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United Rentals Announces Agreement To Be Acquired By Cerberus Capital Management
United Rentals Stockholders to Receive $34.50 Per Share in Cash in a Transaction Valued at Approximately $6.6 Billion
GREENWICH, CONN. - United Rentals, Inc. (NYSE: URI) today announced that it has signed a definitive merger agreement to be acquired by affiliates of Cerberus Capital Management, L.P. ("Cerberus"), in a transaction valued at approximately $6.6 billion, including the assumption of approximately $2.6 billion in debt obligations.
Under the terms of the agreement, United Rentals stockholders will
receive $34.50 in cash for each share of United Rentals common stock that they
hold. The purchase price per share represents a 25% premium over United
Rentals' closing share price of $27.55 prior to the company's announcement on
April 10, 2007 that it had commenced a process to explore a broad range of
strategic alternatives.
Bradley S. Jacobs, chairman of United Rentals, said, "We're pleased that
our strategic alternatives process has resulted in this favorable agreement
for our shareholders. This transaction is a credit to the thousands of United
Rentals employees who have created unmatched value in our industry. A decade
ago we started United Rentals with little more than a concept and achieved
industry leadership in just 13 months. Today we remain the preeminent
equipment rental company in the world."
Michael J. Kneeland, chief executive officer of United Rentals, said, "We
will continue to focus intensely on customer service and employee
satisfaction. Cerberus is a firm that shares our deep respect for operational
excellence. They have an impressive track record of investing in industry
leaders and working constructively with management teams to accelerate
profitability and growth."
The board of directors of United Rentals has approved the merger
agreement and has recommended the approval of the transaction by United
Rentals stockholders.
Completion of the transaction is subject to customary closing conditions,
including approval of the transaction by United Rentals' stockholders and
regulatory review. Stockholders will be asked to vote on the proposed
transaction at a special meeting that will be held on a date to be announced.
Holders of the company's preferred stock, including affiliates of Apollo
Management, L.P., which represent approximately 18% of the voting power of the
capital stock of United Rentals, have agreed to vote their shares in favor of
the merger.
Under the agreement, United Rentals may continue to solicit proposals for
alternative transactions from third parties for a period of 30 business days
continuing through August 31, 2007. There can be no assurances that this
solicitation will result in an alternative transaction. United Rentals does
not intend to disclose developments with respect to this solicitation process
unless and until its board of directors has made a decision regarding any
alternative proposals that may be made.
UBS Investment Bank acted as financial advisor to United Rentals in
connection with the strategic review process and the transaction. Simpson
Thacher & Bartlett LLP acted as legal advisor to United Rentals. Lowenstein
Sandler PC, and Schulte, Roth & Zabel acted as legal advisor to Cerberus. Bank
of America, Credit Suisse, Morgan Stanley and Lehman Brothers have committed
to provide debt financing.
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New home market up 33 per cent in June
TORONTO - New home sales in the Greater Toronto Area rose by a remarkable 33 per cent in June with high-rise condos capturing a near-record share of total sales, Bob Finnigan, president of the Building Industry and Land Development Association (BILD), revealed July 19, 2007.
According to RealNet Canada Inc., BILD's official source of new home
market information, there were 5,013 new homes and condos sold in June with
high-rise unit sales taking a 58 per cent share of the market.
Finnigan noted that low-rise (single-detached, semi-detached and
town-home) sales were up 40 per cent with gains in every region, while
high-rise (condo suites and lofts) sales were up 28 per cent with declines in
the 905 regions offset by a healthy increase in condo sales in the City of
Toronto.
"Monthly new home sales have not exceeded the 5,000 unit threshold since
2002 so these results come as a very pleasant surprise," said Finnigan, who
added that year to date new home sales are up a healthy 5.4 per cent compared
to the first six months of 2006.
Finnigan attributed the market strength to a combination of factors
including buyers locking-in in advance of interest rate increases, a spate of
high-profile new project launches, particularly by Toronto condo builders, and
superb overall value aided by the healthy competitive market which persists
among homebuilders in the GTA.
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Organizational Changes at Morrison Hershfield Limited
TORONTO - Ron Wilson, P.Eng., CEO of the Morrison
Hershfield Group of Companies, announces that effective August 1, 2007, Bruce
Miller, P.Eng., is appointed President of Morrison Hershfield Limited, the
Canadian operating arm.
"We are excited about this change," comments Ron Wilson. "Our clients
will benefit from the wealth of management and engineering experience Bruce
brings to this position." Bruce will operate from his home base in Calgary.
Dwayne Johnston, P.Eng., will succeed Bruce as Vice President, Infrastructure
West.
Over the past year MHL has seen other pivotal changes. Catherine
Karakatsanis, P.Eng., was appointed Senior Vice President of the Buildings and
Facilities Division. David Pavey, H.B.A., CA, joined as Vice President,
Finance and Corporate Services and Pelly Shafto, H.R.P.A.O., joined as Vice
President, Human Resources.
Morrison Hershfield is an employee-owned company, in which employees have
a vested interest in being partners in our clients' success. Integrated
engineering and management services are provided to clients in the
transportation, water and wastewater, land development, life sciences,
buildings and facilities, communications and industrial infrastructure
sectors, from offices in twelve cities across North America.
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New Housing Price Index for May 2007
New housing prices in Canada increased at their slowest pace in just over a year in May, continuing a trend in deceleration that started in September 2006.
Contractors' selling prices in May were 8.6% higher than they were in May 2006. This increase was slightly slower than the 8.9% year-over-year gain recorded in April.
It was the slowest increase since April 2006. However, May still marked the 14th consecutive month of year-over-year increases above 8%.
On a monthly basis, new housing prices were up 1.1% from April. The New Housing Price Index for May reached 152.1 (1997=100).
Housing prices in Saskatchewan (+30.7%) and Alberta (+27.9%) accounted for most of the 8.6% year-over-year increase in May.
Year-over-year gains of only 2.6% in Ontario and 3.8% in Quebec had a moderating influence on the national average.
By far the biggest year-over-year increase on a municipal basis occurred in the census metropolitan area (CMA) of Saskatoon. This was largely due to the healthy economy of Saskatchewan and its recent population growth, the result of recent net gains in interprovincial migration from Alberta.
Saskatoon contractors increased their prices by 38.6% between May 2006 and May 2007. In Regina, the year-over-year rise was 21.6%. These were the fastest advances for both CMAs in 26 years and continued a year-long trend of accelerating price increases.
Contractors in the CMA of Edmonton recorded a year-over-year gain of 37.0% in May, while prices in Calgary were up 22.0%. While still substantial, these price increases represented a 10-month low for Edmonton and a 16-month low for Calgary.
After recording a dizzying year-over-year increase of 60.6% in August 2006, price advances in Calgary have since decelerated every month. Prices in Edmonton have slowed down after a high growth rate of 42.8% in November 2006.
The only other CMA to show an increase above the national average was Vancouver. Contractors there boosted their prices by 8.8% from May 2006, continuing a recent trend of accelerating price increases.
In Winnipeg, the year-over-year rise was 6.5%, its slowest since June 2004, in line with a recent trend in deceleration. Trailing all CMAs in the West was Victoria, where new housing prices were virtually stable (+0.3%).
Halifax recorded a year-over-year increase of 7.1%, its largest since 1985. St. John's is also starting to show a healthier market. Prices there rose 4.8%, the fastest gain in nine months, and above the Atlantic Provinces' average of 3.9%.
In Central Canada, homebuilders in Hamilton increased their prices by 6.1% from May 2006, the 11th consecutive month of growth above 5% for this CMA.
Greater Sudbury and Thunder Bay followed with a 4.7% gain, mainly the result of increases in the wages of skilled trade labourers. A 4.3% rise in London was due to competitive factors and increases in land prices.
Increases in wage rates and material costs resulted in gains of 3.9% in Montréal and 3.5% in Québec. The only CMA to record a year-over-year decline was Windsor, where prices fell 1.0%, the eighth consecutive monthly decrease.
On a monthly basis, prices rose 10.9% between April and May in Saskatoon, 4.0% in Regina and 4.7% in Halifax. No CMA in Central Canada recorded increases of more than 1.0%.
The only CMAs to show monthly declines were Windsor (-0.2%) and St. Catharines–Niagara (-0.1%).
| New Housing Price Indexes |
| |
May 2007 |
May 2006 to May 2007 |
April to May 2007 |
| |
(1997=100) |
% change |
| Canada total |
152.1 |
8.6 |
1.1 |
| House only |
162.1 |
8.3 |
1.2 |
| Land only |
132.5 |
9.7 |
0.8 |
| St. John's |
134.4 |
4.8 |
1.4 |
| Halifax |
139.4 |
7.1 |
4.7 |
| Charlottetown |
117.8 |
0.8 |
0.6 |
| Saint John, Fredericton and Moncton |
113.5 |
0.6 |
0.5 |
| Québec |
147.0 |
3.5 |
0.2 |
| Montréal |
153.3 |
3.9 |
0.4 |
| Ottawa–Gatineau |
161.5 |
2.1 |
0.1 |
| Toronto and Oshawa |
140.0 |
2.4 |
0.4 |
| Hamilton |
148.8 |
6.1 |
0.4 |
| St. Catharines–Niagara |
149.6 |
4.2 |
-0.1 |
| Kitchener |
138.6 |
1.0 |
0.4 |
| London |
136.7 |
4.3 |
0.9 |
| Windsor |
103.8 |
-1.0 |
-0.2 |
| Greater Sudbury and Thunder Bay |
106.2 |
4.7 |
1.0 |
| Winnipeg |
153.1 |
6.5 |
0.7 |
| Regina |
185.0 |
21.6 |
4.0 |
| Saskatoon |
186.5 |
38.6 |
10.9 |
| Calgary |
247.2 |
22.0 |
0.9 |
| Edmonton |
229.4 |
37.0 |
2.6 |
| Vancouver |
121.0 |
8.8 |
2.3 |
| Victoria |
118.3 |
0.3 |
1.3 |
| Note: | View the census subdivisions that comprise the metropolitan areas online. |
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Investment in non-residential building construction Second quarter 2007
Heavy spending on office buildings in Alberta and Ontario pushed investment in non-residential building construction to another record high between April and June 2007.
Second-quarter investment hit $9.9 billion, up 5.0% from the first quarter, and extended the upward trend in investment observed since the second quarter of 2003.
In constant dollars, investment in non-residential building construction rose 2.1% from the first quarter.
Nationally, all three components registered second-quarter gains. Investment in the commercial component led the way with a 6.3% increase to $5.9 billion. Investment in the institutional component rose 2.4% to $2.6 billion, while investment in the industrial component increased 4.3% to $1.5 billion.
Provincially, by far the biggest second-quarter increase (in dollars) occurred in Alberta, where investment rose 11.1% to $2.3 billion, the 16th straight quarterly gain.
In Ontario, which was a distant second, investment increased 4.1% to $3.6 billion. In both provinces, investment rose in all three components.
Western Canada's dynamic economy continued to spark the non-residential sector. Other contributing factors included a strong labour market, high profits recorded by Canadian corporations, strong consumer demand for durable goods and declining vacancy rates in large urban centres.
Locally, 18 of the 34 census metropolitan areas (CMAs) recorded gains; the strongest was in Calgary where investment rose 17.2% to $1.1 billion. In contrast, investment in Halifax fell sharply as a result of a big decline in all three components.
| Investment in non-residential building construction, by census metropolitan area1 |
| |
Second quarter 2006 |
First quarter 2007 |
Second quarter 2007 |
First quarter to second quarter 2007 |
| |
Seasonally adjusted |
| |
$ millions |
% change |
| St. John's |
44 |
44 |
47 |
6.1 |
| Halifax |
116 |
123 |
98 |
-20.5 |
| Moncton |
14 |
51 |
45 |
-11.7 |
| Saint John |
25 |
27 |
33 |
22.8 |
| Saguenay |
27 |
37 |
31 |
-16.8 |
| Québec |
176 |
184 |
189 |
3.0 |
| Sherbrooke |
39 |
43 |
43 |
1.2 |
| Trois-Rivières |
29 |
39 |
44 |
12.0 |
| Montréal |
732 |
766 |
816 |
6.5 |
| Ottawa–Gatineau, Ontario/Quebec |
425 |
421 |
433 |
2.9 |
| Ottawa–Gatineau (Que. part) |
56 |
43 |
43 |
0.8 |
| Ottawa–Gatineau (Ont. part) |
369 |
378 |
390 |
3.1 |
| Kingston |
26 |
46 |
50 |
10.7 |
| Peterborough |
11 |
16 |
14 |
-15.4 |
| Oshawa |
100 |
100 |
96 |
-3.5 |
| Toronto |
1,615 |
1,507 |
1,594 |
5.8 |
| Hamilton |
173 |
147 |
135 |
-7.6 |
| St. Catharines–Niagara |
74 |
77 |
72 |
-6.4 |
| Kitchener |
134 |
138 |
134 |
-2.3 |
| Brantford |
9 |
40 |
40 |
-0.3 |
| Guelph |
22 |
53 |
51 |
-3.7 |
| London |
118 |
111 |
120 |
8.0 |
| Windsor |
93 |
88 |
90 |
2.0 |
| Barrie |
24 |
70 |
61 |
-12.8 |
| Greater Sudbury |
29 |
45 |
59 |
30.0 |
| Thunder Bay |
38 |
24 |
25 |
2.4 |
| Winnipeg |
178 |
177 |
164 |
-7.3 |
| Regina |
60 |
63 |
60 |
-4.5 |
| Saskatoon |
92 |
104 |
101 |
-2.6 |
| Calgary |
589 |
978 |
1,146 |
17.2 |
| Edmonton |
410 |
429 |
459 |
7.2 |
| Kelowna |
19 |
47 |
50 |
6.5 |
| Abbotsford |
68 |
86 |
73 |
-15.5 |
| Vancouver |
716 |
797 |
849 |
6.5 |
| Victoria |
95 |
108 |
105 |
-2.6 |
| 1. | Go online to view the census subdivisions that comprise the census metropolitan areas. |
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Commercial: Robust office activity in Alberta and Ontario
Investment in commercial building construction increased for the 18th quarter in a row, in the wake of robust activity in office building construction sites in Alberta and Ontario.
Overall, eight provinces showed increases in commercial investment in the second quarter. The largest contributions (in dollars) occurred in Alberta, where investment rose 15.0% to $1.5 billion, and in Ontario, where it increased 3.5% to $2.1 billion. Both were all-time highs.
Among the 34 CMAs, 18 registered quarterly growth. Investment in Calgary increased 19.9%, the strongest investment growth, to a new record high of $806 million. In Nova Scotia, which experienced the largest decline, investment hit $80 million, down 14.1% after four consecutive quarterly gains.
Several economic factors were consistent with a fertile environment for the commercial sector. These included the vigorous retail sector and declining vacancy rates for office buildings in major Canadian urban centres, which provided added incentive for office building construction.
Institutional: Gains in health care facilities push investment to new record
Spending in the institutional component rebounded to a record high after two quarterly declines. Strong investments in health care facilities in eight provinces contributed to this gain.
At the provincial level, increases of 8.3% in Québec and 7.2% in Alberta contributed to the component's growth in the second quarter, the result of significant spending on the construction of health and day care facilities.
British Columbia recorded the most significant decline in dollars (-3.6% to $437 million), in the wake of a downturn in investment in health care facilities following a record high set in the previous quarter.
Among metropolitan areas, Calgary posted the highest growth in the second quarter, with investment rising 11.8% to $273 million. The gain was driven by substantial investments in health care facilities.
After a record high in the first quarter, Vancouver registered the most significant decline in dollars (-7.2%), with second-quarter institutional building investment falling to $201 million. Vancouver recorded a big drop in the construction of educational and health care facilities.
Of the 34 census metropolitan areas, 20 posted increases.
Industrial: Gains in manufacturing and utilities buildings
Strong spending on the construction of manufacturing plants and utilities buildings in nine provinces and two territories more than offset drops in the other industrial categories.
Investment in industrial building construction increased for the second straight quarter to $1.5 billion, up 4.3% from the first quarter.
Provincially, the largest contributions to the quarterly increase (in dollars) occurred in Ontario, where investment rose 10.2% to $540 million, and in British Columbia, where it was up 18.1% to $147 million.
Saskatchewan posted the largest decline as investment in maintenance buildings declined, after high spending in previous quarters.
Locally, 18 of the 34 CMAs recorded gains. The strongest (in dollars) was in Toronto, where investment rose 14.7% to $185 million, followed by Montréal, where it increased 18.4% to $129 million. The sharpest drop (-38.3%) occurred in Barrie, which had posted record investments in the first quarter.
In the second quarter, manufacturers continued to face increased production costs, stronger global competition and the appreciation of the Canadian dollar. On the other hand, the industrial capacity utilization rate among Canadian industries slightly increased in the first quarter of 2007.
According to the April 2007 Business Conditions Survey, manufacturers remained optimistic in their production outlooks as they planned to increase production in the second quarter.
| Investment in non-residential building construction |
| |
Second quarter 2006 |
First quarter 2007 |
Second quarter 2007 |
First quarter to second quarter 2007 |
| |
Seasonally adjusted |
| |
$ millions |
% change |
| Canada |
8,929 |
9,470 |
9,939 |
5.0 |
| Newfoundland and Labrador |
64 |
64 |
71 |
9.7 |
| Prince Edward Island |
41 |
30 |
31 |
3.2 |
| Nova Scotia |
218 |
208 |
186 |
-10.7 |
| New Brunswick |
162 |
151 |
152 |
0.6 |
| Quebec |
1,476 |
1,516 |
1,582 |
4.3 |
| Ontario |
3,585 |
3,453 |
3,595 |
4.1 |
| Manitoba |
242 |
245 |
242 |
-1.0 |
| Saskatchewan |
216 |
245 |
234 |
-4.5 |
| Alberta |
1,607 |
2,084 |
2,316 |
11.1 |
| British Columbia |
1,297 |
1,441 |
1,500 |
4.1 |
| Yukon |
12 |
19 |
18 |
-7.5 |
| Northwest Territories |
7 |
8 |
8 |
1.0 |
| Nunavut |
1 |
5 |
5 |
-6.2 |
Note to readers
Unless otherwise stated, this release presents seasonally adjusted data, which ease comparisons by removing the effects of seasonal variations.
Investments in non-residential building construction exclude engineering construction. This series is based on the Building Permits Survey of municipalities, which collects information on construction intentions.
Work put-in-place patterns are assigned to each type of structure (industrial, commercial and institutional). These work patterns are used to distribute the value of building permits according to project length. Work put-in-place patterns differ according to the value of the construction project; a project worth several million dollars will usually take longer to complete than will a project of a few hundred thousand dollars.
Additional data from the capital and repair expenditures surveys are used to create this investment series. Investment in non-residential building data is benchmarked to the National Income and Expenditure Accounts of non-residential building investment series.
For the purpose of this release, the census metropolitan area of Ottawa–Gatineau is divided into two areas: Ottawa–Gatineau (Quebec part) and Ottawa–Gatineau (Ontario part).
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KITCHENER SINGLE-DETACHED NEW CONSTRUCTION NUMBERS CONTINUE WEAK IN JUNE
TORONTO - The Canada Mortgage and Housing Corporation (CMHC) released Kitchener’s preliminary housing starts data for the month of June today. Construction began on a total of 234 homes in the Kitchener Census Metropolitan Area (CMA), a decrease of 28 per cent from the 323 units started in the same month last year. Multiple-family home starts were stronger in June, but single-detached starts pulled total numbers lower. At 132 units, multiple-family home starts (which include semi-detached homes, townhouses and apartments) were up 25 per cent from the 106 units started in June 2006. A total of 102 single-detached foundations were poured in June, a drop of 53 per cent from the same month last year, continuing the trend of monthly year-over-year declines. Housing starts for the first half of 2007 were down six percent from the same period of 2006. The strength in the multiple-family sector offset a 50 per cent drop in single-detached construction.
“A low supply of residential lots available for building single-detached homes and the relatively higher cost of these homes have pushed first half single-detached starts to the lowest level in more than ten years,” said Erica McLerie, Market Analyst for the Kitchener CMA. “The move to higher density construction has benefited multiple-family home starts this year. Rental apartment construction has more than tripled,” added McLerie.
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MULTIPLES PULL ONTARIO HOME STARTS LOWER IN JUNE
Toronto - Ontario home starts moved lower in June. The Seasonally Adjusted Annual Rate (SAAR) of urban* starts dipped to 56,400 units, down from 70,000 unit starts registered in May. The volatile multi-family home segment pulled starts lower in June, particularly in the Toronto area. Despite a moderation in starts, the all important single detached segment has remained stable in recent months highlighting the resilience of the housing market generally.
The longer term trend for Ontario housing starts has been one of high starts levels, gradually edging lower. For example, while actual urban Ontario home starts for the year are 16 per cent lower compared to 2006, home starts are expected to remain above recent historical averages.
“Construction of multi-family homes, particularly apartments, is volatile on a monthly basis due to a host of factors which include – the volume of units currently under construction, housing completions and labor and material constraints. As strong condominium sales begin to translate into starts, Ontario construction activity is expected to run above trend,” said Ted Tsiakopoulos, CMHC`s Ontario regional economist. “Recent tightening in Ontario resale markets combined with strong consumer confidence will support new construction activity in the back half of 2007,” added Tsiakopoulos.
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Housing starts decrease in Canada in June 2007
OTTAWA - The seasonally adjusted annual rate(1) of housing starts was 225,500 units in June, down from 235,200 units in May, according to Canada Mortgage and Housing Corporation (CMHC).
"Following a significant increase in May, the volatile multiple segment
lost most of the ground it gained in June," said Bob Dugan, Chief Economist at
CMHC's Market Analysis Centre. "Although housing starts will remain high in
2007, they are expected to resume a gradual decreasing trend. This is
confirmed by the single detached component, which is slightly below the levels
of the last two years."
The seasonally adjusted annual rate of urban starts decreased
4.8 per cent to 192,600 in June compared to May. Urban singles were up
2.1 per cent to 92,200 units in June, while multiple starts decreased 10.4 per
cent to 100,400 units.
In June, seasonally adjusted urban starts went up in three out of five
regions. Urban starts registered an increase of 12.8 per cent in Quebec,
6.8 per cent in the Atlantic, and 3 per cent in British Columbia, while they
decreased by 5.8 per cent in the Prairies and 19.4 per cent in Ontario. Urban
single starts were up in all regions. Urban multiple starts declined only in
the Prairies and Ontario, by 15.2 per cent and 35.8 per cent, respectively.
These decreases offset the significant increase in urban multiple starts of
18.6 per cent registered in Quebec.
Rural starts were estimated at a seasonally adjusted annual rate of
32,900 units in June.
Actual starts, in rural and urban areas combined, were down an estimated
3.8 per cent in the first half of 2007 compared to the same period in 2006.
Actual starts in urban areas alone were down an estimated 4.7 per cent. Actual
single starts in urban areas were 7.5 per cent lower than they were a year
earlier, while actual urban multiple starts edged down 2.1 per cent.
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Reid's Heritage Homes Recognized for Healthy Housing(TM) Practices
GUELPH - Canada Mortgage and Housing Corporation (CMHC) recognized Reid's Heritage Homes today for building healthier houses. The presentation was made at the company's model home in Guelph's Westminster Woods community.
"CMHC is pleased to recognize Reid's Heritage Homes for dedication to
building healthier housing," said Bill Crawford, CMHC Senior Advisor, Research
and Technology. "Reid's Heritage Homes has demonstrated the skills and
knowledge necessary to build houses that are not only healthier for their
customers but also healthier for the environment."
Reid's Heritage Homes' Webster model, on lot 30 of Westminster Woods, is
designed to reduce water and energy consumption. A rainwater collection system
with a buried 10,000-gallon cistern pumps rainwater into the home's toilets,
dishwasher and washing machine. Geothermal loops dug into the ground and solar
panels on the roof provide heating and cooling. The home also features
healthier materials for improved indoor air quality including soy-based foam
insulation in the garage, low-emission, recycled paint on all the walls, and
finished floors that are made of durable slate and fast growing bamboo.
The home is the first low-rise residential house in Canada to be
certified Leadership in Energy & Environmental Design (LEED) Platinum. LEED is
an internationally recognized standard that promotes the design and
construction of high-performance green homes.
"The opening of the first ever LEED Certified Platinum home in Canada
that has achieved the highest LEED for Homes (LEED-H) point rating to date in
North America is a huge milestone for Reid's Heritage Homes," said Ron
Salisbury, Manager - Home Performance, Reid's Heritage Homes. "We are
extremely excited to receive this award from CMHC as recognition for our
efforts in elevating healthy housing to a new level, not only locally but on a
continental scale."
Reid's Heritage Homes is based in Cambridge, Ontario and builds
award-winning communities across Southwestern Ontario. For more information on
their "Simple.Healthy.Sustainable." building philosophy, look for the green
leaf at ReidsHeritageHomes.com or call 1-877-88-REIDS.
CMHC Healthy Housing(TM) Recognition honours builders and others who put
their knowledge of CMHC's five Healthy Housing(TM) principles into practice.
These five principles include: occupant health, energy efficiency, resource
efficiency, environmental responsibility, and affordability.
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Building permits for May 2007
Stascan - Construction sites in Western Canada will be humming this summer as the value of building permits, a leading indicator for construction activity, surged to its highest monthly level ever in May.
Municipalities issued a total of $6.8 billion worth of permits, up 21.4% from April and 8.5% higher than the previous high set in October 2006. More than 15% of the total value in May came from only 15 large projects.
The Calgary and Vancouver metropolitan areas were responsible for nearly 75% of the overall gain (in dollars) in May. Excluding these two areas, the total value of permits would have increased by only 7.0% instead of 21.4%.
Gains in these two metropolitan areas pushed the total value of permits in Alberta and British Columbia to record highs. There was also strong growth in Manitoba, Saskatchewan and New Brunswick, thanks largely to construction intentions in the non-residential sector.
Non-residential permits surpassed the $3-billion mark for the first time in the wake of a big increase in commercial projects. Contractors took out a record $3.1 billion in permits for proposed construction projects, up 55.7% from April. This level was 18.5% higher than the previous record of $2.6 billion set in January.
On the residential side, municipalities issued $3.7 billion in permits, a 2.4% increase from April. The value of single-family permits increased, while multi-family permits slipped marginally.
Non-residential sector: Strong demand for new commercial space
The commercial component accounted for the lion's share of gains in the non-residential sector in May. Contractors took out permits worth a record $2.1 billion, a 59.2% increase from April.
This was by far the largest monthly figure on record for the commercial component, surpassing the previous record high of $1.6 billion set in October 2006. Several large projects for new office space in the Calgary and Vancouver areas accounted for the increase.
The dynamic commercial component (the largest of the three non-residential components) has been on an upward trend since October 2005. Furthermore, the average monthly value of commercial permits issued since the beginning of 2007 was 21.2% higher than in 2006.
In the institutional component, permits rebounded in May from a 26-month low in April. The value of institutional projects increased 76.6% to $616 million, the second highest level so far in 2007. Only the level in January was higher than the one reached in May.
School projects were the main factor behind the gain. Only two provinces – Newfoundland and Labrador and Alberta – recorded a decline in this component. The largest gains (in dollars) were in Ontario and British Columbia.
On the industrial side, the value of permits surged 21.3% in May to $419 million after a 19.4% decline in April. While eight provinces showed a gain in May, the increase was due mainly to construction projects for manufacturing plants in Ontario.
The value of industrial permits has been on a downward trend since the end of 2006.
The buoyant construction intentions in the non-residential sector since the beginning of 2007 are consistent with low office vacancy rates in several large centres, high profits recorded by Canadian corporations and a vigorous retail sector.
Housing sector: Slight decline in the value of multi-family building permits
The value of multi-family permits edged down 0.6% to roughly $1.4 billion in May. After an impressive gain in April, the number of units approved by municipalities fell 18.3% to 9,359.
This came from a marked increase in the average value of multi-family permits.
Builders took out $2.3 billion in single-family permits, boosting their value by 4.3% over April to its highest level in four months. The number of approved units increased 2.8% to 9,481. Nevertheless, the increase failed to halt the downward trend in the number of single-family units that dates back to September 2006.
The demand for housing continues to remain strong owing to several factors, including strong employment, rises in disposable income, strong immigration and attractive financing options. Recent increases in mortgage rates and prices could, however, erode affordability.
The value of residential permits increased in seven provinces.
The strongest growth (in dollars) in the value of residential permits occurred in British Columbia, thanks mostly to a jump in multi-family permits. The value of housing permits hit $905 million, up 30.9% from April and the highest level on record for the province. Quebec also recorded a sizeable increase.
In contrast, the value of residential permits in Alberta fell 21.9% from a record level in April, resulting in the second weakest showing in 11 months for residential permits in the province.
Metropolitan areas: Calgary and Vancouver dominate the scene
Among the 34 metropolitan areas, 20 recorded gains in residential permits, while 26 saw the value of their non-residential permits rise.
The demand for office space in downtown Calgary led this census metropolitan area to record a 160.6% jump in May, surpassing the $1-billion mark for the first time. Of this total, $856 million in intentions were in non-residential permits, which was more than eight times the value in April.
While very small in comparison, other important gains in non-residential permits (in dollars) were recorded in Hamilton, Victoria and Winnipeg.
In the residential sector, Vancouver led the pack, with residential permit values increasing 54.9% to $585 million and total permit values reaching $803 million, up 38.0% over April.
Ottawa–Gatineau (Quebec part), Hamilton and Barrie saw appreciable gains (in dollars) in residential permit values, but were eclipsed by Vancouver's increase.
| Value of building permits, by census metropolitan area1 |
| |
April 2007r |
May 2007p |
April to May 2007 |
January to May 2006 |
January to May 2007 |
January–May 2006 to January–May 2007 |
| |
Seasonally adjusted |
| |
$ millions |
% change |
$ millions |
% change |
| St. John's |
24.8 |
28.8 |
15.9 |
129.1 |
125.9 |
-2.4 |
| Halifax |
97.5 |
42.7 |
-56.2 |
259.7 |
221.1 |
-14.9 |
| Moncton |
23.8 |
31.5 |
32.3 |
84.1 |
93.5 |
11.2 |
| Saint John |
23.0 |
19.9 |
-13.5 |
69.7 |
115.9 |
66.4 |
| Saguenay |
15.0 |
26.1 |
73.7 |
64.1 |
61.7 |
-3.8 |
| Québec |
97.4 |
110.9 |
13.8 |
477.4 |
551.8 |
15.6 |
| Sherbrooke |
35.1 |
22.7 |
-35.3 |
161.4 |
120.2 |
-25.5 |
| Trois-Rivières |
22.2 |
37.7 |
69.9 |
85.9 |
113.7 |
32.3 |
| Montréal |
535.4 |
534.7 |
-0.1 |
2,368.6 |
2,563.7 |
8.2 |
| Ottawa–Gatineau, Ontario/Quebec |
175.3 |
198.9 |
13.4 |
896.3 |
1,066.1 |
18.9 |
| Ottawa–Gatineau (Que. part) |
42.1 |
68.4 |
62.5 |
190.7 |
243.8 |
27.9 |
| Ottawa–Gatineau (Ont. part) |
133.2 |
130.5 |
-2.1 |
705.7 |
822.3 |
16.5 |
| Kingston |
12.8 |
17.3 |
34.9 |
91.8 |
81.6 |
-11.1 |
| Peterborough |
11.2 |
12.1 |
8.6 |
62.8 |
40.0 |
-36.2 |
| Oshawa |
66.0 |
63.3 |
-4.0 |
343.0 |
304.8 |
-11.1 |
| Toronto |
932.6 |
935.1 |
0.3 |
4,291.1 |
4,974.5 |
15.9 |
| Hamilton |
67.9 |
126.5 |
86.4 |
344.3 |
488.9 |
42.0 |
| St. Catharines–Niagara |
37.2 |
46.4 |
24.8 |
198.2 |
176.9 |
-10.7 |
| Kitchener |
61.5 |
62.9 |
2.2 |
424.2 |
309.6 |
-27.0 |
| Brantford |
22.6 |
22.2 |
-2.0 |
73.7 |
81.1 |
10.1 |
| Guelph |
24.4 |
30.7 |
25.7 |
131.8 |
122.9 |
-6.8 |
| London |
92.0 |
93.0 |
1.2 |
388.2 |
363.4 |
-6.4 |
| Windsor |
22.6 |
40.1 |
77.6 |
243.6 |
127.8 |
-47.5 |
| Barrie |
26.0 |
42.2 |
62.1 |
190.8 |
132.0 |
-30.8 |
| Greater Sudbury |
16.7 |
34.3 |
104.6 |
72.9 |
182.1 |
149.8 |
| Thunder Bay |
8.7 |
9.9 |
14.7 |
28.7 |
39.0 |
35.8 |
| Winnipeg |
58.4 |
82.8 |
41.7 |
347.3 |
372.4 |
7.2 |
| Regina |
15.5 |
30.5 |
97.1 |
115.0 |
114.2 |
-0.7 |
| Saskatoon |
44.7 |
60.2 |
34.7 |
182.3 |
250.0 |
37.1 |
| Calgary |
408.0 |
1,063.5 |
160.6 |
1,993.1 |
2,812.4 |
41.1 |
| Edmonton |
380.8 |
289.8 |
-23.9 |
1,272.8 |
1,633.6 |
28.3 |
| Kelowna |
56.2 |
72.3 |
28.7 |
230.1 |
334.8 |
45.5 |
| Abbotsford |
23.3 |
28.6 |
22.8 |
210.0 |
142.0 |
-32.4 |
| Vancouver |
581.8 |
803.1 |
38.0 |
2,331.4 |
3,008.3 |
29.0 |
| Victoria |
81.1 |
93.3 |
15.0 |
287.7 |
464.9 |
61.6 |
| r | revised |
| p | preliminary |
| 1. | Go online to view the census subdivisions that comprise the census metropolitan areas. |
| Note: | Data may not add up to totals as a result of rounding. |
|
| Value of building permits, by province and territory |
| |
April 2007r |
May 2007p |
April to May 2007 |
January to May 2006 |
January to May 2007 |
January–May 2006 to January–May 2007 |
| |
Seasonally adjusted |
| |
$ millions |
% change |
$ millions |
% change |
| Canada |
5,631.2 |
6,834.2 |
21.4 |
25,266.5 |
29,611.6 |
17.2 |
| Residential |
3,627.4 |
3,714.0 |
2.4 |
16,129.1 |
17,569.2 |
8.9 |
| Non-residential |
2,003.8 |
3,120.2 |
55.7 |
9,137.4 |
12,042.4 |
31.8 |
| Newfoundland and Labrador |
44.2 |
46.0 |
4.2 |
188.5 |
211.1 |
12.0 |
| Residential |
28.0 |
31.3 |
11.8 |
139.4 |
141.2 |
1.3 |
| Non-residential |
16.2 |
14.7 |
-8.9 |
49.1 |
70.0 |
42.5 |
| Prince Edward Island |
12.4 |
13.6 |
9.8 |
82.5 |
64.7 |
-21.6 |
| Residential |
8.0 |
10.2 |
28.3 |
50.7 |
49.7 |
-2.0 |
| Non-residential |
4.4 |
3.3 |
-23.9 |
31.8 |
15.0 |
-52.9 |
| Nova Scotia |
142.3 |
107.7 |
-24.3 |
515.3 |
472.8 |
-8.2 |
| Residential |
100.6 |
66.8 |
-33.6 |
373.5 |
326.2 |
-12.7 |
| Non-residential |
41.7 |
40.9 |
-1.9 |
141.8 |
146.6 |
3.3 |
| New Brunswick |
73.6 |
93.9 |
27.6 |
363.0 |
386.6 |
6.5 |
| Residential |
47.8 |
43.6 |
-8.8 |
219.2 |
198.4 |
-9.5 |
| Non-residential |
25.8 |
50.3 |
94.9 |
143.8 |
188.2 |
30.9 |
| Quebec |
1,027.9 |
1,118.4 |
8.8 |
4,592.1 |
5,057.0 |
10.1 |
| Residential |
647.3 |
694.9 |
7.4 |
3,055.7 |
3,252.4 |
6.4 |
| Non-residential |
380.6 |
423.5 |
11.3 |
1,536.3 |
1,804.5 |
17.5 |
| Ontario |
1,921.8 |
2,064.7 |
7.4 |
9,206.7 |
10,449.5 |
13.5 |
| Residential |
1,141.3 |
1,162.5 |
1.9 |
5,767.1 |
5,705.8 |
-1.1 |
| Non-residential |
780.5 |
902.2 |
15.6 |
3,439.6 |
4,743.8 |
37.9 |
| Manitoba |
108.2 |
150.8 |
39.4 |
537.3 |
624.5 |
16.2 |
| Residential |
68.0 |
79.5 |
16.8 |
338.1 |
386.9 |
14.4 |
| Non-residential |
40.1 |
71.3 |
77.6 |
199.2 |
237.7 |
19.3 |
| Saskatchewan |
95.2 |
118.9 |
24.9 |
414.7 |
527.3 |
27.2 |
| Residential |
54.9 |
65.7 |
19.6 |
177.8 |
320.2 |
80.1 |
| Non-residential |
40.3 |
53.3 |
32.2 |
236.9 |
207.1 |
-12.6 |
| Alberta |
1,208.7 |
1,783.2 |
47.5 |
4,944.0 |
6,449.2 |
30.4 |
| Residential |
831.2 |
649.1 |
-21.9 |
3,153.1 |
3,596.1 |
14.0 |
| Non-residential |
377.5 |
1,134.0 |
200.4 |
1,790.9 |
2,853.1 |
59.3 |
| British Columbia |
976.8 |
1,316.9 |
34.8 |
4,352.8 |
5,261.2 |
20.9 |
| Residential |
691.8 |
905.3 |
30.9 |
2,829.0 |
3,533.5 |
24.9 |
| Non-residential |
285.0 |
411.6 |
44.4 |
1,523.9 |
1,727.7 |
13.4 |
| Yukon |
6.0 |
9.7 |
61.3 |
51.9 |
39.4 |
-24.0 |
| Residential |
2.9 |
3.1 |
7.5 |
17.5 |
14.6 |
-16.5 |
| Non-residential |
3.1 |
6.5 |
112.7 |
34.4 |
24.8 |
-27.8 |
| Northwest Territories |
9.4 |
9.5 |
1.1 |
5.7 |
25.5 |
345.6 |
| Residential |
0.9 |
1.1 |
32.1 |
3.6 |
3.0 |
-18.7 |
| Non-residential |
8.6 |
8.4 |
-2.0 |
2.1 |
22.5 |
980.7 |
| Nunavut |
4.8 |
1.0 |
-78.5 |
11.9 |
42.8 |
260.1 |
| Residential |
4.7 |
0.9 |
-80.5 |
4.3 |
41.2 |
866.8 |
| Non-residential |
0.1 |
0.1 |
20.0 |
7.6 |
1.6 |
-79.6 |
| r | revised |
| p | preliminary |
| Note: | Data may not add up 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).
|
Canada's housing market forecast to perform strong and steady through 2007, with astounding momentum from solid second quarter
- Average house prices set to rise by 9.5 per cent nationally -
TORONTO - Canada's resale housing market finished the second quarter on strong and steady footing; surprising many by its astounding momentum. Healthy and robust conditions are expected to prevail through to year's end as all regions are poised to experience a rise in average house prices, with double-digit gains forecast for Edmonton, Calgary, Winnipeg and Regina, according to a report released today by Royal LePage Real Estate Services.
Echoing the growth and activity experienced in all Canadian markets in
the first half of the year, the national average house price is forecast to
rise by 9.5 per cent, passing the $300,000 mark for the first time, to
$303,300. Home sale transactions are projected to rise by 8 per cent to
522,306 unit sales by the end of 2007.
"The momentum from the year's extraordinary start spilled into the second
quarter, compounding typically busy spring market activity and stimulating
solid price appreciations in almost all regions of the country. These
conditions will certainly be an impetus characterizing Canada's real estate
market through to year's end," said Phil Soper, president and chief executive
officer, Royal LePage Real Estate Services. "As we move into the second half
of the year, we continue to expect areas of aggressive price appreciation in
the west, and modest, mid-single digit price increases in Central and Atlantic
Canada."
Added Soper: "The most profound story in Canadian real estate today is
the extraordinary interest that people across our country continue to have in
buying and selling homes. The sheer number of homes trading hands this year
has far exceeded consensus expectation. This market continues to show strength
as we move into the second half of the year."
New to the stage of regional players exhibiting extreme home sales
activity and searing house price increases is Saskatchewan. Record numbers of
homes sold in both Regina and Saskatoon in the second quarter as intense
demand was driven by a swell of in-migration of Saskatchewanians returning
from expensive Alberta living. These frenetic conditions are expected to
continue, albeit at a slightly more temperate pace.
Energy rich Alberta's potent economy continued to attract in-migration;
however, the runaway prices and activity that have characterized Calgary and
Edmonton for the past eighteen months have started to ease and will continue
to return to more manageable conditions as the year presses onwards. Most
notable during the second quarter was the change in Calgary's inventory
levels, which increased substantially as some sellers decided to cash in on
their home equity. This increased supply, combined with the natural dampening
effect that high prices have on demand, is leading to more balanced conditions
and a stabilizing of average price appreciations.
Looking ahead, Central Canada should continue to enjoy balanced market
conditions. More modest increases can be expected as we move into the
traditionally slower second half of the year. The combination of healthy
regional economies and job markets, population growth and the recognition that
real estate is a sound investment, will continue to attract buyers and bolster
demand for housing.
In Toronto, an unseasonable spike in activity may occur in the fall as
some buyers react to the city-proposed increase in land transfer taxes for the
area, jumping into the market before the proposed taxes are to go into effect.
Anticipated growth of the oil sector in St. John's, Saint John and
Fredericton is expected to create an abundance of jobs in Atlantic Canada and
maintain the buoyancy of the eastern market, compensating for the significant
loss of trades people who have flocked to Alberta.
"During the first half of the year, strong economic fundamentals fuelled
consumer confidence and reasonable affordability drove housing demand across
the country. In most provinces, inventory levels were up slightly
year-over-year, helping to balance the national market," commented Soper.
Of the housing types surveyed, the highest average price appreciation
occurred in detached bungalows, which rose by 15.4 per cent to $338,738,
followed by standard two-storey properties, which rose to $399,469 (13.2%),
and standard condominiums, which increased to $238,784 (15.1%),
year-over-year.
<<
REGIONAL MARKET SUMMARIES
>>
The housing market in Halifax maintained its strength during the second
quarter and is expected to remain healthy through the remainder of the year.
First-time buyers drove much of the quarter's market activity, with properties
priced under $300,000 in greatest demand.
The housing market in Moncton experienced strong sales activity during
the second quarter, while a decrease in listings helped push the market in the
seller's favour. Affordability remains good in Moncton as the city offers the
most affordable real estate in the province. The market is expected to remain
strong for the rest of the year with prices increasing slightly and sales
activity continuing to flourish.
Saint John's robust economy and high consumer confidence helped fuel real
estate activity prompting average price increases during the second quarter.
Saint John is gradually becoming the energy hub of the east coast as a new oil
refinery has been built and projects, such as the refitting of the nuclear
generating plant are slated for the near future.
In Charlottetown, the housing market experienced a strong start to the
second quarter and began to moderate towards the quarter's end, resulting in
modest average price increases. Contributing to the slight decrease in
activity during the quarter was the provincial election, which resulted in a
new government. The three year freeze on assessments that the new government
is imposing should also help the market conditions.
Activity in St. John's remained stable and average house prices increased
during the second quarter, as the city began to experience a shortage in
inventory. A strong economy and high consumer confidence were supported by the
recent excitement that the long awaited local oil project Hebron Ben Nevis is
on again. Affordability is good and there is nothing to indicate anything but
a healthy market going forward.
Pressuring prices upwards and maintaining buoyancy in the market, the
strong buyer demand in Montreal led the city to experience a stronger than
expected second quarter. With inventory levels slightly elevated from this
period last year, the market shifted to more balanced conditions from the
seller's conditions, which typified the market over the past few years.
Westmount remains a popular neighbourhood among young professionals and baby
boomers who are drawn to the cache of the established area. Due to various
sound fundamental underpinnings, Montreal is poised to enjoy a healthy housing
market through to year's end. High consumer confidence, robust demand and a
healthy economy will continue to help fuel demand and keep the market moving
at a strong pace.
Toronto's resale housing market experienced a strong second quarter,
characterized by record-breaking activity and rising average house prices.
Toronto's better than expected second quarter was defined by intense demand
that was only barely met by inventory levels. Multiple offer situations
occurred frequently on detached homes, resulting in decreased average listing
periods from this time last year. Looking ahead to the end of the year, the
housing market is expected to continue to enjoy strong, yet slightly slower
activity, accompanied by modest rates of price appreciation.
Ottawa maintained the title of Canada's most stable housing market due to
unwavering demand being met by a comparable level of inventory, resulting in
moderate average house appreciations. All purchaser groups were very active
during the second quarter, with many first-time homebuyers taking advantage of
relatively modest interest rates. Ottawa's housing market is poised to perform
as it has been throughout the second quarter: strong and steady, with average
house prices rising moderately, while the market remains balanced.
Winnipeg's housing market sizzled through the second quarter, and will
continue to do so for the remainder of the year. The recent Manitoba election
prompted increased government spending, particularly on infrastructure, which
has led to the creation of a strong job market and the rejuvenation of several
neighbourhoods, attracting an increase in buyers. The condominium market
remains a bright spot in Winnipeg as many first-time buyers and baby boomers
flock to the maintenance-free lifestyle this housing type offers. Despite new
condominiums coming on stream in 2007, fierce demand will hold a tight grip on
inventory levels.
Regina experienced a booming housing market, supported by the city's
extraordinary job market and diversified economy. Recent proactive media
campaigns in the western provinces promoting Regina as a great place to live
attracted many buyers to the city. New to Regina's housing landscape is the
rapid growth in the condominium market, which have become the favoured choice
of first-time buyers entering the market.
With the same fundamental conditions in tact as in Regina, market
activity in Saskatoon was frenetic during the second quarter; with even more
significant price appreciations recorded. Very limited supply, coupled with
fierce demand, drove prices up in all housing categories, with huge
appreciations in the condominium sector. The brisk activity and rising prices
have also had a ripple effect into neighbouring areas. The typically slower
market in Swift Currant has been invigorated by a spill over of buyers from
Saskatoon. Despite the rapid spike in average house prices, market activity
began to stabilize at the end of the second quarter and is expected to
continue at a slightly more temperate pace, yet still very strong, for the
remainder of the year.
In Calgary, sellers cashing in on home equity gains caused housing
inventory to rise, which led to more moderate price appreciations compared to
the steep appreciations and frenzied activity that occurred last year.
Multiple offer situations still occurred during the second quarter, but with
less frequency than in the past few months. Listing periods increased slightly
over last year with houses remaining on the market 35 per cent longer. While
Calgary's market is expected to remain strong and healthy throughout 2007, the
city is not expecting to experience the conditions that characterized the
market for much of 2006.
Edmonton's housing market enjoyed a robust second quarter with
significant double-digit price appreciations. For the majority of the second
quarter Edmonton experienced strong demand that outpaced supply, resulting in
an abundance of multiple offer situations. The condominium sector experienced
tremendous gains during the second quarter as a number of new projects came on
stream pressuring prices upwards; most notably, in Riverbend/Terwilliger the
price of a standard condominium reported average house price increases of
100 per cent. While house prices are forecast to stabilize during the next two
quarters, the housing market is poised to remain healthy and strong for the
remainder of the year.
Vancouver experienced a traditionally strong spring market achieving
record sales due to a steady increase in demand. The condominium sector
experienced busy activity during the second quarter as buyers increasingly
favoured the low-maintenance lifestyle that condominiums offer; however,
supply could not satisfy demand. Construction of new condominium projects is
limited as the city is approaching a build out, and reaching full building
capacity within the downtown peninsula, placing a cap on future inventory.
Strong consumer confidence, buoyed by economic prosperity in Vancouver is
expected to stimulate strong housing market activity for the remainder of the
year.
Victoria's housing market experienced a rise in average house prices
during the second quarter, due to the combination of a hot job market, high
consumer confidence and low inflation. Steady buyer demand was evident in all
housing types; however, condominiums received the most notable attention.
Although there has been an increase in inventory in the second quarter,
multiple offer situations continue to characterize Victoria's market, with
listing periods lasting an average of 30 days.
|
"Building Canada" - Stronger, Safer, Better - Canada's New Government Takes Final Steps on Historic $33 Billion Infrastructure Plan
OTTAWA - Canada's New Government is moving forward on its $33 billion "Building Canada" infrastructure plan. Over the summer, meetings and negotiations will take place with provinces and territories to conclude agreements on the new funding programs announced in Budget 2007.
"Our next step is to move the plan details to provinces, territories and
the municipal sector and enter into discussions, so that we can implement the
new infrastructure plan and invest where it's most needed in the country,"
said the Honourable Lawrence Cannon, Minister of Transport, Infrastructure and
Communities. "Today, I can say that we are on target and beginning discussions
with a view to conclude agreements with provinces and territories as quickly
as possible."
Worth $33 billion between 2007 and 2014, "Building Canada" provides more
funding for provincial, territorial and municipal infrastructure, and for a
longer period of time than any federal government since World War II. It
includes base funding of $17 billion for municipalities, such as the Gas Tax
Fund, which has been extended to 2014 and will be delivered at $2 billion a
year starting in 2010. It also includes the 100 per cent GST rebate
municipalities will continue to receive.
The discussions that are starting now will focus on the parameters of the
programs, including eligible recipients and project selection criteria:
<<
- Investments in the core National Highway System, public transit, clean
water and sewage treatment infrastructure, green energy, among other
categories, through the $8.8 billion Building Canada Fund, that will
help support large strategic projects as well as smaller-scale
municipal projects;
- Base funding of $25 million a year equal per jurisdiction that will
help provinces and territories address infrastructure priorities; and
- Investments of $2.1 billion through the Gateways and Border Crossings
Fund that will improve the flow of goods between Canada and the rest of
the world. This merit-based fund will help enhance infrastructure at
key locations, such as major border crossings between Canada and the
United States, and the Atlantic gateway. Four hundred million dollars
from this fund is dedicated to the construction of the access road
between Highway 401 and the new Windsor-Detroit border crossing.
>>
"'Building Canada' will focus on projects of national importance for a
stronger, safer and healthier country, such as initiatives for cleaner air and
water, a stronger economy through modern infrastructure and a better quality
of life for our communities," added the Minister. "It also demonstrates how
Canada's New Government's strong partnership approach with provinces,
territories and municipalities delivers real results for Canadians."
To this end, the Government of Canada will also be discussing how all
governments will demonstrate accountability to Canadians and identify
infrastructure priorities in areas of importance to Canadians and how
innovative funding solutions, such as public-private partnerships can be
explored to fund projects. These discussions are the continuation of a
collaborative, flexible and predictable approach to long-term infrastructure
planning.
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K-W HOME SALES UP MORE THAN 14 PERCENT THIS YEAR
KITCHENER - Residential real estate sales continued their record pace in June, leading to a year-to-date increase of 14.6 percent.
The Kitchener-Waterloo Real Estate Board has recorded a total of 3,751 sales of homes in
Kitchener-Waterloo and area through the Multiple Listing Service® to the end of June,
compared with 3,273 sales for the same period one year ago.
This strong sales performance translates into more than $900 million in residential properties
sold during the first six months of 2007, a 20.5 percent increase.
Homes selling for $400,000 to $500,000 saw the most significant jump in activity during the first
half of the year, increasing 61 percent to 161 sales. Strong sales were recorded across virtually
all price ranges above $200,000, most increasing more than 25. The single exception was homes
selling for more than $1 million; there were only two such properties sold to the end of June,
down from five sales during the same period one year ago.
While sales remained on a record-setting trajectory throughout the first half of the year, the
average sale price remained relatively stable, increasing just 5.2 percent to $246,428. The
average price of a single family detached home sold between January and June was $280,690,
a 4.3 percent increase.
The median sale price of all residential properties also increased 5.1 percent to the end of June,
to $227,000. Single family detached homes increased an average of 4.7 percent to $254,472.
According to the president of the Kitchener-Waterloo Real Estate Board, first half results point
to strong consumer demand driven in large part by the inherent value of residential real estate
ownership in the Region.
In June alone, there were 752 home sales, the third consecutive month that sales surpassed the
700 mark. June represents the second highest month in the history of the Board, exceeded only
by last month's 779 home sales.
The pace of sales is exerting pressure on the supply of homes for sale in Kitchener-Waterloo and
area. Active listings decreased 9.3 percent on a year-over-year basis. However, to the end of
June, the number of listings processed increased 5.5 percent relative to the same period in 2006.
There have been a total of 5,678 new residential listings processed during the first six months
of the year.
While sales continue at a record pace, some key market indicators remain remarkably stable,
according to the president of the Kitchener-Waterloo Real Estate Board:
• the time between a home being listed and its sale has remained at 49 days, despite strong
consumer demand; and,
• the sale price relative to the list price has also remained consistent despite exceptionally
strong sales.
"These market indicators demonstrate a high degree of market stability, considering the ongoing
consumer demand," says Tania Benninger. "Prospective buyers can take comfort that,
notwithstanding record sales, the local real estate market reflects strong stability and only
marginal increases in the average sale price."
Ms. Benninger says the residential property sales to date this year point to the value of working
with a professional REALTOR® to ensure prospective buyers make the best real estate
decisions.
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Construction starts on berm and new waterfront park
Major milestone in development of first new waterfront neighbourhood
TORONTO - Federal Environment Minister John Baird, Ontario
Minister of Public Infrastructure Renewal David Caplan and Toronto Mayor David
Miller today launched the start of construction of both a flood protection
berm and the Don River Park in the West Don Lands, the first new community to
be developed as part of waterfront revitalization.
"The revitalization of the West Don Lands will transform an underused
industrial area into a vibrant new sustainable community for Torontonians,"
said the Honourable John Baird, Minister of the Environment. "The health of
our cities and communities is critical to our country's ongoing success. That
is why Canada's New Government is providing $17.6 million to fully fund the
construction of the Don River Park. We are committed to working with other
levels of government to renew Toronto's waterfront and ensure a high quality
of life for residents and visitors alike."
Don River Park will be an active, vibrant and inviting neighbourhood park
serving the community, the City and visitors alike. Don River Park will
provide a rich and diverse offering of landscape experiences. It will
transform an abandoned and contaminated post-industrial site into a dynamic,
re-natured public park that is animated year-round. It will invite the city to
the Don River and enhance the experience along the river's edge.
Waterfront Toronto in partnership with the Ontario Realty Corporation is
overseeing the construction of the six-hectare berm. The berm is a key
requirement for developing the West Don Lands which are located in the flood
plain of the Don River. The berm will provide flood protection for a
174 hectare area that extends west to York Street, including Toronto's
financial district. Don River Park, a signature piece of the new West Don
Lands community, will be built on top of the berm.
"The waterfront's future really begins today - as we begin the process of
transforming the provincially owned West Don Lands into a new community that
will one day rival London's Canary Wharf or New York's Battery Park," said
Caplan. "The long awaited berm construction is the critical step to making the
West Don Lands, one of Canada's first complete and sustainable communities."
Approximately 200,000 cubic metres of fill will be used to construct the
low-lying berm. This is the equivalent to the load carried by 10,000 dump
trucks. At its high point, the berm will be four metres high. The berm is
scheduled to be complete in 2008 after which final landscaping for Don River
Park will take place. The park will be open in 2009. The cost of constructing
the berm is $25 million. Don River Park will cost $15 million.
"This berm is vital to the transformation of the West Don Lands into the
dynamic community Torontonians have long been looking for in the vicinity of
their downtown waterfront," said Mayor David Miller. "It will be an affordable
and accessible community that will attract a wide variety of families and
residents from diverse economic backgrounds who want to live, work and play in
a clean, green urban environment."
Starting construction of the berm and Don River Park is part of a number
of development activities now underway in the West Don Lands. On June 18,
2007, Waterfront Toronto issued a Request for Qualifications for the
development of 850 units of residential housing in the West Don Lands. And,
Toronto Community Housing, Waterfront Toronto's affordable housing partner for
the first phase of West Don Lands development, will start construction of
130 units of affordable rental housing in the fall of 2007.
"Today represents a major milestone for revitalization of Toronto's
waterfront," said Mark Wilson, Waterfront Toronto's chair. "Building this berm
has been one of the biggest barriers to transforming this area into a new
vibrant neighbourhood. Today we officially overcome that barrier and start the
major construction of the first new waterfront community."
In addition to the berm, flood protection is also being provided by
widening the channel of the Don River so that it can accommodate a larger flow
of water. Toronto and Region Conservation (TRCA) is carrying out this work.
Widening the river channel requires extending the railway bridge that spans
the channel. This bridge work will be complete in July along with a new
pedestrian underpass that links the new West Don Lands community to the
existing Don River and waterfront trails. The underpass will open in 2009 when
Don River Park is complete.
The West Don Lands, made up of 32 hectares next to the Distillery
District, run from Parliament Street east to the Don River and from King
Street south to the rail corridor. Waterfront Toronto has made community
consultation an integral part of the design and development of the West Don
Lands.
"In 1999 our community identified flood protection as the single biggest
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