Sotheby’s: $1 million-plus market to suffer
Higher value properties in the Calgary area
are expected to suffer from economic uncertainty and lower confidence, according to a new report by Sotheby’s. Figures from the Calgary Real Estate Board showed that the number of luxury homes sold in January was 24, down from the 42 sold a year earlier. February’s figures revealed an even bigger drop: 27 this year down from 66 a year earlier. The situation could change, though, if the current economic conditions continue, with wealthier buyers picking up property at a discount. Ross McCredie of Sotheby’s told the Calgary Herald
that many buyers of luxury homes will be patient before making their move: “They’re typically buyers who are 55-plus in age. They already have their money. They’re not panicked. They’re comparing.” The realty firm’s report concludes that the high-end property market will “slacken” but only temporarily. Read the full story.
Household debt accelerating, says RBC
A report from RBC says that household debt grew by 4.6 per cent in January, the fastest growth in two years. Total debt is now $1.82 trillion with $80 billion added in the last year, especially in the last three months. New residential mortgages make up a substantial part of the rise with 5.4 per cent more home loan debt in January this year compared to a year earlier. Mortgages now total $1.3 trillion. Non-bank lenders accounted for a fifth of mortgages with 6.3 per cent outstanding; 4.3 per cent of bank-loaned mortgages were outstanding. Other types of consumer debt declined.
Toronto still important for world’s wealthy
Knight Frank’s annual wealth report ranks the 40 cities considered the most important to some of the richest people in the world. The league table looks at the quality of life for those with net assets above U$30 million. London, New York and Hong Kong are the top three, with Asia and Europe dominating the top 10, but at number 12 Toronto
is not only the only Canadian city to feature but it outranks most of North America, including San Francisco, Los Angeles and Boston. Read the full list.
Property owners urged to take up Chinese capital
Chinese investors are still very keen to put their money into property in Canada and owners of commercial property should act now to access the surge in available capital. That’s according to Colliers International, which says there is a “rising wave” of Chinese investment due to lighter restrictions on investing overseas from China’s regulators and a lack of properties for investors to buy locally. “An unprecedented amount of capital has flowed out of China just in the last four years,” says Colliers’ Adam Kosoy who expects the trend to continue. The firm’s market analyst Sarah Goulding says that there is a shift in the shopping list of Chinese investors from land development to “trophy investment offerings such as Class A office projects. Opportunities in major cities and high-profile locations are also a major lure.” Read the full story.
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