Nouveau Silk Road: From Middle Kingdom to The Great White North
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Jonathan Manthorpe believes there is a direct line linking the explosive real estate bubbles in Toronto and Vancouver and how secure Chinese President Xi Jinping looks on his throne.
The evidence — the vast amount of money being spirited out of China by relatives, friends and cronies of the Red Aristocracy around Xi — suggests he’s set to tumble. Last year about $US1 trillion was spirited out of China by Communist Party leaders and their hangers-on, in defiance of currency regulations.
They clearly do not feel the regime is secure and want their assets hidden away in stable overseas havens like Canada, the United States, Australia or Europe.
Sounds like it’s not “London Bridge is falling down”, its “The Great Wall is tumbling down”?
Firstly, there is a lack of evidence that foreign investors are responsible for soaring housing prices.
Secondly, it has been speculated by some market pundits that a housing bubble doesn’t even exist.
So what?
Motley doesn’t really have the answer … One thing for sure, Vancouver is dragging Seattle’s real estate to become one of the most expensive place to live in U.S … Bad influence, eh?
Meanwhile, those with vested interest in Vancouver’s real business are fight tooth and nails … believe the taxes are going to kill off The Goose That Laid the Golden Eggs – Real Estate
Morrison said the effects could take years to play out given some deals involve the sales of condos still being built. Canada’s westernmost province introduced the tax for foreigners as price gains intensified this year. The cost of a detached home in …
Years of inaction mean only the rich can hope to own a home in Vancouver. … One example: Only 10 years ago, just 11 per cent of Vancouver detached homes were valued at $1 million or more – when the city was already Canada’s most expensive.
However, things seem to be slowing dow? Maybe not, developers in Canada are good at creating supply shortage to shore up prices, don’t they?
Canada’s housing starts fall in July from June: CMHC
The Globe and Mail
“Housing prices might be a bubble in someCanadian cities, but July data show that starts and construction rest on a firmer foundation tied to population growth and demand,” CIBC Capital Markets chief economist Avery Shenfeld said in a research note.
OTTAWA—Statistics Canada is reporting that the value of building permits issued by cities in June was $6.4 billion, down 5.5 per cent from the previous month.
And that’s not a big surprise, in 2014 you saw a surge of building construction and activity and now it’s all pulling back now that we’re in a recession,” he said.
CANBERA (Alliance News) – At 8:15 am ET Tuesday, Canada Mortgage and Housing Corp. released Canada housing startsdata for July at 8:15 am ET Tuesday.
Now, lets forget about affordability – house will never be affordable for a long time to come, whether the Emperor of Middle Kingdom, Xi Jinping tumbles down or not. Let’s just examine the rental situation …
In Canada, a monthly budget of $1,000 can lease a renter anything from a single room in a house with five roommates to a three-bedroom house on a quiet cul-de-sac.
… rising cost of rental units in Canada’slargest cities, along with vacancy rates near zero, mean it’s increasingly difficult for people who rely on rental units to find – and keep – their housing.
Can we conclude it’s getting Smaller, Tighter, More Expensive, Unsatisfactory, and even making renter folks “No Class”?
And “skinny” development like this ain’t going to help …?
Deborah Scott, the architect and developer behind 24 Mercer St., said the “boutique”condo tower is modeled after the narrow lofts of New York’s Soho neighbourhood.
Here is a few shots of Highrise Utopia by Michael Wolf: –
“We’ve created a set of regulations that enables people to use part of their property to achieve an income through short-termrentals,” said Osborne, adding the strategy isn’t likely to address other issues around access to affordable housing. Aaron …
Looks like we are at the cross road into an uncharted territory … Let’s hope Canada will become an real utopia of north america, and another Slumdog Millionaire of the third world.
By Corruption Victim of City of Toronto It was comforting to hear the assuring statement by Toronto Fire Chief Matthew Pegg: – Officials say London inferno won’t happen in Toronto : Strict building codes and inspections should prevent similar infernos “Here in Ontario we are fortunate to have the comprehensive fire protection and fire safety measures that are contained in the building code ,” He further explains residential building in the province must be constructed with non-combustible construction (in accordance with the Ontario Building Code ) ie. be built out of materials that don’t burn. Of particular interest here is the fact that the Fire Chief himself confirmed Fire Code refers to Building Code to determine building safety . In another word, building that contravened the building Code in fire safety also violated the Fire Code (under the Fire Protection and Prevention Act, 1997). Unfortunately, an inquiry with Toronto Fire Prevention revealed the responsible...
Story from http://www.theglobeandmail.com/ … Aggressive development: Inside the building and selling of a Toronto condo tower A man who makes a living helping the country’s largest bank avoid risks is preparing to double down on a market that many people believe is on the verge of a nasty fall. Babak Habibzadeh, a 29-year-old risk manager with Royal Bank of Canada, lives with his parents and bought his first condo two years ago. He rents it out and has been delighted with the returns to date. So today he’s buying another – a one-bedroom-plus-den, 601-square-foot unit on the 18th floor of a yet-to-be constructed building in Toronto called Core Condos that is scheduled to open in 2017. He’s not yet sure if he will rent it out or live in it, but says it will be a sound investment either way. “Are you excited?” the saleswoman asks him as he plows through a stack of paper in the sales office, outlining the $360,000-plus deal. “In three years I will be,” he says. Toronto’s condo boom ...
A rundown old house with a hodge podge of apartments in Roncesvalles Village drew crowds last week when it was listed with an asking price of $769,000. The property at 52 Harvard Ave. drew five competing bids and sold for $913,000. The owner purchased the house in 1988 for $135,000, he says. “It’s gone from pandemonium to just a heavy frenzy,” he says. Read more http://www.theglobeandmail.com/ Don’t not wish to join the Bull Run ? Sorry, you ain’t got no choice, because it takes … $430,000 to live in a former glue factory in the Junction Triangle Address: 371 Wallace Avenue , Suite 22 Neighbourhood: Dovercourt-Wallace-Emerson-Junction Price: $434,900 The Place: A one-bedroom unit in Wallace Station Hard Lofts, a former glue factory that takes its name from a now-defunct railway station.
Mortgage insurer CMHC primes market for announcement Canada Mortgage and Housing Corp., the Crown corporation that Finance Minister Jim Flaherty has been seeking to rein in, says it will be making an announcement later this week. Image Source The mortgage insurer, which appointed former investment banker Evan Siddall as its new chief executive officer at the start of the year, would not comment on the substance of the announcement. The Globe and Mail reported in December that there has been pressure on CMHC to raise its premiums, a move that could add to the cost of a home for some buyers. CMHC has not raised its premiums since the late 1990s, and actually lowered them between 2003 and 2005. Mortgage insurance is mandatory in Canada for buyers whose down payment is less than 20 per cent. The insurance covers the lender, or bank, in case the homeowner defaults. While premiums are technically paid by the lenders, the cost is passed along to borrowers. Premiums vary depending on the size ...
Housing Prices in Real Terms: Canada vs the G7. Canada leads all. Overheated housing market will hold Canada back, report says Once a growth leader among big industrialized nations, Canada’s reign at or near the top may be coming to an end, says a new forecast from Capital Economics. The projection, issued Tuesday, calls for the economy to advance by 1.5 per cent, followed by an even softer 1.0 per cent in 2014, as the country’s over-built housing market moves from soft to crash landing. That would likely put Canada behind the U.S., Japan and possibly Germany — among the G7 countries — in terms of growth in at least one of the years. Capital Economics analyst David Madani, who wrote the report says, given the under-performance, he expects the Bank of Canada will keep interest rates at current super-low levels until late 2015. The new outlook runs directly contrary to how the Bank of Canada — and many private sector bank economists — view the economy and housing unfolding. Wh...
Condo developers start 2014 with record number of launches … And more are planned, with new project launches scheduled unusually late, into May, as builders see a surge of pent-up demand after the downturn of the last two years, especially for condos close to the Toronto core. Developers are so optimistic that confidence has returned to the condo market, they’ve launched sales of a record number of new units — more than 2,700 — in January and February alone. Those 2,721 new units are in eight projects, according to figures from research firm RealNet Canada, which will release March launch numbers later this month. That exceeds the 2,394 units in nine projects launched in January and February of 2011, the record year for condo sales. The total is also up significantly from the 1,261 unit sales launched in the first two months of 2012, and the 1,873 units that went to market in the same period of 2013. That’s when fears of a condo crash led to a dramatic slump in sales and flagging ...
To be exact, In Toronto’s housing market, ‘$2-million is the new $1-million’ The strength of the $2-million-plus market comes as Toronto home prices continue to soar. TREB said Wednesday the average sale price of a home across the Greater Toronto Area reached $585,204 in May, an 8.5% increase from a year ago. Image Source The strength of the $2-million-plus market comes as Toronto home prices continue to soar. TREB said Wednesday the average sale price of a home across the Greater Toronto Area reached $585,204 in May, an 8.5% increase from a year ago. Torontonians who can barely wrap their minds around a housing market where $1-million is the average price for a detached home might want to take notice of a new fast-approaching benchmark. Sotheby’s offers private jet, helicopter service to woo luxury homebuyers to Calgary Bank of CanadaProspective clients will be flown to Calgary by private jet from practically anywhere in the world and then taken on helicopter tour of multi-million-dol...
Bubble? What bubble? Toronto condo sales booming once again The overall resale market was blazingly hot in the opening months of 2014. In the 416 area code, the average price for a detached house in April hit $965,670 for a 13.2-per-cent jump from April, 2013. The average semi jumped an even more eye-popping 18 per cent in the same period to $702,332 from April of 2013. The average price for a resale condo unit in April was $384,758, which was a slim 1.8-per-cent increase from April of 2013. Anecdotally, we’ve been hearing how strongly sales of condo units in Toronto bounced back in the first quarter of 2014. Investors swarmed some condo sales centres as soon as new projects were launched. In the resale market, some sellers were choosing among competing buyers for the first time in a long while. Data this week from Urbanation Inc. puts some numbers to the rebound: The market research firm says sales of new condo units soared 88 per cent to 5,140 in the first quarter, compared with the ...
Vancouver, Vancouver, Vancouver. I always wonder why do foreign investors, particularly those from China are so obsessed with this city … Fengshui? Image Source Foreign investment has impact on Vancouver housing market, say researchers
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