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Provincial budget fails to protect Ontario homeowners against massive tax hikes
TORONTO - The Coalition After Property Tax Reform, (CAPTR), says the property assessment changes introduced in the Ontario budget amount to tinkering and will not protect homeowners against massive tax hikes, which will now be phased in over four years.
"The result will be that soaring assessments will make taxes more
predictable within each four year period but the problem of volatility caused
by a market driven system remains," says CAPTR spokesperson Bob Topp.
"The real problem with Ontario's current value-based property tax regime
is that it shifts the tax burden from one neighbourhood to another and one
property to another, reflecting pockets of hot market activity made worse by a
crude assessment process," adds Topp.
"If the four year cycle and four year phase-in proposed today in the
provincial budget had been in effect over the past decade it would have done
nothing to reduce volatility and the unfair shifting of tax burdens," he says.
"If Finance Minister Sorbara had combined his four-year cycle with our
call for a 5 per cent cap on annual assessment increases, he would have
provided real property tax stability for Ontario's homeowners," says Topp.
The Coalition After Property Tax Reform (CAPTR) is a province-wide
coalition of ratepayer and seniors organizations representing over one million
Ontarians. It was formed in 2006 to lobby for an equitable residential
property tax regime in Ontario.
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Federal Budget Misses Investment Opportunity
No firm action on capital gains
OTTAWA - The federal government has failed to provide an opportunity for Canadians to increase their investments in real property.
This opportunity would have come in a proposal from The Canadian Real
Estate Association (CREA) to allow the deferral of capital gains tax and
recaptured capital cost allowance when an investment property is sold, and the
proceeds of the sale are invested in another investment property within one
year.
The Association, on behalf of more than 88,000 REALTORS(R) in Canada, has
been calling on the federal government to make such changes to the capital
gains tax for several years now. CREA's proposal would provide several
economic benefits, including a boost in Canada's productivity, expansion of
rental housing, and encouragement of urban regeneration.
"Small investors are holding onto their real property investments because
of the tax consequences associated with selling and reinvesting, and this is
unduly influencing typical market activity," noted CREA Chief Executive
Officer Pierre Beauchamp. "Despite our disappointment, CREA remains committed
to working with the federal government to develop a policy that will encourage
investment in real property."
Canadian REALTORS(R) were also disappointed to learn that the federal
government did not revise the current Home Buyers' Plan to include a market
adjustment for the maximum RRSP withdrawal limit - a move that would have been
beneficial to first-time homebuyers.
"The maximum loan limit under the Home Buyers' Plan has been losing
ground as a percentage of rising average resale home prices for more than a
decade," noted Beauchamp. "Plan users are being forced to finance bigger
mortgages, causing their debt burden to rise even as interest rates remain
low."
The $20,000 maximum loan limit for a home downpayment has not been
adjusted since the plan was established in 1992, which has had a negative
impact on its effectiveness.
The lack of inflation adjustment is an obvious oversight in the design of
the plan. Canadians REALTORS(R) have been calling on the federal government to
raise the maximum loan limit to $25,000 to account for inflationary gains over
the past 15 years. REALTORS(R) would also like to see the loan limits adjusted
every five years to account for inflation.
"Though we are disappointed that these much needed changes are not
reflected in the 2007 Federal Budget, we hope that the federal government will
make improvements to the plan - and the affordability of Canadian housing - a
priority in the immediate future," added Beauchamp.
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Mortgage and Housing Market Going Strong North of the Border announces MortgageBrokers.com
Company predicts Canadian Refinance boom for 2007-2009
RICHMOND HILL - As the U.S. housing market falters, with the demise of Subprime lenders such as Accredited home lenders and New Century Mortgage the latest figures show all aspects of the Canadian market going strong with experts predicting a refinance boom.
Alex Haditaghi, CEO of MortgageBrokers.com says the housing market was
"quick out of the gate this year," driven by many aspects including moderate
interest rates, high employment, continued strong immigration to Canada and
strong consumer confidence. We expect a very healthy 2007 for both the housing
and Mortgage market.
Haditaghi's enthusiasm echoes reports released by Remax, CIMBL, and Bank
Of Nova Scotia. Adrienne Warren an economist for Bank of Nova Scotia called
the Canadian market "the rabbit that just keeps on going and going." Although
the market is likely to cool some by the end of the year, home resales set a
record in January and housing starts hit a 29-month high with the assistance
of mild weather, Warren said.
Prices remain great as well, Warren noted. "The trend in national new-
and existing-home prices, while off the highs of last spring, is still
averaging about 10 per cent year-over-year." The Canadian market is in a very
different situation than the United States.
The U.S. is currently burdened with higher default rates as a direct
effect of the amount of high-risk subprime loans. In Canada subprime loans
make up 5 percent of outstanding mortgages compared to the 20 percent in the
United States. At the present time Canadian Default rate is around 0.5%
The Canadian market has remained robust, with the highest number of home
sales in its history between 2001 and the present. The housing market has
become stronger and more insulated as immigrants continue to flood into the
country, ultimately buying homes and local economies continue to diversify.
Undoubtedly, the strong Canadian housing market will create a resurgence
of refinancing as well. With approximately 95% of Canadian mortgage terms at
5 years or less, there is sure to be a huge refinance opportunity created in
Canada. As real estate continues to be a solid investment more borrowers will
look at refinancing to get into better terms or to utilize their equity.
Additionally, up and coming companies such as MortgageBrokers.com with
unique business models that are built for slower times could benefit from this
turmoil in the market, Mr. Haditaghi said. Such opportunities could range from
buying portfolios of assets, intellectual property rights, and picking up
talent, he said.
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Kitchener desperately seeking affordable apartments
TORONTO - There are not enough apartments to rent in Kitchener and those that are available are unaffordable for the average worker.
These are the findings of "Where's Home? 2006: A Picture of Housing Need
in Ontario." The report is produced by the Ontario Non-Profit Housing
Association (ONPHA) and the Cooperative Housing Federation of Canada (CHF).
"It's a volatile and disturbing situation," says ONPHA President Deborah
Schlichter. "The people who drive this province's economy can't afford to live
here now, even if they can find an apartment. And we have not built for the
future."
The report shows that between 1995 and 2005, there has been a net loss of
13,000 rental housing units in Ontario. This is in part due to the demolition
of rental housing, as well as the conversion of many units to condominiums. It
also reflects the lack of rental housing.
"Housing policy in Ontario has been woefully short-sighted. It has failed
to prepare us for the lean years during the fat ones," says Joseph Zebrowski,
President of the Ontario Council, Cooperative Housing Federation of Canada.
"During the powerful economic surge of the past few years, it has failed to
develop sufficient rental housing for our current needs, let alone for future
needs."
The report showed that vacancy rates for private apartments dropped in
64% of 22 markets surveyed across the province. In Kitchener, the rate dropped
to 3.3% in 2005 from 3.5% in 2004.
The report was based on data from the Canadian Mortgage and Housing
Federation's Rental Market Survey, conducted in October, 2005. Overall
Ontario's vacancy rate fell from 4.1% in 2004 to 3.8% in 2005. Recently
released data shows it fell to 3.4% in 2006.
The survey also highlighted the high cost of renting in four sample
markets (Toronto, Ottawa, Hamilton and Sudbury). Based on the average income
of nine different job types (elementary teachers, carpenters, secretaries,
labourers, data entry clerks, retails salespeople, cooks, food servers and
cashiers) the report determined that most workers who are employed in the
service industry or unskilled manufacturing cannot afford the average rent in
their community.
For example, a retail salesperson in Hamilton earned approximately
$19,700 in 2005 and could therefore afford to pay rent of $493 per month.
However, the average one-bedroom apartment in Hamilton rents for $646, which
means a single sales clerk would spend 40% of his or her income on rent.
"And social housing can't fill this gap. These people can't wait for five
to ten years," says Schlichter, noting that there are nearly a quarter of a
million people (122,426 households) on the province's waiting list.
In Toronto, registrants must wait for 8.5 years for a home; in Peel
Region, it is a seven to ten year wait. The vast majority (80%) of households
who apply for social housing have annual household incomes of less than
$20,000.
The report also shows that Canada continues to lag behind other developed
nations in terms of its percentage of social housing. An estimated 5% of
Canada's housing stock is social or non-market rental housing owned and
operated by a public, non-profit or cooperative organization. Only two nations
have a smaller proportion of social housing stock: New Zealand at 4.5% and the
United States at 2%. Netherlands has the highest proportion at 35% followed by
Sweden and the United Kingdom at 22% each.
"ONPHA and CHF Canada members house a wide spectrum of people who
contribute enormously to this province," says Zebrowski. "We cannot continue
to neglect the housing needs of our society."
"Affordable housing builds healthy communities," adds Schlichter.
"Rectifying this rental housing shortage is the foundation for a healthy
future."
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Canadian Construction Association Presents Environmental Achievement Award to Maple Reinders Constructors Ltd.
MISSISSAUGA - The Canadian Construction Association (CCA) on March 9th presented the CCA Environmental Achievement Award to Maple Reinders Constructors Ltd. of Mississauga, Ontario for their ground-breaking Hamilton Centralized Compost Facility project. The award was presented as part of the National awards breakfast held during CCA's 89th Annual conference held at the Westin Rio Mar in Puerto Rico.
The Environmental Achievement Award is presented to a member firm who has
demonstrated excellence in pursuing environmental actions or innovations
within the Canadian construction industry. Given the heightened importance
that Canadians have put on environmental issues, this award is an example of
the increased environmental stewardship that the industry is pursuing.
"The Canadian Construction Association is pleased to recognize Maple
Reinders with the highest honour it can bestow upon a company for
environmental leadership," stated Alfonso Argento, outgoing Chairman of the
Canadian Construction Association. "By winning this award twice in the past
three years, Maple Reinders has set itself apart as a leader within the
construction industry for its commitment to preserving and enhancing the
natural environment."
The $30.7 million Central Composting Facility (CCF), completed by Maple
Reinders in June 2006, is capable of processing 60,000 tonnes of organic waste
per year - about one-third of Hamilton's residential waste stream. Since
start-up in May 2006, the Hamilton CCF has become a model operation, visited
by representatives of municipalities from North America, Europe, Asia and
Africa; all seeking comparable solutions for their waste management
programmes. Built on reclaimed industrial land and using a closed system that
recycles water and contains odours through a 12,000 m(3) biofilter, this
facility is a model of environmental achievement.
"Recognizing that landfill space is limited, Hamilton City Council
adopted a Solid Waste Management Master Plan to achieve an aggressive goal of
65% waste diversion from landfill by the end of 2008," says Craig Murdoch,
Manager of Waste Disposal for the City of Hamilton's Public Works Department.
The construction and operation of the CCF is a key component of the Master
Plan and is recognized as integral to the municipality's success in meeting
its waste diversion target.
"We were pleased to be selected for this leading-edge project," notes
John Haanstra, Vice President (Environmental) of Maple Reinders. "Our
understanding that we were not constructing a simple building, but a living
machine, permeated every aspect of the project."
This is the second time in three years that Maple's work as leaders in
environmental design is being recognized on a national level. In 2005, Maple
Reinders was acclaimed with the same award for its wastewater treatment
project in Jasper, Alberta. The prestigious award identifies, encourages and
promotes technologies, products, designs and construction practices, which
serve to protect or improve the environment.
Photos enclosed.
Photo credits: Jon Evans, Banko Photographic Ltd.
<<
BACKGROUNDER
>>
Maple Reinders Constructors Ltd. Leads the Way in Environmental Design
With the critical state of the environment as one of the hottest global
issues, sustainable waste management has taken a front seat on many municipal
agendas. In 2003, the Province of Ontario declared a goal for municipalities
to divert 60% of their waste from landfills by 2010. Government agencies
across Canada are now looking to the private sector to provide viable
long-term waste solutions.
In North America, the typical method of waste disposal has been sanitary
landfills where the waste is spread, compacted, and covered with soil each
day. When a particular cell is full, it is sealed. Anaerobic conditions are
caused and the organic materials in the waste are broken down by bacteria into
carbon dioxide and methane. The emissions of methane from the landfill present
both a safety hazard near the site and a substantial contribution to the
greenhouse effect.
Having been involved in the construction of wastewater treatment
facilities for 40 years, Maple Reinders saw a need arising, particularly in
Western Canada, for sustainable treatment of sewage sludge. After some
investigation, the firm identified composting as the most viable option. The
experience gained with sludge composting was subsequently applied to the
treatment of organic solid waste. The firm began exploring partnerships with
compost specialists from the Netherlands, a country renowned for its
pioneering efforts in environmental strategies.
Composting operations often generate high levels of offensive odours.
Most municipalities compost in exposed open windrows comprised of organic
materials that are regularly turned over. This method not only consumes large
areas of land, but also creates huge potential for odour problems for
neighboring residents. Maple Reinders' unique compost process is fully
enclosed in a series of sealed concrete tunnels; mitigating issues such as
odour, corrosion and year-round operational capability.
Supported by its Dutch partners, Maple Reinders first introduced a
state-of-the-art in-vessel compost process to Canada for municipal wastewater
biosolids composting. Later, these small-scale successes paved the way for
much larger residential source-separated organics processing projects,
including the City of Hamilton Central Composting Facility, Region of Peel
Compost Facility and Cape Breton Regional Municipality Compost Facility.
Organics composting is a major part of Hamilton's Master Plan for waste
diversion. The in-vessel system allows the operator to control all parameters
of the compost cycle: heat, moisture and oxygen within fully enclosed concrete
tunnels. Due to this high level of control, the organic waste breaks down much
quicker than it would on its own or in a landfill. This facility is expected
to process approximately one third of Hamilton's residential waste. The
Hamilton Central Composting Facility is capable of producing Canadian Council
of Ministers of the Environment Class "A" compost, ready for market, in about
two months.
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Strong housing market continues to fuel demand for flexible mortgage options
GMAC Residential Funding of Canada and Mortgage Intelligence answer
demand with new mortgage features
TORONTO - National home sales increased in almost every province during the month of January, fuelling continued demand for flexible mortgage options that make buying a home easier for Canadians. In an ongoing effort to meet the needs of today's mortgage consumer Mortgage Intelligence Inc., a GMAC Company, is now offering Canadians the option of an extended 40-year amortization with zero down payment on its i secure(R) mortgage.
According to a recent survey conducted by Canada Mortgage and Housing
Corporation (CMHC), 40 per cent of Canadian mortgage consumers are willing to
make higher mortgage payments if it means they can buy a home sooner with a
smaller down payment. Thirty per cent of Canadian mortgage consumers would
also take longer to pay off their mortgage if it would improve their cash
flow.
"Home ownership is important to Canadians, but so is having the freedom
to meet other financial demands," says John Schipper, Senior Vice President,
GMAC Residential Funding. "Thirty per cent of all our i secure(R) approvals
have had amortizations greater than the traditional 25 years since we
introduced this feature to our mortgage product. By providing Canadians with
up to 100 per cent of the value of their home, they now have the ability to
own a home sooner, but keep their monthly payment lower by choosing a longer
amortization."
The CMHC survey also shows that 75 per cent of Canadian mortgage
consumers want to pay off their mortgage as quickly as possible, and 50 per
cent plan to use any extra money to pay down their mortgage principal.
"Canadians increasingly see the value of entering the housing market from
a financial perspective and want to take advantage of it by getting into the
market sooner," continues Schipper. "Home ownership is a great way to build
equity and Canadians, particularly first-time buyers, make the most of their
investment by using their free cash flow and any extra money to pay of their
mortgage quickly, which is sound financial planning for any stage of life."
Underwritten by GMAC Residential Funding of Canada, i secure(R) gives
homebuyers the ability to lock into their mortgage at a great rate and have
peace of mind knowing their monthly payments won't fluctuate. The introduction
of 100 per cent financing now provides homebuyers with the opportunity to get
into the market sooner, while the option of a 30, 35, and 40-year amortization
helps reduce their monthly payment and have the flexibility to meet other
financial demands.
Whether shopping for their first mortgage, renewing an existing mortgage
or refinancing, Canadians are increasingly exploring their options in today's
mortgage market. Seventy per cent of mortgage consumers are checking
competitive rates, getting information from other lenders or shopping for
options and 27 per cent are turning to a mortgage broker for valuable advice
on what mortgage is best for them, according to the CMHC survey.
"Today's mortgage consumers are extremely savvy shoppers who want the
best product for their needs and sound advice as to what option is best for
their financial situation," says Stan Falkowski President, Mortgage
Intelligence Inc. "We are seeing continued growth in our industry as more and
more Canadians turn to mortgage brokers for their ability to provide the
widest variety of options and solid financial counsel."
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MULTIPLE CONSTRUCTION PULLS KITCHENERS FEBRUARY STARTS HIGHER
TORONTO - The Canada Mortgage and Housing Corporation (CMHC) released Kitchener’s preliminary housing starts data on March 7. Construction began on a total of 155 homes in the Kitchener Census Metropolitan Area (CMA), an increase of five per cent from the 148 units started in the same month last year. Single-detached home starts continued to trend lower. February single-detached starts were at their lowest level since February 1996.
Only 55 single-detached foundations were poured in February, a drop of 49 per cent from the same month last year and the tenth consecutive monthly year-over-year decline. Multiple family home starts (which include semi-detached homes, townhouses and apartments), at 100 units, were up from the 41 units which were started in February 2006. The start of three small apartment buildings in Kitchener and Waterloo propelled multiple starts higher. For the first two months of 2007, housing starts were 43 per cent higher due to the increase in apartment construction.
“The higher carrying costs of homeownership have renewed interest in rental apartment construction”, said Erica McLerie CMHC Market Analyst for the Kitchener CMA. “In addition, interest is shifting from the relatively expensive new single-detached homes to lower-priced options in the new and resale home markets.”
ONTARIO HOME STARTS DROP BACK TO EARTH IN FEBRUARY
After posting above trend activity in January, Ontario preliminary urban* home starts dropped below trend in the latest month. The Seasonally Adjusted Annual Rate (SAAR) of urban starts declined to 51,500 units, down from 76,700 units in January. Both single and multiple family home starts were responsible for the drop in residential construction activity. London, Windsor and the Toronto areas pulled Ontario numbers lower in February.
“New home construction across the province has traditionally been volatile early in the calendar year and February was no exception. Despite a moderation in new home activity in the latest month, Ontario home starts are in line with current expectations thanks to a still active resale market, low interest rates and healthy consumer confidence,” said Ted Tsiakopoulos, CMHC`s Ontario regional economist.
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Canadian Housing starts move down in February
OTTAWA - The seasonally adjusted annual rate(1) of
housing starts was 196,200 units in February, down from 248,500 units in
January, according to Canada Mortgage and Housing Corporation (CMHC).
"Following the unusually strong surge in construction activity in
January, which was partly attributable to the unseasonably warm weather,
housing starts in February returned to levels more in line with expectations,"
said Bob Dugan, Chief Economist at CMHC's Market Analysis Centre. "Housing
starts are likely to increase in the coming months and are forecasted to reach
209,500 units in 2007."
February's seasonally adjusted annual rate of urban starts was 163,200
units, down 24.3 per cent from January. Urban multiples fell 33.0 per cent to
82,800 units in February, while singles decreased 12.6 per cent to 80,400
units.
Urban starts in February dropped across all regions. Urban multiple
starts declined in all regions except in the Atlantic where they rose 15.6 per
cent. Urban single starts were down everywhere except in British Columbia
where they remained unchanged from January.
Rural starts were estimated at a seasonally adjusted annual rate of
33,000 units in February.
Actual starts in both rural and urban areas were down an estimated
5.2 per cent in the first two months of 2007 compared to the same period in
2006, while actual starts in urban areas only were down an estimated 6.7 per
cent. Actual single starts in urban areas were 20.3 per cent lower than they
were a year earlier, while actual urban multiple starts were up 6.2 per cent.
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The value of building permits surged to their highest level ever in January, thanks to huge gains in the value of residential and non-residential permits.
It was the third time in four months that the $6-billion mark was surpassed.
Builders took out a record $6.3 billion in building permits in January. January's level was 11.3% higher than December 2006.
These results point to a busy spring on building sites as building permits are a leading indicator for construction activity.
The value of non-residential permits increased 19.3% to a record $2.6 billion in January, the third monthly gain in four months. January's gain was due largely to surges in the values of both industrial and institutional permits in Ontario.
In the residential sector, the value of building permits rose 6.3% to $3.7 billion after two monthly declines. This was the third highest monthly level on record. Intentions increased in both single- and multi-family components.
Provincially, the largest gain (in dollars) occurred in Ontario, where municipalities approved $2.6 billion worth of permits in January, thanks to new record highs in both the residential and non-residential sectors.
On the other hand, the value of building permits fell in six provinces. The biggest decline in terms of dollars occurred in Alberta, where a large drop in commercial and industrial permits more than offset a gain in the housing sector.
Residential: Record-high value of single-family permits
Municipalities set a record for the value of building permits for single-family units for a second consecutive month. They issued $2.4 billion in single-family permits, up 2.8% from December. A major contributing factor was higher construction costs.
Demand remained high for single-family dwellings, as municipalities authorized 10,220 new units, a slight 0.6% decline from December. This level was 3.0% higher than the monthly average of 9,920 units set in 2006.
The demand for new-single family units has been on an upward trend since the middle of 2006.
Following two monthly declines, the value of multi-family permits rebounded, rising 13.8% in January to $1.3 billion. The increase was powered by gains in the three types of multi-family dwellings (apartments/condominiums, semi-detached and row houses).
In January alone, permits for 10,005 new multi-family units were issued, up 27.4% from December. A vast majority of the January permits were for new apartments/condominiums.
Among the provinces, six showed increases in their value of housing permits in January. The largest gains (in dollars) were recorded in British Columbia (+16.7% to $719 million) and in Alberta (+15.1% to $758 million). The gains in both provinces were due to jumps in the values of single- and multi-family permits.
The housing sector continued to be positively affected by the very dynamic economy in Western Canada. Other contributing factors were advantageous mortgage rates, the continued strength in full-time employment and in personal disposable income as well as the high level of immigration.
Non-residential: Strong rebound in institutional and industrial components
Strong growth in the values of both institutional and industrial permits was the main factor behind the new monthly record in the non-residential sector.
Permits in the institutional sector rebounded a spectacular 69.3% to $620 million, after falling 51.1% in December. It was a fourth monthly increase over the last six months, and was largely the result of higher construction intentions for medical and educational buildings.
Among provinces, six showed gains in the institutional sector. The largest gain (in dollars) was recorded in Ontario (+115.0% to $337 million).
The value of institutional permits has been on an upward trend since February 2006.
In the industrial sector, the value of permits surged 45.9% to $650 million. The big gain, which followed an 11.1% decline in December, was the result of large increases in the manufacturing and utility building categories in Ontario. Alberta showed the biggest drop (in dollars) on the heels of a 125.6% gain in December.
The value of industrial permits has been on an upward trend since January 2006.
Commercial sector permits fell 2.6% from December to $1.3 billion. Behind this decline was the lower demand for permits associated with warehouses and recreation buildings. Despite the retreat, the value of commercial building permits in January remained 12.0% higher than the average monthly level in 2006.
Provincially, the biggest gain (in dollars) in the non-residential sector occurred in Ontario, where all three components (commercial, industrial and institutional) registered huge gains. In contrast, the largest decline (in dollars) occurred in Alberta, the result of important drops in the industrial and commercial components.
Several economic factors were consistent with the strength in the non-residential sector, including growth in consumer spending and declining vacancy rates for industrial and commercial buildings. In addition, corporate operating profits hit a record high in 2006.
Metropolitan areas: Strong growth in Toronto and Vancouver
Among the 34 census metropolitan areas, 16 showed higher value of permits compared with December 2006. Toronto and Vancouver had the strongest increases (in dollars), the result of strength in both the residential and non-residential sectors. In Toronto, the value of non-residential permits hit its highest value since March 2005.
The value of building permits hit a new high in January in Greater Sudbury / Grand Sudbury.
In contrast, the largest decline occurred in Halifax where decreases in both the residential and non-residential sectors led the value of permits to its lowest level since February 2005.
| Value of building permits, by census metropolitan area1 |
| |
December 2006r |
January 2007p |
December 2006 to January 2007 |
January 2006 |
January 2006 to January 2007 |
| |
Seasonally adjusted |
| |
$ millions |
% change |
$ millions |
% change |
| St. John's |
27.4 |
22.8 |
-16.8 |
25.5 |
-10.4 |
| Halifax |
98.0 |
31.1 |
-68.3 |
34.7 |
-10.3 |
| Moncton |
19.7 |
11.8 |
-40.0 |
11.7 |
0.8 |
| Saint John |
10.6 |
21.7 |
104.6 |
17.2 |
26.2 |
| Saguenay |
3.1 |
4.5 |
46.4 |
3.9 |
16.1 |
| Québec |
140.9 |
95.6 |
-32.1 |
49.8 |
92.0 |
| Sherbrooke |
12.2 |
17.0 |
39.9 |
13.6 |
25.2 |
| Trois-Rivières |
49.1 |
17.5 |
-64.5 |
17.8 |
-2.2 |
| Montréal |
502.8 |
467.0 |
-7.1 |
434.4 |
7.5 |
| Ottawa–Gatineau, Ontario/Quebec |
125.5 |
228.8 |
82.3 |
156.8 |
45.8 |
| Ottawa–Gatineau (Que. part) |
34.2 |
43.0 |
25.8 |
53.7 |
-19.8 |
| Ottawa–Gatineau (Ont. part) |
91.2 |
185.7 |
103.6 |
103.2 |
80.0 |
| Kingston |
55.9 |
10.6 |
-81.1 |
8.0 |
33.0 |
| Peterborough |
6.1 |
2.1 |
-65.4 |
15.2 |
-86.1 |
| Oshawa |
28.7 |
100.2 |
249.0 |
62.9 |
59.1 |
| Toronto |
1,032.1 |
1,249.5 |
21.1 |
814.0 |
53.5 |
| Hamilton |
62.8 |
84.7 |
34.9 |
94.6 |
-10.5 |
| St. Catharines–Niagara |
29.1 |
20.1 |
-30.8 |
30.3 |
-33.7 |
| Kitchener |
54.4 |
41.4 |
-23.8 |
83.2 |
-50.2 |
| Brantford |
21.9 |
9.1 |
-58.3 |
14.1 |
-35.3 |
| Guelph |
19.4 |
12.8 |
-34.3 |
24.5 |
-47.9 |
| London |
114.9 |
72.5 |
-37.0 |
95.4 |
-24.0 |
| Windsor |
12.9 |
20.3 |
58.3 |
93.4 |
-78.2 |
| Barrie |
24.3 |
15.3 |
-37.0 |
24.7 |
-37.9 |
| Greater Sudbury / Grand Sudbury |
14.6 |
110.2 |
655.2 |
4.7 |
2,240.9 |
| Thunder Bay |
15.0 |
10.2 |
-31.5 |
7.1 |
45.3 |
| Winnipeg |
79.7 |
66.3 |
-16.8 |
79.3 |
-16.4 |
| Regina |
34.8 |
35.3 |
1.3 |
25.7 |
37.4 |
| Saskatoon |
30.7 |
47.2 |
53.9 |
39.0 |
21.2 |
| Calgary |
474.5 |
435.5 |
-8.2 |
287.4 |
51.6 |
| Edmonton |
298.3 |
349.4 |
17.1 |
235.5 |
48.4 |
| Kelowna |
45.8 |
34.3 |
-25.2 |
25.1 |
36.5 |
| Abbotsford |
12.2 |
48.9 |
299.9 |
26.0 |
87.9 |
| Vancouver |
461.3 |
653.7 |
41.7 |
385.7 |
69.5 |
| Victoria |
41.1 |
83.0 |
102.2 |
49.2 |
68.8 |
| r | revised |
| p | preliminary |
| 1. | census subdivisions that comprise the census metropolitan areas. |
| Note: | Data may not add to totals as a result of rounding. |
|
| Value of building permits, by province and territory |
| |
December 2006r |
January 2007p |
December 2006 to January 2007 |
January 2006 |
January 2006 to January 2007 |
| |
Seasonally adjusted |
| |
$ millions |
% change |
$ millions |
% change |
| Canada |
5,672.7 |
6,313.4 |
11.3 |
4,634.0 |
36.2 |
| Residential |
3,478.2 |
3,696.3 |
6.3 |
3,140.2 |
17.7 |
| Non-residential |
2,194.5 |
2,617.1 |
19.3 |
1,493.8 |
75.2 |
| Newfoundland and Labrador |
37.6 |
42.5 |
13.1 |
34.6 |
23.0 |
| Residential |
31.1 |
28.0 |
-9.9 |
30.2 |
-7.2 |
| Non-residential |
6.5 |
14.5 |
122.5 |
4.4 |
230.6 |
| Prince Edward Island |
13.3 |
12.5 |
-5.6 |
13.0 |
-3.2 |
| Residential |
10.1 |
9.5 |
-6.0 |
8.5 |
12.1 |
| Non-residential |
3.2 |
3.0 |
-4.2 |
4.5 |
-32.4 |
| Nova Scotia |
140.2 |
80.4 |
-42.7 |
93.0 |
-13.5 |
| Residential |
87.0 |
59.5 |
-31.6 |
73.9 |
-19.5 |
| Non-residential |
53.2 |
20.9 |
-60.7 |
19.0 |
9.7 |
| New Brunswick |
67.3 |
61.6 |
-8.5 |
97.2 |
-36.6 |
| Residential |
37.6 |
41.5 |
10.3 |
44.0 |
-5.6 |
| Non-residential |
29.7 |
20.1 |
-32.3 |
53.2 |
-62.2 |
| Quebec |
1,061.5 |
983.4 |
-7.4 |
808.3 |
21.7 |
| Residential |
652.1 |
651.3 |
-0.1 |
533.0 |
22.2 |
| Non-residential |
409.5 |
332.1 |
-18.9 |
275.3 |
20.6 |
| Ontario |
2,019.2 |
2,645.1 |
31.0 |
1,876.1 |
41.0 |
| Residential |
1,251.6 |
1,280.7 |
2.3 |
1,243.2 |
3.0 |
| Non-residential |
767.6 |
1,364.4 |
77.7 |
632.9 |
115.6 |
| Manitoba |
115.0 |
114.1 |
-0.8 |
103.1 |
10.7 |
| Residential |
73.0 |
78.2 |
7.2 |
76.1 |
2.7 |
| Non-residential |
42.1 |
35.9 |
-14.7 |
27.0 |
33.2 |
| Saskatchewan |
82.8 |
108.8 |
31.4 |
84.0 |
29.6 |
| Residential |
55.6 |
66.9 |
20.3 |
42.2 |
58.5 |
| Non-residential |
27.2 |
41.9 |
54.0 |
41.8 |
0.3 |
| Alberta |
1,284.2 |
1,192.2 |
-7.2 |
820.0 |
45.4 |
| Residential |
658.2 |
757.6 |
15.1 |
595.3 |
27.3 |
| Non-residential |
626.1 |
434.6 |
-30.6 |
224.7 |
93.4 |
| British Columbia |
842.4 |
1,062.7 |
26.1 |
700.4 |
51.7 |
| Residential |
615.9 |
719.0 |
16.7 |
490.0 |
46.7 |
| Non-residential |
226.5 |
343.7 |
51.7 |
210.5 |
63.3 |
| Yukon |
4.0 |
4.4 |
8.5 |
3.9 |
12.1 |
| Residential |
2.4 |
2.6 |
7.3 |
3.7 |
-29.8 |
| Non-residential |
1.6 |
1.8 |
10.3 |
0.2 |
847.1 |
| Northwest Territories |
0.4 |
4.2 |
946.7 |
0.5 |
738.6 |
| Residential |
0.2 |
0.2 |
-7.4 |
0.1 |
90.2 |
| Non-residential |
0.2 |
4.0 |
1,789.3 |
0.4 |
883.7 |
| Nunavut |
4.6 |
1.4 |
-70.3 |
0.0 |
... |
| Residential |
3.5 |
1.3 |
-61.7 |
0.0 |
... |
| Non-residential |
1.1 |
0.0 |
-97.3 |
0.0 |
... |
| r | revised |
| p | preliminary |
| ... | figures not applicable |
| Note: | Data may not add to totals as a result of rounding. |
|
Note to readers
Unless otherwise stated, this release presents seasonally adjusted data, which ease comparisons by removing the effects of seasonal variations.
The Building Permits Survey covers 2,380 municipalities representing 95% of the population. It provides an early indication of building activity. The communities representing the other 5% of the population are very small, and their levels of building activity have little impact on the total.
The value of planned construction activities shown in this release excludes engineering projects (e.g., waterworks, sewers or culverts) and land.
For the purpose of the Building Permits release, the census metropolitan area of Ottawa—Gatineau is divided into two areas: Ottawa—Gatineau (Quebec part) and Ottawa—Gatineau (Ontario part).
|
RBC Survey Finds Homebuying Intentions Stable in Ontario A majority believe it's better to buy now rather than later
TORONTO - An RBC Royal Bank survey has found that homebuying intentions in Ontario are holding steady, with nine per cent of Ontarians saying they are "very likely" to buy a home within the next two years - virtually unchanged from 10 per cent last year and on par with the national average.
That being so, a large majority of Ontario residents (62 per cent) feel
that, given current housing prices and economic conditions, it makes more
sense to buy a home now rather than wait until next year. According to
RBC's14th Annual Homeownership Survey, 76 per cent of those who plan to buy
will opt for a resale home and 47 per cent said they will be looking to
purchase a home bigger than their current residence.
"The intention to buy is still strong, and we've seen very little change
over last year," said Paul Bimm, vice-president, Builder Markets, RBC Royal
Bank. "Ontarians still seem confident that housing prices are on the rise, and
that's perhaps why they're among the most likely Canadians to say the time to
buy is now."
The RBC poll found that 62 per cent of Ontario residents expect housing
prices will be higher by this time next year and half (51 per cent) said they
are concerned about interest rate increases in 2007. Forty-four per cent said
they expect to see mortgage rates higher in a year's time.
The poll also found that an overwhelming majority of Ontario residents
continue to see great value in homeownership, with 92 per cent saying that
buying a house or condominium is a "good" or "very good" investment. On
average, Ontario homeowners estimate the value of their homes at $234,628, and
believe their homes have risen in value by an average of 15 per cent over the
last two years.
Also according to the poll, Ontarians are among the most likely in Canada
to have a mortgage on their home (65 per cent). Ontario mortgage holders have
an average of $117,683 left to pay.
These are some of the findings of an RBC poll conducted by Ipsos Reid
between January 18 and 22, 2007. The online survey is based on a randomly
selected representative sample of 2,404 adult Canadians. With a sample of this
size, the results are considered accurate to within +/-2.0 percentage points,
19 times out of 20, of what they would have been had the entire adult Canadian
population been polled. The margin of error for residents of Ontario is
+/-3.4 per cent (N=847) and the margin of error for Ontario homeowners is
+/-4.2 per cent (N=541). The margin of error will be larger for other
sub-groupings of the population. These data were statistically weighted to
ensure the sample's regional and age/sex composition reflects that of the
actual Canadian population according to the 2001 Census data.
|
RBC survey finds Quebecers remain among least likely in Canada to purchase a home
MONTREAL - Buying intentions among Quebecers remain the lowest in the country, according to RBC Royal Bank's 14th Annual Homeownership Survey. The poll found that 20 per cent of Quebec residents said they are likely to purchase a home in the next two years, well below the national level of 28 per cent. The proportion "very likely" to purchase is down one point from last year (6 per cent vs. 7 per cent), and is also below the national average of 9 per cent.
In fact, Quebecers (51 per cent) are most likely to say it makes more
sense to wait until next year to buy a home, rather than purchase one now.
According to the poll, of those who plan to buy in the next two years, 59 per
cent said they are likely to buy a bigger home, while 24 per cent will be
looking for something around the same size as their current residence.
Seventy-eight per cent of those planning to buy will opt for a resale home.
"Similar to what we saw last year, buying intentions remain comparatively
low in Quebec and they continue to show signs of softening," said Danielle
Coutlée, manager, Sales Strategy & Support. "Unlike other areas in the
country, Quebecers don't seem to be as certain that housing prices will rise,
and they are less concerned about interest rate hikes this year."
The poll found that at 47 per cent, Quebecers are the least likely in
Canada to expect housing prices to be higher by this time next year -
significantly lower than the national average of 59 per cent. Quebecers were
also the least likely (46 per cent) to say they are concerned about interest
rate increases in 2007. Thirty-eight per cent said they expect to see mortgage
rates higher in a year's time - again, the lowest percentage in the country.
While a majority of the region's residents continue to see great value in
homeownership (87 per cent said buying a house or condominium is a "good" or
"very good" investment) they are the least likely across the country to think
so. On average, Quebec homeowners estimate the value of their homes at
$155,328. They also believe their homes have risen in value by an average of
19 per cent over the last two years.
Also according to the poll, 64 per cent of Quebecers have a mortgage,
second only to Ontarians and British Columbians (both at 65 per cent). On
average, Quebec mortgage holders said they have $70,849 outstanding on their
mortgages.
|
Residential construction investment increased in Annual 2006 and fourth quarter 2006
The total investment in residential construction increased 8.5% to $79.8 billion in 2006 compared with a year earlier. All three components comprising residential construction investment posted gains (new housing, renovation, and acquisition costs). This was the eighth consecutive annual increase and a record high value.
The main factors that contributed to strong demand for housing were the dynamic economy in Western Canada, coupled with inter-provincial migration, increases in employment, international immigration, and the still relatively low mortgage rates. Higher house prices also played an important role in the increase in the investment figure, as the number of housing starts remained almost unchanged.
Investment in new housing was responsible for the biggest contribution (in dollars), increasing 9.2% to $40.7 billion. Single-family homes, up 9.4% to $25.5 billion, and apartments/condominiums, up 13.2% to $9.3 billion, were the major contributors to the increase in this component.
In 2006, the New Housing Price Index showed an annual increase of 10.2% (house component only) in contractors selling prices of new residential houses. In fact, in constant dollars terms, investment for new single-family dwellings was only 0.1% higher than in 2005 and the growth for investment in new apartment/condominiums totalled 5.1%.
Renovation investments increased 8.7% to $32.0 billion and accounted for 40.1% of total residential construction investment in 2006.
In 2006, acquisition costs accounted for 8.9% of total investment or $7.1 billion, up 4.1% from 2005.
Nine provinces saw increased investment compared to 2005, with the only decline occurring in Prince Edward Island (-2.7%). Alberta and British Columbia led the way with increases of 26.8% and 18.0% respectively. The gains seen in Alberta were driven by new single-family homes (+39.7% to $6.2 billion), while the increase in British Columbia hinged on both single-family homes (+25.8% to $3.8 billion) and apartments/condominiums (+30.1% to $2.5 billion).
Excluding Alberta and British Columbia, total investment was $54.6 billion, up 3.2% from 2005, new housing investment was down 0.7% to $25.2 billion, while renovation investment was up 8.6% at $24.7 billion.
Total investment in Quebec increased 1.2%, resulting from the offsetting effects of an increase in renovations (+8.3% to $8.0 billion) and an important decline in single-family homes (-6.9% to $4.4 billion).
In Ontario, overall investment in new housing remained relatively unchanged, but an increase in renovations of 9.0% or $1 billion, resulted in total residential investment reaching $29.4 billion, up 3.8% over 2005.
Investment in residential construction increased 7.4% to $20.4 billion in the fourth quarter of 2006, compared to the same quarter a year earlier. Renovation investment grew 8.2% to $8.0 billion, while new housing investment grew 8.1% to $10.6 billion. Investment due to acquisition costs remained virtually unchanged from the fourth quarter of 2005 at $1.8 billion.
Note: Residential construction investment is divided into three main components. The first is new housing construction, which includes single dwellings, semi-detached dwellings, row housing and apartments, cottages, mobile homes and additional housing units created from non-residential buildings or other types of residential structures (conversions).
The second component of residential construction investment (renovations) includes alterations and improvements in existing dwellings. The third component is acquisition costs, which refers to the value of services relating to the sale of new dwellings. These costs include sales tax, land development and service charges, as well as record-processing fees for mortgage insurance and the associated premiums.
|
Most Prestigious Canadian Home Builder Award Goes to Amico Properties/Bob-Lo Island For Development of the Year
Amherstburg - Bob-Lo Island, A Marina Resort Community developed by Amico Properties, has reached the pinnacle of achievement in the Canadian residential construction industry by winning the Grand SAM Award at the Canadian Home Builders' Association (CHBA) Annual National Conference held in Charlevoix, Quebec on February 24th.
The Grand SAM Award is the ultimate award given out to a developer member for the
best design and marketing of a project in all of Canada. The project must demonstrate
excellence in both the building and marketing of a single project.
According to Dave Benbow, president of CHBA, becoming a finalist and winning a SAM
award is a real honor and distinction. "It really doesn't get much better for a builder or
developer than to be recognized by your business colleagues," remarked Benbow. "With
a record number of entries from across Canada to choose from, the judges had their
hands full. The competition was fierce and finalists certainly can be proud of their
efforts."
Bob-Lo Island, a 272-acre marina resort community nestled in the Detroit River and the
gateway to Lake Erie, is part of the quaint historical village of Amherstburg, Canada.
For over 100 years, Bob-Lo was a famous regional amusement park, a favorite family
entertainment venue for residents from both the Ontario and Detroit regions.
Today, the island has been converted into a luxury marina resort community offering a
mix of residential products and resort amenities for both primary and second home
residents. Designed by award-winning Alexander V. Bogaerts & Associates, home
options include mid-rise waterfront condominiums, townhomes, detached single-family
homes and bungalows with prices starting at $275,000 (U.S.). Custom waterfront lots
are also available and will be released this spring. Visit www.bobloisland.ca for more
information.
President and CEO of Amico Properties, Dominic Amicone says, "Having the title of
Developer/Development of the Year bestowed upon us and being selected as a finalist in
six categories states volumes to the unique attributes of Bob-Lo Island. The efforts and
results of the 'dream team' we established to make this community one of the best
residential and second home resort communities in North America is now validated. It is
this commitment to excellence that will prevail at Bob-Lo Island throughout the life of
the project."
Bob-Lo also won Best Brochure/Kit that includes a beautiful community history piece and
a brochure describing the spectacular residents and island amenities. Bob-Lo was a
finalist in more categories than any other development.
The $500,000,000 marina resort island's master plan was a cooperative effort between
Amico Properties and JJR of Ann Arbor, Michigan. JJR is renowned for designing top
resorts and marina communities throughout the United States. Another invaluable team
member, G.Ryan Design, is an international leader and innovator in the field of real
estate marketing, luxury recreational marketing, advertising, graphic and environmental
design.
Amenities and future plans of Bob-Lo Island include parks, an athletic/fitness club, Yacht
Club, 500 state-of-the-art boat slips, croquet and putting greens, swimming pools,
skating rink, game rooms, bike and walking paths, white sand beaches, an indoor/
outdoor waterpark, resort hotel with a full-service spa and a retail village featuring
eclectic boutique stores and restaurants. This island represents a year-round paradise.
Known for its majestic beauty and serenity, Amico Properties have taken meticulous
steps to preserve and enhance the island's varied natural habitat, creating an uncommon
bond of humans and wildlife.
Amico Properties is a leading commercial and residential resort developer based in
Oldcastle, Ontario, Canada with projects across the country.
Amico Properties is owned by Triamico, a leading international developer of premier
communities and retail commercial projects. Since 1987, Triamico has excelled in
tailoring products to reflect lifestyle trends, including affordable homes, resort
properties and fully integrated retirement communities. The company is experienced in
all facets of site infrastructure, planning and engineering and construction. Each year,
Triamico's economic impact to the local community is in excess of $250 million.
|
Cadillac Fairview's TD Centre wins Canada's top environmental award for commercial buildings
TORONTO - The Toronto-Dominion Centre today was awarded the Go Green Plus certification from the Building Owners and Managers Association (BOMA) February 26, 2007, for implementing environmental best practices in all aspects of building management and operation which include resource consumption, waste reduction, recycling, building materials, interior environment and tenant awareness just to name a few.
"The Toronto-Dominion Centre has for years been a landmark in the downtown financial district. Today, it stands as an environmental leader," said BOMA President Mike Miceli in presenting the awards at a ceremony today.
The revitalized TD Centre, an Ontario Heritage site built in 1967 joins a very select group of commercial properties that have been certified Go Green Plus across Canada, which was accomplished through major energy use reductions and more than 25 energy efficiency measures that are currently in place.
Peter Sharpe, President and CEO of Cadillac Fairview spoke quite passionately to attendees that included lead tenants, energy partners and many industry stakeholders. "I am particularly proud of the BOMA "Go Green Plus" award that recognizes our long-standing commitment to the environment by adopting the latest green technologies and business practices."
By continuously investing in new technology Cadillac Fairview has become a recognized industry role model. When the company adopted Enwave's deep water cooling back in 2004, it was the largest project of its kind in the world and the first of its kind in Canada.
At TD Centre alone, it has reduced its energy usage by 27 percent, saving 12 million kilowatt hours in 2006, and an 8.8 Megawatt reduction during summer peak demand when the city power grid is most vulnerable.
"We hope that our success will be a catalyst for other business leaders to take similar actions and support sustainability practices" added Sharpe. "The many steps we've taken to improve the environment in our buildings have led to a win-win-win solution that is benefiting our tenants, our company and the community-at-large."
The benefits of greener buildings are everywhere. For the public, it will help ease electricity demands during peak summer hours and reduce overall energy consumption. For future generations, it means less CO2 emissions and significantly reduced waste as recycling programs continue to prove their value.
For building tenants, these types of green initiatives will help to keep their utility costs as low as possible while maintaining the same level of quality AAA office comfort to which they are accustomed. For other businesses, it may help to encourage them to adopt new energy efficient technologies and improve their daily operations.
Ontario Minister of Energy, Dwight Duncan was also in attendance to recognize Cadillac Fairview and office tower tenants for their commitment to green initiatives and accomplishing major energy reductions.
"I want to congratulate the Toronto Dominion Centre on its continuing commitment to energy conservation," said Minister Duncan. "The commercial building sector has a key role to play as we build a conservation culture in Ontario."
|
Revisiting Lumber Pact Would Impact Housing Affordability
WASHINGTON - In a development that could have negative repercussions for housing affordability and American consumers, the U.S. government may be attempting to squeeze even more concessions out of Ottawa less than four months after a trade pact went into effect that governs softwood lumber imports from Canada, according to the National Association of Home Builders (NAHB).
"In what appears to be a bid to put new pressure on the Canadian
government to consider even more onerous concessions that would further harm
its lumber industry and hurt American consumers in order to make a handful of
major U.S. lumber producers happy, Washington seems to be alleging that Ottawa
is trying to subsidize its lumber industry through lower utility rates," said
Jerry Howard, executive vice president and CEO NAHB.
The two nations concluded a seven-year deal last fall that imposes an
export tax of 15 percent on this vital commodity at current prices, which
essentially helps domestic producers and harms housing affordability by
artificially boosting lumber prices during periods of normal or slow demand.
U.S. Trade Representative Susan Schwab last week cast doubt on the
viability of the long-term treaty, testifying that the "deal with Canada is
threatened by provincial governments." A published report said that Washington
is apparently alleging that reduced electricity rates in Ontario is providing
an unfair trading advantage for Canadian lumber producers.
"If it is true that the U.S. is willing to go out on a limb to say that
lower utility rates in Ontario pose an unfair advantage to Canadian lumber
producers, then the Canadian government ought to reasonably conclude that the
U.S. is not committed to honoring this agreement and is looking for any excuse
to re-open the accord to achieve even more favorable terms for domestic lumber
producers," said Howard.
Such a development would almost surely bode poorly for the Canadian
industry and American consumers alike, he noted.
"The current agreement is bad for American home builders and consumers
because it will increase volatility in supply and prices," said Howard.
"Further attempts at tampering will only exacerbate this situation. If the
U.S. is seeking any pretext to charge that Canada is cheating, perhaps it is
in the best interests of Ottawa to look at exercising its options to withdraw
from this agreement."
|
Apartment Building Construction Price Index Fourth quarter 2006
The composite price index for apartment building construction (1997=100) stood at 147.3 in the fourth quarter of 2006, up 2.4% from the previous quarter and up 9.7% from the fourth quarter of 2005. The quarterly increase was mostly the result of higher labour costs and a strong market for building construction, particularly in Western Canada. Also, the year-to-year advance was the largest since the index was first published in the first quarter of 1988.
Western Canada recorded the highest quarterly changes, led by Calgary (+6.8%), Edmonton (+6.2%) and Vancouver (+4.6%). Lower price increases were measured in Eastern Canada, with a 0.8% advance in Toronto followed by Ottawa–Gatineau (Ontario part) (+0.6%), Halifax (+0.4%) and Montréal (+0.1%).
Calgary experienced the highest gain from the fourth quarter of 2005 (+21.9%), followed by Edmonton (+18.9%), Vancouver (+15.7%), Toronto (+6.5%), Ottawa–Gatineau (Ontario part) (+5.7%), Halifax (+5.3%) and Montréal (+3.5%).
Note: The apartment building construction price indexes provide an indication of new construction cost changes in six census metropolitan areas (CMAs) (Halifax, Montréal, Toronto, Calgary, Edmonton and Vancouver) and the Ontario part of the Ottawa–Gatineau CMA. Besides each of the CMA indexes and the composite index, there are further breakdowns of cost changes by trade groups within the building (structural, architectural, mechanical and electrical). These price indexes are derived from surveys of general and special trade-group contractors who report on the categories of costs (material, labour, equipment, taxes, overhead and profits) relevant to the detailed construction specifications included in the surveys.
|
Toronto builders win national competition to build energy-efficient homes
OTTAWA - Skyrocketing fuel costs and the growing impacts of climate change are leading more Canadians than ever to take a second look at everything from the cars we drive to the homes we live in. Two Toronto builders are doing their part by designing houses that are healthy, energy-efficient and affordable - projects that won a nationwide sustainable-home competition held by Canada Mortgage and Housing Competition (CMHC).
Sustainable Urbanism Initiative's "Davenport Townhouses" and New House
Project's "Now House" are two of only 12 designs from across Canada to win the
Equilibrium housing initiative competition launched by CMHC last spring.
EQuilibrium housing is designed to lower homeowners' energy bills by reducing
energy consumption and delivering electricity back to the grid. The homes will
also promote water conservation, healthy indoor environments, durability, and
reduced pollutant emissions.
The Davenport Townhouses proposal will see three townhouses located in
Toronto's downtown Annex area. They will incorporate energy-efficient features
such as spectrally selective window glazing and will also showcase ground
source heat pumps powered by electricity generated through photovoltaic cells
covering the roof of each unit. The fact that the townhouses will be located
in a part of town well-served by transit highlights two sustainable urban
design imperatives - reducing dependence on the automobile, and efficient use
of existing infrastructure.
"Now House" will see an existing post-World War II house in Toronto
retrofited to meet EQuilibrium's goals. Insulation upgrades, new windows,
Energy Star appliances, wastewater heat recovery, and solar panels are some of
the ways the house's energy usage footprint and greenhouse gas emissions will
be reduced. The goal is to demonstrate how homeowners and their local
contractors can improve energy efficiency of older housing with a few simple
but innovative modifications.
A selection committee of independent housing experts chose the 12 winning
teams from a pool of 72 applicants. The winners each receive $50,000 from CMHC
to help defray the cost of building the demonstration homes, which will be
open to the public by 2008. CMHC is also providing technical and promotional
support.
"Almost half of greenhouse gas emissions in Canada come from the
operation of buildings, so it stands to reason that if we deal efficiently
with today's built-environment, it will have a positive impact on our future,"
said Vivian Manasc, President of the Royal Architecture Institute of Canada.
"EQuilibrium is a promising example of how government and industry can work to
support a healthier and more sustainable future for all Canadians."
Once they are complete, the demonstration homes will offer the
opportunity to measure the performance of EQuilibrium housing under real-world
conditions on a national scale. They will also help spearhead the spread of
healthy, sustainable and energy-efficient housing across Canada.
|
Canadian Commercial Real Estate Market Surpassed Expectations in 2006
Trend to continue in 2007, but market could overheat
TORONTO - 2006 was one of the best years of the last
decade for commercial real estate in Canada, but trouble could be brewing as
construction costs escalate, according to The Barnicke Report - Global Views
2007. The report is produced annually by J.J. Barnicke, Canada's largest
independently owned commercial real estate brokerage. The report can be
downloaded and viewed in its entirety at www.jjb.com and by selecting the
"publications" icon.
<<
Key trends observed by market segment across Canada in 2006 included:
Office Market - Nationally, the trend was very positive with
declining vacancy as a result of positive economic conditions. An
emphasis on development continued with a significant increase in
office construction activity across Canada; particularly in Toronto
and Calgary.
Industrial Market - While growth in eastern Canada was moderate in
2006, western Canada experienced exceptional expansion in this
segment. Availability of land is becoming a key issue across all
markets, with corresponding increases in pricing fuelling growth and
activity in secondary markets across the country.
Retail Market - Similar to the case in the industrial real estate
market, good locations were in short supply. This was a result of new
retailers continuing to enter the Canadian market and e-commerce not
leading to the predicted demise of retail, but rather complementing
bricks and mortar locations.
>>
"The pessimists who believed 2006 might have troubled times missed out.
There is nothing on the horizon that would suggest 2007 will not be another
good year for the commercial real estate industry," says Joseph J. Barnicke,
Chairman. "However, there is an over supply of dollars for investment, and
construction costs are escalating - in some areas up to 30%. If construction
costs rise to the point where market rents cannot justify building, there will
be added pressure as demand outpaces supply."
|
Non-residential Building Construction Price Index Fourth quarter 2006
The composite price index for non-residential building construction increased 2.4% from the previous quarter to 149.4 (1997=100) in the fourth quarter, up 9.3% from the fourth quarter of 2005. The 2.4% increase was mostly the result of higher labour costs and the persistent strength of the non-residential building construction market, particularly in Western Canada.
Western Canada recorded the highest increases from the third quarter with Calgary posting a 5.9% increase, followed by Edmonton (+5.5%) and Vancouver (+4.0%). Smaller upward movements were recorded in Eastern Canada with Ottawa–Gatineau, Ontario part, increasing 1.3%, followed by Toronto (+1.1%), Halifax (+0.8%) and Montréal (+0.4%).
Calgary also had the largest change (+18.8%) from the fourth quarter of 2005, followed by Edmonton (+16.6%), Vancouver (+12.9%), Toronto (+6.8%), Ottawa–Gatineau, Ontario part (+6.4%), Halifax (+4.9%) and Montreal (+3.2%).
Note: Non-residential building construction price indexes provide an indication of changes in construction costs in six census metropolitan areas or CMAs (Halifax, Montréal, Toronto, Calgary, Edmonton and Vancouver) and the Ontario part of the Ottawa–Gatineau CMA.
Three construction categories (industrial, commercial and institutional buildings) are represented by selected models (a light factory building, an office building, a warehouse, a shopping centre and a school).
Besides the census metropolitan areas and composite indexes, a further breakdown of the changes in costs is available by trade group (structural, architectural, mechanical and electrical) within the building types.
These price indexes are derived from surveys of general and special trade group contractors. They report data on various categories of costs (material, labour, equipment, taxes, overhead and profit) relevant to the detailed construction specifications included in the surveys.
| Non-residential building construction price indexes |
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Fourth quarter 2006 |
Fourth quarter 2005 to fourth quarter 2006 |
Third to fourth quarter 2006 |
| |
(1997=100) |
% change |
| Composite |
149.4 |
9.3 |
2.4 |
| Halifax |
129.7 |
4.9 |
0.8 |
| Montréal |
134.9 |
3.2 |
0.4 |
| Ottawa–Gatineau, Ontario part |
144.0 |
6.4 |
1.3 |
| Toronto |
151.6 |
6.8 |
1.1 |
| Calgary |
166.3 |
18.8 |
5.9 |
| Edmonton |
160.5 |
16.6 |
5.5 |
| Vancouver |
147.5 |
12.9 |
4.0 |
| 1. | Go online to view the census subdivisions that comprise the census metropolitan areas. |
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New Housing Price Index for December 2006
The New Housing Price Index remained at 147.5 (1997=100) in December. This was the first time since June 2000 that prices did not advance at the national level. Compared to one year ago, contractors' selling prices increased 10.7%.
There were price increases in 9 of the 21 metropolitan areas surveyed. Saskatoon had the largest monthly increase at 3.0%, followed by Regina (+1.9%) and London (+0.7%). Costs for construction materials, in particular electrical, drywall, roofing and windows, plus labour rates, were the contributing factors. In Saskatoon, increased lot values affected by city levies were also cited.
Gains were also observed in Winnipeg, Hamilton, Kitchener, Edmonton, St. John's and Toronto and Oshawa. Of the nine metropolitan areas showing increases, land prices rose in four.
Six metropolitan areas registered no monthly change. Among those showing decreases were Calgary (-0.5%) and Victoria (-0.4%), due mainly to a moderating market. Prices in Greater Sudbury / Grand Sudbury and Thunder Bay, Windsor, St. Catharines–Niagara and Saint John, Fredericton and Moncton were also down from November.
Despite showing a monthly drop, Calgary (+42.4%) posted the largest 12-month increase once again, followed closely by Edmonton (+41.5%). Saskatoon (+16.1%), Regina (+12.3%), Vancouver (+8.2%) and Winnipeg (+7.9%) also had noteworthy year-over-year gains.
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Guelph Excellence in Urban Design Award Winners Announced
On Monday night the first-ever Excellence in Urban Design Awards were presented at Guelph City Council by Mayor Karen Farbridge to five winners in four award categories. The winners are:
Winning Project
Category
Owner (s)
Village by the Arboretum
Residential
Reid’s Heritage Homes and The University of Guelph
AgriCentre
Industrial / Commercial / Institutional
Ontario Agricentre Ltd.
Guelph Hydro Administration Centre
Environmental Innovation
Guelph Hydro Electric Systems
Graystone Residences
Heritage / Adaptive Reuse / Infill
J. Lammer Developments Ltd.
Old Quebec Street
(co-winners)
The Barrel Works Guelph Ltd.
The Excellence in Urban Design Awards were presented by the City of Guelph in conjunction with the Guelph Development Association. The competition was initiated to formally recognize excellence in our urban environment and to promote public awareness of how good design and architectural distinction play a vital role in enhancing quality of life in Guelph.
“I am pleased that we are recognizing those innovators in our community that are leading the way as we plan and manage for our city’s sustainable future,” said Mayor Karen Farbridge. “I’d like to congratulate each of the winners and their teams that worked so hard to make these projects a success.”
The winners were selected by a five-person selection jury consisting of both City staff members and industry representatives. In the Residential category, Village by the Arboretum, a project of Reid’s Heritage Homes and The University of Guelph, was recognized for smaller scaled local roads, alternative standards to building setbacks and lot patterns that reinforce the pedestrian environment. It also demonstrated how storm water management systems have been well integrated into the community.
The AgriCentre, owned by Ontario Agricentre Ltd., was chosen in the Industrial / Commercial / Institutional category for demonstrating a high standard of execution that included appropriate building materials and a high quality of construction.
The winner in the Environmental Innovation category was the Guelph Hydro Administration and Service Centre. Guelph Hydro Electric Systems was the leader in this category, having incorporated lower energy content building materials with fewer harmful by-products or emissions into the facility. The building boasts energy savings of roughly 40% when compared to less energy efficient buildings.
The Heritage / Adaptive Reuse / Infill category awarded two winners. Graystone Residences involved the conversion of the historic Guelph Street Railway car barns. The history of the site is celebrated in the interior covered court used to organize the housing units within the heritage building. The development of the Graystone Residences also required the clean up of brown field site conditions which is an added civic contribution of this worthy project.
Old Quebec Street involved the adaptive reuse of the mall portion of the former Eaton Centre and makes a number of positive contributions to the urban design of downtown Guelph. The Old Quebec Street development takes advantage of the adjacent parkades and pedestrian access off St. George’s Square and nearby bus stops. The weather-protected streetscape and well-detailed interior façade treatment have been designed to evoke Guelph’s downtown architectural heritage.
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Building permits Annual 2006 Hit High in 2006
Construction intentions hit another record high in 2006, thanks mainly to soaring demand for residential and non-residential space in Western Canada. The annual level of permits has now increased for 11 consecutive years.
Municipalities issued a record $66.2 billion worth of building permits, up 9.0% from the previous high of $60.8 billion in 2005. Construction intentions in both the residential and non-residential sectors reached new highs.
Intentions also set new records in every province, except Prince Edward Island and Ontario.
Even so, the overall picture would have been less robust without the two westernmost provinces. If Alberta and British Columbia were excluded, the overall value of permits would have increased by just 1.0%, instead of 9.0%. These two provinces showed the biggest gains for both residential and non-residential components.
In the housing sector, the value of permits surpassed the $40-billion mark for the first time, increasing 5.9% to $41.0 billion. Municipalities actually approved fewer new dwellings for the second year in a row, but the value set a record because of higher prices.
In November, the New Housing Price Index showed a 12-month increase of 11.4% in contractors' selling prices of new residential houses. Among metropolitan areas, Calgary (+49.8%) and Edmonton (+42.8%) had very high year-over-year gains.
Municipal authorities approved construction of 232,605 new dwelling units in 2006, down 2.7% from 2005. The level in 2006 was only 3.7% lower than the 241,470 units approved in 2004, which was the highest since 1987.
In the non-residential sector, the value of permits hit $25.2 billion in 2006, up 14.5% from the previous record of $22.0 billion in 2005. Gains occurred in all three non-residential components — industrial, institutional and commercial.
Regionally, the value of permits increased in 20 of the 28 census metropolitan areas in 2006. Annual gains in Calgary, Vancouver and Edmonton largely surpassed increases in all other areas, as the value of permits for residential and non-residential buildings soared in those centres.
All metropolitan areas in Atlantic Canada and Western Canada, as well as Sherbrooke, Kingston and London, set new record highs in 2006.
Except for Québec, all metropolitan areas showing a decline were located in Ontario. Toronto and Ottawa posted the largest retreats.
Housing: Demand for single-family dwellings softens
Demand for single-family dwellings softened in 2006, as the number of units approved fell to a five-year low. Municipalities approved 119,140 single-family units, down 2.2% from 2005.
Even so, the value of single-family permits jumped 6.3% to $26.7 billion in the wake of higher prices, especially in Alberta.
Demand was also off for multi-family units. Municipalities approved 113,465 multi-family units, down 3.2%, but this was still the second highest level since 1988. The value of permits for these units hit $14.3 billion in 2006, up 5.1% from 2005.
Factors contributing to the strong housing market included a dynamic economy in Western Canada, the strong level of employment, the growth in disposable income, the tight apartment vacancy rates in several centres and advantageous mortgage rates.
Non-residential sector: New highs for commercial and institutional permits
All three components contributed to the record year for non-residential construction intentions.
The value of commercial permits hit a record high of $14.4 billion, up 20.4% from 2005. It was the third annual record in a row, thanks to record values for office buildings and trade and service buildings.
The institutional component rose 3.6% to $6.3 billion, also a new record. This growth was based mainly on strong construction intentions in the education and medical categories.
Industrial construction intentions rose 13.3% to $4.5 billion in 2006, the second highest level ever, surpassed only by the record set in 1989. The main factor behind this gain was construction projects for manufacturing buildings and in the utility and transportation categories.
Increases were posted in eight provinces in 2006, with the largest gains (in dollars) occurring in Alberta (+38.5% to 5.7 billion) and British Columbia (+21.9% to $3.9 billion). Both set record highs in all three components.
Several economic factors were consistent with a fertile environment for the non-residential building intentions in 2006, including growth in consumer spending, declining vacancy rates for office buildings in several centres and the high level of corporate operating profits.
December 2006: Retreat in both residential and non-residential permits
On a monthly basis, the total value of building permits totalled $5.8 billion in December, down 7.8% from the record value of $6.3 billion in permits issued in November.
Despite the decline, this level was 3.9% higher than the average monthly level in 2006. The value of both residential and non-residential permits declined in December.
The value of housing permits fell 5.1% to $3.5 billion, the third decline in the last four months. The decline was due solely to the multi-family component, where intentions plunged 20.9% to $1.2 billion. The value of single-family permits increased 5.5% to $2.3 billion, halting three consecutive monthly declines.
In the non-residential sector, construction intentions retreated 11.7% to $2.3 billion. This decline followed four consecutive monthly gains. Intentions fell in all three non-residential components.
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