Forgot about that one. It seems like a decent possibility.
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Calgary real estate market
- Thread starter Davidackerman
- Start date
JonnyCanuck
Senior Member
The vast majority of new multi-family projects in process are still purpose built rentals. There is the odd low rise condo project for sale in the suburbs but other than that, the favourable housing market did not create a spike in hi-rise projects. I doubt higher interest rates are going to change much in this segment.
A couple of projects like Graywood's Eau Claire and Minto's Era were sold out to investors (mostly out of town) for the purpose of rental. I heard that both developers were providing guarantees to buyers for the first two years of rental.
Mountain Man
Senior Member
I've heard of a few multi family projects being shelved, banks don't want to approve financing with interest rates rising apparently. Probably not the soundest finances if that's enough to scare the banks off, but still...
darwink
Senior Member
Small developers new to the rental game?
Mountain Man
Senior Member
Not at all.
GoVertical
Senior Member
Don't know where else to post this:
www.westerninvestor.com
Millennium Tower sells in major Calgary office transaction
Deal ranks as the largest office transaction this year to date
www.westerninvestor.com
CalgaryTiger
Senior Member
Who bought the old YMCA right next door?Don't know where else to post this:
Millennium Tower sells in major Calgary office transaction
Deal ranks as the largest office transaction this year to date
MichaelS
Senior Member
I think it was Telsec.
CalgaryTiger
Senior Member
Was wondering if this was related, seems like it isn't.
CalgaryTiger
Senior Member
The Ontario investor has been big factor in some projects getting off the ground and I recall seeing on one thread about a boom in rental properties. But as this article points out, the Ontario investor buying a condo in Calgary to rent, seems to have slowed in recent months.
As winter sets in, there are signs the trend has started to cool and there is debate about whether it's a temporary slowdown that will pick up again in the spring.
At the outset of 2022, Calgary mortgage broker Josh Higgelke was getting "a ton of calls" from investors in Ontario and B.C. Nowadays, he said, that's changed — he still gets plenty of out-of-province inquiries, but most of them are from people who are actually planning to set up new lives in Alberta.
"With the increase in interest rates that we've seen, the market has somewhat softened for the investor," said Higgelke.
Interest rates are a factor for sure, but I'm wondering with the provincial election looming and sovereignty acts being proposed if that's not causing some investor pause too? People actually moving to Alberta might keep the market going, and the shortage of rentals especially as investors buying condos to rent dwindle would seemingly make purpose-built rental appealing to a developer (at least to me as someone very far on the outside of things).
As winter sets in, there are signs the trend has started to cool and there is debate about whether it's a temporary slowdown that will pick up again in the spring.
At the outset of 2022, Calgary mortgage broker Josh Higgelke was getting "a ton of calls" from investors in Ontario and B.C. Nowadays, he said, that's changed — he still gets plenty of out-of-province inquiries, but most of them are from people who are actually planning to set up new lives in Alberta.
"With the increase in interest rates that we've seen, the market has somewhat softened for the investor," said Higgelke.
Interest rates are a factor for sure, but I'm wondering with the provincial election looming and sovereignty acts being proposed if that's not causing some investor pause too? People actually moving to Alberta might keep the market going, and the shortage of rentals especially as investors buying condos to rent dwindle would seemingly make purpose-built rental appealing to a developer (at least to me as someone very far on the outside of things).
CalgaryTiger
Senior Member
I had no idea the average price was so different from Calgary to Edmonton.
Urban Outdoorsman
Active Member
Wow, I'm shocked to see how close Calgary and Halifax are!
I had heard that prices in Halifax went up due to a large influx of international immigration (post covid) combined with a number of people moving back from Ontario due to working remotely, and it caused a supply issue.
UrbanRED
Active Member
It used to be closer (to the tune of $100K difference) but the gap has expanded in recent years - I'm guessing Ontario buyers
Could be related to that. Also, I wonder if those prices are median vs average? Calgary has a higher amount of high end properties and it tends to skew the average a bit.
Would be interesting to see a graph over the last 30-50 years. I'm old enough to remember the days when Edmonton prices were actually higher.