a July high

The Toronto real estate market continued to sizzle through the mid-summer, setting a record high for the number of sales in July. The Toronto Real Estate Board said yesterday there were 8,912 sales in July, a 26-per-cent increase over the same period last year. Board president Donald Bentley said the housing market is healthy - for both buyers and sellers - and that he expects it to flourish through the summer. "It's just chugging along very, very nicely for everybody," he said. "The sales volume is good and prices are not going nuts."

Canadian Pacific to sell historic Windsor Station in Montreal

MONTREAL (CP) - Canadian Pacific Railway (TSX:CP) plans to sell Windsor Station in Montreal through a request for proposal process it hopes will gauge market value for the historic property. "This process is undertaken as part of CP's ongoing evaluation of opportunities to monetize the value of its real estate assets to maximize returns to the company and reduce ongoing operating costs," the company said in a release. Up for sale are real estate parcels consisting of the Windsor Station office building and courtyard, the Windsor Tower and an interest in the Bell Centre parking garage.

InterRent REIT Announces Closing of 94 Suite Property Acquisition

This is InterRent's second building in Stratford, bringing its total ownership in this western Ontario city to 218 suites, or 11.3% of multi residential suites in Stratford. Located between London and Kitchener, Ontario, Stratford is a city with a population of 31,000, well known for its annual Shakesperean theater festival and its ideal location on the banks of the Avon River, with Lake Victoria in the center of the city. It has become a bedroom community for both larger population centers, as well as a popular retirement location for many of the area's affluent seniors.