OneRoof’s latest report sheds light on the state of Rotorua’s property market. Photo / Andrew Warner
Properties across all but one Rotorua suburb have increased in average value over the past three months as realtors express optimism for homebuyers and sellers for 2024.
The value increases in the three months to October 31 range from 2.6 per cent to 5.8 per cent, according to OneRoof’s latest report released today.
The highest lift was in Mangakakahi, where average property values have risen by 5.8 per cent. Koutu and Kawaha Point each have increases of more than 5 per cent in the past quarter as summer interest in lakeside properties rises.
Only Hamurana recorded a drop – 1.2 per cent over the three months.
All suburbs are up compared to pre-Covid-19, ranging from 5.7 per cent in Koutu to 28.1 per cent in Sunnybrook.
However, average property values in all suburbs are down year-on-year. Rotorua’s most expensive suburb, Humarana, plummeted by more than 10 per cent.
The OneRoof Property Report, with data partner Valocity, shows the average Rotorua property is valued at $743,000, a drop of 2.5 per cent compared to a year ago.
In Hamurana, where the average value is reported at just over $1.2 million, property values have fallen by 10.5 per cent in the year.
According to OneRoof’s report, Rotorua’s cheapest suburbs have also shown a year-on-year drop in average property value. The biggest change was in Victoria where the value fell by 6.1 per cent to $522,000.
House prices across Rotorua are, however, still 20.7 per cent higher on average than they were before the pandemic.
OneRoof’s report states the average Rotorua property value pre-Covid was $615,000.
One highlight was a property in Rotoiti Forest that sold for $3.435 million in February this year.
Rotorua real estate professionals are now optimistic about the trends to come.
Tremains central region general manager Stuart Christensen said the beginning of this year did not show good market trends and going into winter “had its challenges”.
“Coming out of winter and into spring we’ve seen a lift,” Christensen told the Rotorua Daily Post.
“More buyers have come into the market, which has caused some competition.”
Christensen said Tremains had seen positive trends in the past three months.
“There’s no doubt about it. [For] 2024 there’s a positivity we’re hearing from buyers and future sellers alike. It feels like 2024 is going to be a better year.”
Christensen did not anticipate the market would “go crazy”.
“But we’re past the bottom of the market,” Christensen said. “If people were waiting for that, we’ve missed it.”
Christensen said there were opportunities for first-home buyers.
“If you’re a first-home buyer, this is your window.”
But Christensen said that window would not be open long as investors were going to return to the market soon.
“It comes down to opportunity but those opportunities can close pretty quickly because more people see them.”
Realty Group Limited managing director Heath Young said OneRoof’s data was very much aligned with the activity Eves and Bayleys had seen over the past 12 months.
“The property market at the moment is showing real signs of positivity with pricing stabilised and now showing three-month gains.”
Young said Realty Group had seen a “real lift” in new listings over the past two weeks.
“[This] is also a strong signal that the market is returning to normal.”
Young said the data also showed the impact of more first-home buyers being in the market with many of the lower-priced suburbs experiencing the largest gains as there was more competition for the same property.
“This data positively supports both homebuyers and homeowners because it provides a more certain and efficient market, especially with the increased listing activity.”
What does OneRoof’s report mean for mortgages?
OneRoof editor Owen Vaughan said while property prices in Rotorua did “slide quite a lot” from their peak in January 2022, the property market was “looking up”.
“We’re starting to see a pick-up,” Vaughan said.
“Things are starting to bounce back.”
Vaughan said he expected to see more action around Rotorua’s lakeside suburbs over the summer and into the new year, with more listings expected in January and February 2024.
“It will start to feel like a normal summer market and those tend to do well.”
Vaughan said property prices had slumped but mortgages had gone “sky high” this year.
“Now you’re looking at mortgages of 7 per cent and above. That has wiped out that sense of affordability because most buyers are curtailed by what they can afford in terms of mortgage.”
However, Vaughan said the slump had meant investors were largely out of the property market, leaving an even playing field for first-home buyers to compete against each other.
“Prices are steadily rising,” Vaughan said.
“So investors might be back on the market sometime soon.”
Vaughan said, for now, he expected buyers to remain “gun-shy”.
“Until people get more certainty around what the market will do, they will want to wait and see.”
Rotorua’s top property sales in 2023:
- 1349c South Highway 30, Rotoiti Forest, Rotorua. Sold for $3.425m in February. Private deal.
- 139 Lake Rd, Koutu, Rotorua. Sold for $1.9m in March. Private deal.
- 26 Riverlea Downs, Broadlands, Taupō. Sold for $1.825m in May. Private deal.
Properties across all but four of Tauranga’s suburbs have increased in average value over the past three months. Photo / George Novak
Most suburbs across Tauranga and the Western Bay have increased in average value over the past three months as local realtors express optimism for home buyers and sellers.
The rise comes as the property market begins to show signs of recovery from an overall slump since the Covid-19 pandemic.
A OneRoof Property Report released today with data partner Valocity shows that in the past three months, all but eight suburbs across Tauranga and the Western Bay increased in value. Pukehina’s average property values increased the most, jumping by 5.4 per cent, followed by the Parkvale suburb with 4.3 per cent. Bellevue and Maungatapu also netted increases in value in the 4 per cent range over the period.
The value shifts have prompted optimism among realtors, who have described the current market as a “more even playing field”.
The report also shows Tauranga’s longer-term property slump continued, with the average property value dropping compared to October 31, 2022.
In Mount Maunganui, where the average property value is reported at just over $1.4 million, property values fell by 8.4 per cent in the year to October 31.
According to OneRoof’s report, Tauranga’s cheapest suburbs have also shown a drop in average value. The biggest change was in Parkvale, where the average fell by 5.2 per cent in the past 12 months to $656,000.
But house prices across Tauranga are still higher than they were before the Covid-19 pandemic.
Eight suburbs – Katikati, Te Puke, Welcome Bay, Tahawai, Ōmokoroa, Minden, Aongatete and Whakamara – saw drops in average value over the past three months. The biggest difference in the past 12 months was recorded in Katikati, where the average property value fell by 7.6 per cent to $785,000.
However, Pukehina property values were up by 51.3 per cent on pre-Covid times, while the Western Bay district as a whole saw average property values increase compared to before the pandemic.
Real estate agents said the stabilising market was a reason for optimism for both homebuyers and sellers.
Ray White Tauranga and Bayfair director Rodney Fong said prices had stabilised in the past three to six months.
“There is more certainty for sellers as to what they can expect to sell for, in stark contrast to the price declines experienced in 2022.”
Fong said the numbers meant sellers could be cautiously optimistic and promised better value for buyers.
“[It makes for a] more even playing field between buyers and sellers,” Fong said.
“Buyers still have particular needs which are unique to each buyer. For example, living close to schools, family and work.
“A stabilising market should allow all parties more certainty in their planning.”
Fong said he had seen more first-home buyers in the past six months.
“Investors are still mostly on the sidelines, not active as yet.”
Fong said his advice to buyers and sellers was not to put their lives on hold, waiting for the market to change in their favour.
Realty Group managing director Heath Young said OneRoof’s data was very much aligned with the activity Eves and Bayleys had seen over the last 12 months.
“The property market at the moment is showing real signs of positivity, with pricing stabilised and now showing three-month gains.”
Young said Realty Group had seen a “real lift” in new listings over the past two weeks
“[This] is also a strong signal that the market is returning to normal.”
Young said the data also showed the impact of more first-home buyers being in the market, with many lower-priced suburbs experiencing the largest gains as there was more competition for the same property.
“This data positively supports both home buyers and homeowners because it provides a more certain and efficient market, especially with the increased listing activity.”
What does OneRoof’s report mean for mortgages?
OneRoof editor Owen Vaughan said Tauranga’s property market was “looking up” after prices did “slide quite a lot” from their peak in January 2022.
“We’re starting to see a pick-up,” Vaughan said.
“Things are starting to bounce back.”
Vaughan said he expected to see more action around the beach suburbs over the summer and heading into the new year, with more listings expected in January and February 2024.
“It will start to feel like a normal summer market, and those tend to do well.”
Vaughan said property prices had slumped but mortgages had gone “sky-high” this year.
“Now, you’re looking at mortgages of 7 per cent and above. That has wiped out that sense of affordability, because most buyers are curtailed by what they can afford in terms of mortgage.”
However, Vaughan said the slump had meant investors were largely out of the property market, leaving an even playing field for first-home buyers to compete against each other.
“Prices are steadily rising,” Vaughan said.
“So investors might be back on the market sometime soon.”
Vaughan said for now, he expected buyers to remain “gun-shy”.
“Until people get more certainty around what the market will do, they will want to wait and see.”
Tauranga’s top property sales in 2023:
- 3 Ngarata Avenue, Mount Maunganui, Tauranga. Sold for $6.6m in May 2023. Private deal.
- 472 Joyce Road, Pyes Pa, Tauranga. Sold for $3.765m in January 2023. Private deal.
- 152 Oceanview Road, Mount Maunganui, Tauranga. Sold for $3.675m in February 2023. Listed with Kirsty and Blair Cashmore.
- 117 Maranui Street, Mount Maunganui, Tauranga. Sold for $3.5m in April 2023. Listed with Matt Power.
Kiri Allan has branched into consultancy. Photo / Mark Mitchell
Former high-profile Labour minister Kiri Allan has launched a new consultancy business, months after leaving her Cabinet role due to a car crash in Wellington.
Allan recently pleaded not guilty to a charge of refusing to accompany police, which arose from alleged offending in late July.
The ex-Justice Minister also faces a charge of careless driving for the incident, in which she crashed into a parked car on Roseneath’s Evans Bay Parade.
Allan’s first court hearing has been put off twice and is now due to be held in the Wellington District Court in November.
Allan, who resigned her ministerial portfolios after the crash, also announced she would not be standing for re-election this year.
She has now launched a new business, KLA Consulting. With the tagline “efficient and effective: solving your problems”, the site for her business promises to provide “strategic advice” to help businesses “cut through to solutions”. She would be able to advise on economic growth and regional development.
“Kiri Allan is ready to tackle any challenge and put you on the path to success,” the site said.
“A proven track record of getting things over the line, Kiri will not waste time for you or your business. She will provide you with free and frank advice on how to get the solutions to the challenges you face in the most effective and efficient manner.
“A former Cabinet Minister and lawyer, Kiri has committed her professional life to finding solutions to some of the most complex situations and is willing to do this for you too.”
The site also described Allan as someone with a “reputation for getting things done”, with a skill for communicating complex material to a broad audience.
“A clear analytical and strategic thinker, she will provide candid advice as to the most effective and efficient way to get projects across the line. She had also been described as a ‘chaos-tamer’, a leader, an effective decision maker and a catalyst for forward-looking change.”
The consultancy “can help you expand what is possible for your business”.
A phone number listed on the site went to a voicemail introducing Allan as an MP.
Melissa Nightingale is a Wellington-based reporter who covers crime, justice and news in the capital. She joined the Herald in 2016 and has worked as a journalist for 10 years.
Westgate Lifestyle Centre, outlined in blue, was this year’s first-half largest retail sale, going for $85.7 million. Photo / Colliers
Sales of $1.27 billion of commercial, industrial and retail property were made in this year’s first six months, according to CBRE, but that was down 25 per cent on the previous half.
The NZ investment
The property market is showing signs of an upward turn. Photo / Sylvie Whinray
Auckland’s housing market is turning in time for the traditionally busy spring season, with prices climbing in 76 suburbs in the past three months.
Property pundits had been tipping in recent months that city prices – which spent more than a year tumbling from record-high values in late 2021 – were beginning to rebound.
The new figures will be welcome news for homeowners. But for those wanting to enter the market, rising prices may add an additional hurdle as buyers already grapple with soaring interest rates.
New Zealand’s median house price took a more than $150,000 dive during a 15-month slowdown after the market peak in November 2021.
Real Estate Institute data shows prices hit a record high of $925,000, before falling 18 per cent to $762,000 in February this year and now sit at $767,000.
Auckland’s median price hit $1.3m in November 2021, before falling 27 per cent to $943,000 in January this year. It now sits at $1.01m.
But the latest data by analysts CoreLogic gives the best indication that a rebound is now under way, chief economist Kelvin Davidson said.
Birkdale on the North Shore, Stonefields and Howick in the east, and Ōtara in the south are among 13 Auckland suburbs where prices jumped by at least 2 per cent since June 1.
Luxury suburbs Herne Bay, Parnell and Ponsonby also experienced price jumps of at least 1.7 per cent over the past quarter.
The data showed prices rose in a diverse mix of “cheaper” and “pricier” suburbs, Davidson said.
“The housing market downturn seems to have affected both high-end and low-end suburbs, and the early signs of upturn are showing something similar,” he said.
The market rebound is also extending beyond Auckland.
CoreLogic found prices have risen in the past three months in 269 out of 924 suburbs across New Zealand.
“Back in June, 71 suburbs had recorded a rise of at least 0.5 per cent in the previous three months. But spring forward to September, and that count has risen to 188,” Davidson said.
Across the country, 29 suburbs experienced price rises of at least 2 per cent – 13 in Auckland, four in Wellington and 12 elsewhere.
Kiwbank chief economist Jarrod Kerr said the housing market was likely to pick up again now interest rates appeared unlikely to climb higher and migration had surged.
“Putting a stake in the ground, saying this is the bottom [of the market], I think we can do that now,” he said.
About 100,000 more people arrived in New Zealand over the past year than left.
And while New Zealand had been in a building boom in recent years, construction had cooled in the past 12 months because of high building costs and falling house prices, Kerr said.
“Every migrant that comes here either takes a rental or looks to buy,” he said.
“So we’re going back into a situation where demand and population growth is outstripping supply.
“That’s not good for affordability, it’s not what we need, but that puts upward pressure on prices.”
If the Reserve Bank begins lowering interest rates next year, that could further boost prices, he said.
While homeowners might be happy to see prices rebounding, “affordability is still a massive issue” for many, Kerr said.
Tom Rawson, director of Ray White AT Realty, said his agents in South Auckland noticed sales and prices picking up about two months back.
“We think we’ve come off the bottom of the market now,” he said.
“July was when we started to see some good prices and good sales activity starting back up.”
Sellers had been gaining increasing confidence as the speed of house price falls and the speed of interest rate hikes slowed, he said.
“We’ve seen steadiness with interest rates, steadiness with listing inquiries, steadiness with listings coming to the market for the last few months,” he said.
The increase in listings – or the number of new homes being put up for sale – had been particularly positive for sellers, Rawson said.
“That gives people confidence that if they sell, there is something out there they can buy.”
His team had such confidence in the market they were holding another mega-auction on October 10 – just four days before the 2023 Election.
The mega-auction will include 60 properties being auctioned in a marathon event that could take up to nine hours.
Rawson conceded the timing of the event so close to an election could be risky, given buyers and sellers had in past years been more cautious ahead of elections because of the uncertainty a change in government could bring.
However, his team were “over-subscribed” for the auction, having already locked in 60 sellers and having to turn away others wanting to sell their properties on the day.
At the last mega-auction on July 26, one buyer snapped up four homes, Rawson said.
Overall, 38 homes sold under the hammer for a total of $32 million.
Rawson said Ōtara had been one of the busiest suburbs his team had been working in over the past few months, backing up data from CoreLogic.
The CoreLogic stats showed Ōtara’s average value now sat at $746,300 or about $20,000 and 2.7 per cent higher than on June 1.
However, while prices have risen over the last three months, Ōtara’s average value is still 7.7 per cent lower than its $808,850 value this time last year.
Elsewhere in Auckland, tiny Herald Island in the northwest (up 3 per cent in the last quarter to $1.49m) and Maraetai (up 3 per cent to $1.47m) and Mellons Bay (up 3 per cent to $1.96m) in the east were the best-performing suburbs.
Birkdale was the next best, rising 2.7 per cent to $955,900, followed by Ōtara.
Ben Leahy is an Auckland-based journalist covering property. He has worked as a journalist for more than a decade in India, Australia and New Zealand.
Nido shut just a few months after it opened in West Auckland. Photo / Michael Craig
Details have emerged about court action involving a crippling $41.4 million loss from a property syndicate-style scheme to fund the failed West Auckland homeware shop Nido which was to be New Zealand’s biggest
- June Smith was given the keys in May but the house is now listed on Rightmove
A widowed grandmother has put her luxury six-bedroomed Cornish mansion on the market – less than three months after winning it in a £25 Omaze raffle.
June Smith, 74, was given the keys to the huge three-storey house overlooking the Fowey Estuary just weeks ago in May, and told of how she called her children and then opened a bottle of red wine after her triumph in the draw.
The property was said to be the biggest-ever house prize to be given away in a draw in Britain and came mortgage free, with all stamp duty and legal fees covered.
However, despite pledging at the time to ‘definitely keep it for a while’ and to take advantage of its built-in yoga studio, Pieds Dans L Eau has already appeared on property website, Rightmove.
Ms Smith said today that she was looking to sell so that the money could help her children and grandchildren ‘with the next chapter in their lives’.
‘Winning this house has been an incredible experience, I still can’t believe it all actually happened to me, it still feels so surreal,’ she said.
‘I wanted to enjoy at least one family holiday here before I put it on the market.
What others have won in Omaze prize draws
Ian Garrick – November 2020
Britain’s first Omaze winner, policeman Ian Garrick, 58, from Mablethorpe, Lincolnshire, won a house in Cheadle Hulme, Cheshire, which he later sold for £1.1million. It meant he could retire and move to a £500,000 detached house with views of the countryside.
Catherine Carwardine, April 2022
NHS worker Catherine Carwardine, 60, from Wolverhampton, won a £3million six-bedroom house overlooking Lake Windermere. Beforehand, she and her her husband Chris had been fostering children at their five-bedroom house in Telford, Shropshire, for five years.
Uttam Parmar, August 2022
Operations manager Uttam Parmar, 58, from Leicestershire, won a four-bedroom Cornish house with panoramic views of the Camel Estuary. He and his wife Raki, 53, initially put the house on the market for £4million – but since then they have decided to hang onto the property for now.
‘We all came and stayed together and absolutely love the house and Cornwall – and my six grandchildren have certainly made the most of it.
‘The house is just wonderful and it’s been a magical holiday that we’ll remember forever.
‘I knew winning this house would be life changing for all my family, and that’s why I’ve decided to sell now, as I want to use the money to help all my children and grandchildren with the next chapter in their lives.
‘The money is going to make such a huge difference to all of us.’
The listing describes the home as ‘a striking, state-of-the-art waterfront home commanding an elevated position over the Fowey Estuary with uninterrupted, panoramic views.’
Viewings are strictly by appointment with agent, JB Estates, while the site’s mortgage calculator estimates monthly repayments of £26,467 over 25 years.
Ms Smith had tears of joy after winning the property when she revealed that the last time she stayed in Cornwall was in a caravan and how her late husband, Ron, would have loved it.
Ron, to whom she was married for 43 years, died last year when he suffered a heart attack at 74. Ms Smith has lived in her two-bedroom detached house in Essex for the past 17 years.
She worked as a bookkeeper before she retired to have children while Ron worked as an architectural designer all his life.
After winning the draw, Ms Smith was given the freedom to either live in the house, rent it out or sell it, with local estate agents estimating it could achieve £5,000 to £7,000 per month from long-term rentals – and up to £14,000 a week from peak season holiday rentals.
Ms Smith, who has three children and six grandchildren, said at the time that Ron would have ‘absolutely loved the design of this house’ and will be ‘looking down with an approving smile’.
She also said that when she was told she had won the grand prize, she could not believe she had actually won, saying: ‘People like me don’t win things like this.’
Ms Smith said: ‘I was just settling in for a standard Friday night in front of the telly – then the next thing I knew I’d won a mansion, I couldn’t believe it. The first thing I did was call my children, the second was to open a bottle of red!
‘My husband Ron died last year, but I’m sure he played a part in this win – he won it for all of us. Ron always wanted us to be financially secure as a family – and this house gives us that security.
‘He spent his life working with architecture, he’d have absolutely loved this house – it’s a work of art. We used to come for family holidays in Cornwall and stay in a caravan, but now we own a £4.5million mansion – it’s just unbelievable.
‘The house is truly stunning and the views are simply breathtaking, even the rain couldn’t dampen our spirits when we first came here, it was love at first sight.
‘It has its own yoga studio, so maybe I’ll take that up, although my son says it would make a great bar too.
‘I’ve got six beautiful grandchildren and have now got plenty of room for all of them to come and stay – we’re going to have the best summer holiday ever.
‘Having spent some time at the house, I’m definitely going to keep it for a while, whatever I decide to do long term it’s a life changing win for our family.’
Ms Smith has three children – Katherine, Wesley and Rory. Katherine and Rory live in East Anglia with two children each, while Wesley lives on the Gold Coast of Australia with his wife and two children.
The house provides spectacular views along the estuary as well as the architecture of nearby Fowey and the surrounding Cornish countryside.
The property, which comes with furnishings included, was designed by the West Country architects Harrison Sutton.
It has a bright and airy entrance hall, with an adjacent home office that provides panoramic estuary views with floor-to-ceiling windows on two sides of the room.
The main sitting room has a double-sided log fire, with a cinema and snug room complete with 85in TV on the other side, that leads out to a west facing patio.
A kitchen and breakfast room features a central island and glazed sliding doors on two sides that lead out onto a cantilevered balcony.
In addition to Smallbone units and Sub-Zero appliances, there are two dishwashers, a hot water tap and a Wolf cooker with a Teppanyaki cooker and griddle.
A secondary kitchen pantry sits on the other side of the hallway, next to a dining room.
A cantilevered staircase leads up to the first floor, where a large open landing leads to the main bedroom, which has glazed walls on two sides.
In addition to a dressing area, there is an en-suite bathroom with a walk in shower.
A ground floor bedroom with en-suite bathroom is accessed from the sitting room. The bedroom also has access to the balcony in front of the sitting room.
A secondary staircase leads from the sitting room to a guest bedroom with en-suite bathroom and access to a shared balcony.
A yoga studio sits at one end of the garden – and at the far end there is a seating area with views down the estuary.
The draw also raised £2.1million for the end-of-life charity Marie Curie.
Three months after prevailing at a West Hills foreclosure auction for a house he had planned to move his family into — but which he now intends to rent or flip — Omar Kh came back to New Haven to help a close friend and fellow New Yorker try to get his own foot in the door of investing in rundown, tax-foreclosed local real estate.
On Saturday midday, Kh stood on the sidewalk outside of the three-family house at 6 Read St. in Newhallville to participate in his second local tax foreclosure auction since April.
That first go around, Kh, who lives in Queens and works for a wholesale food supplier, put in the high bid on a single-story, two-family house on Hilltop Road. He won that 29-round auction after convincing a Waterbury investor with a plea focused on how Kh planned to live in the West Hills foreclosed house with his family.
On Saturday, Kh showed up to Read Street not to put in his own bids on the tax-foreclosed three-family rental property — but instead to support his friend Mohamad Hamasa, a fellow Queens resident who works for a coffee and bagel wholesaler and whom Kh introduced to the world of New Haven real estate.
If he won Saturday’s auction, Hamasa said soon before the bidding start time at noon, he planned to flip or fix up and rent out the mostly vacant property (which, according to court-appointed attorney Alfred Zullo, may still be home to a squatter).
“I’m trying to get this beautiful,” Hamasa said with a smile about the worn down and mostly abandoned two-and-a-half-story rental.
Kh said that Hamasa’s invest-and-rent-or-flip plans for 6 Read St. are similar to the plans he now has for the tax-foreclosed house on Hilltop Road he paid $107,500 for after the April auction.
“It’s so bad,” he said about that property he had initially planned on moving his family into. “It needs a lot of remodeling. Maybe I’ll invest,” or maybe he’ll sell to Hamasa or another investor, who could flip it.
Kh said he and his family are still renting in Queens, and are still hopeful they’ll be able to move to their own house in New Haven some day. “We like New Haven,” he said. But, at least for Saturday, he wasn’t trying to buy the multi-family house up for auction. Instead, he was there to help a friend.
$30K Owed; “No Contingencies Whatsoever”
According to state court records, the City of New Haven first filed a foreclosure lawsuit on 6 Read St. back in January 2022 because of the owner’s failure to pay four years’ worth of local real estate taxes. The court first entered a judgment of foreclosure by sale in October 2022, when it found that the property had nearly had $25,500 in back tax debt.
The property’s owner, a Hamden resident who did not respond to a request for comment by the publication time of this article, wrote in a December 2022 motion to open judgment that she was working to secure funds to “renovate and lease 3 apt units which would generate approx $4,000 monthly — more than enough to pay outstanding property taxes.” She asked for two years to get that financing, fix up and rent out the property, and pay off the outstanding taxes.
The court denied that motion to open and — after the owner filed for bankruptcy in January of this year, and after the city filed an amended complaint in April — the court issued another judgment of foreclosure by sale on May 15, this time finding that the property’s tax debt had climbed to $30,141. The city most recently appraised the property for tax purposes as worth $251,700.
All of which led to Saturday’s foreclosure auction on the sidewalk and pavement in front of 6 Read St.
Three investors wound up putting in bids on the property over the course of the 8‑minute auction: Hamasa; Martha Kane of Hamden, who planned to fix up and rent out the property with her husband if they prevailed on Saturday; and Bethany-based local landlord Jianchao Xu.
Zullo kicked off the auction at noon, announcing that the city’s opening bid was $43,300 to cover the property’s tax debt and other expenses.
“The property is being sold as is, subject to no contingencies whatsoever,” the court-appointed attorney said. “The Committee makes no warranties either expressed or implied concerning the property’s condition, and no adjustments will be made for any defects that may be discovered” after Saturday’s sale.
Hamasa entered the first bid of the day: $45,000.
“$50,000,” Kane replied.
“$55,000,” added Kh, speaking up on behalf of his friend and official bidder, Hamasa.
“$55,500,” said Kane.
And up and up the bids went, going nearly two dozen more rounds before Hamasa said, “$117,000.”
Kane looked to her husband Tracy, who was smoking a cigarette nearby. He shook his head slightly. Kane looked back at Zullo and indicated that she wasn’t going to go any further.
That’s when Xu entered his first bid of the auction: “Let’s do $118,000,” he said.
“$119,000,” countered Hamasa.
Xu considered the property. Kh urged him to let Hamasa win this one. “We leave another one for you,” he joked. Xu agreed, indicated to Zullo that he wouldn’t be bidding any higher on the property, and shook the hands of Kh and Hamasa after letting the latter win.
“I’m happy,” Hamasa said after winning the auction with the high bid of $119,000.
Next up: He’ll close on the property and try to “bring [the house] to life again,” either by flipping it or renting it out.
See below for other recent Independent articles about foreclosures.
• Family Prevails At Fixer-Upper’s Foreclosure
• Landscaper Cleans Up At Townsend Foreclosure
• Investor Bows Out After Family Plea
• Farnam Founder Tops Foreclosure Auction
• Bank’s Bid Beats Local Buyers
• No Bidders Show For Newhall St. Auction
• Auction Keeps Owner In Neighborhood
• Auction Winner Remembers The Roses
• Homeowner Battles“Tangled Title” Foreclosure
• Foreclosure Sends Tenants Packing
A TikTok star who has racked up millions of views has revealed that has been living in his car.
Isaac Richman, from North London, has become a hit on TikTok and has more than 100,000 followers on the platform.
He is known for pranking people travelling on the London Underground by making directed announcements at people so they think they are in trouble.
The TikToker also has a job in construction and earns around £56,000 a year.
But Isaac claims he has been living in his car because landlords and estate agents fear he won’t be able to keep up with his rent payments because he is self-employed.
Landlords will usually ask for proof of earnings if a prospective tenant is self-employed and will often ask for one to three years’ worth of accounts, as well as HMRC self-assessment forms.
It’s unclear if Isaac was asked for these details or if he was able to provide them.
He spoke candidly on his TikTok and said: ‘I’m dreaming right? I must be dreaming. I’ve got 70,000 followers on TikTok, I’ve got 10,000 followers on YouTube, I’ve got 10,000 on Instagram.
‘Had 200 million views in three months but I live in a car. In this car. I’m dreaming right?
‘Can someone wake me up because I live in his car and I have all these followers and all these views. How does that work out?’
Speaking with MyLondon, Isaac explained that he put down a £2,000 holding deposit and the estate agent said they would sign the contract.
But the property was given away to someone else.
He added: ‘I’ve been going to estate agents and they look at me, and they think, young black man, probably ain’t got the money to pay for this.
‘They don’t know that I make more money than half of these estate agents.
‘When you go to view a property, there’s about ten other people in a queue before you.’
Isaac has since got himself a studio flat with the assistance of Enfield council.
Since he has been of no fixed address for a while, he has only just been able to register with GP practice.
But the online sensation slammed London’s mayor, Sadiq Khan, for the housing crisis and told The Sun: ‘There are a lot of things wrong with London. I understand the problems Londoners face and Sadiq Khan doesn’t, I think.’
The outlet also reports that Isaac plans to run for mayor so he can improve the lives of Londoners.
Over the past couple of months, Isaac has been saving for a deposit and getting his accounts in order so he can apply for a mortgage.
Fans commented on his heartfelt TikTok video, and sent their thoughts but also discussed how bad the housing crisis is.
One wrote: ‘Nobody realises how bad this housing crisis is and there is no sign of it getting better!! I feel your struggles and wish you the best…’
Another said: ‘To make people even smile on the tube is a talent mate… hope u ok.’
A third penned: ‘I hope you’re okay. It’s like when you have everything everyone is there but when you have nothing no one’s there.’
A fourth commented: ‘That is genuinely awful. What is wrong with our society?’
VIEW THE INTERACTIVE DIGITAL REPORT: https://blog.remax.ca/commercial-real-estate-report/
The RE/MAX 2023 Commercial Property Report examined 12 commercial real estate markets from
- Industrial real estate continued to outperform almost every other asset class, with all markets reporting strong sales and lease activity. With both property and lease values climbing, investors and end users in
British Columbiaand Ontariohave extended their search perimeter for distribution and warehousing facilities to neighbouring provinces with more affordable pricing. A spillover of demand from these provinces and key markets have bolstered sales of industrial product in Edmonton, Calgary, Regina, Saskatoon, London– St. Thomas, Halifaxand St. John’s. While demand has softened from peak levels reported in 2022 in most Canadian markets, inventory levels remain extraordinarily low, given the headwinds the industry has encountered.
- Land sales remain solid, despite higher interest rates and construction costs, with acreage zoned industrial, multi-family and retail most sought-after in major Canadian centres. Approvals in place have been a critical component in bringing deals to fruition, given the lengthy approval process that exists in most markets. Red tape and development fees have been a barrier in all types of new construction. Vendor take-back mortgages have also re-emerged in several markets as sellers work with buyers to close the deal.
- Retail continues to be surprisingly robust, given the growth of online sales in recent years, with almost 92 per cent of markets (11/12) reporting solid activity in retail nodes and shopping centres. From storefront on major arteries to strip plazas and shopping malls, the bricks and mortar experience is resonating with today’s consumers. Investment dollars have been pouring into major shopping malls across the country as landlords seek to enhance the shopping experience. Landlords are also cashing in the live-work-shop phenomenon, with the number of residential applications on commercially zoned property growing across the country.
- The office sector continues to struggle in markets across the country as employers wrestle with hybrid work models, particularly in the downtown core. While reducing the physical footprint to reduce costs is top of mind with some companies, others are looking to incentivize employees return by creating a more social component within the workplace.
- Repurposing of commercial office space to residential planned or underway in major Canadian centres hold key to healthy, vibrant downtown cores, with 50 per cent of markets (6/12) surveyed reporting conversion activity in this growing segment.
“Although activity has come off peak levels reported in the first quarter of 2022, demand for commercial real estate remains relatively healthy in most major centres,” says
In key centres, RE/MAX brokers have noted that buyers and sellers rose to the challenge in the first quarter of the year, pulling out all stops to make deals happen. In an analysis of closed transactions in the
Real estate investment trusts (REITs) are now slowly venturing back into the market, driving demand for industrial, multi-family, retail and, to a lesser degree, office product. Conditions are ripe for investment, particularly for multi-family properties, given growing demand for housing in markets across the country. According to
“On the office front, with the work-from-home model taking root, many corporations within the downtown core of major Canadian centres are envisioning smaller footprints in their future,” says Alexander. “As sublet space expands and lease renewals involve reduced space requirements, management is reconsidering their options.”
RE/MAX found that for some Class B and C buildings, the answer may lie in repurposing their buildings, as demand for residential housing reaches critical levels. Although not all buildings will be ideally suited for retrofit, some major centres are providing incentives to encourage conversion to residential.
“Commercial office markets are experiencing a transformational shift in the aftermath of the pandemic,” says Alexander. “Downtown cores were virtually decimated by Covid restrictions and have yet to come back to life in many Canadian centres. The conversion programs now underway ensure that our city centres remain vibrant in the future, restoring vital foot traffic that is the lifeblood of the country’s core urban areas. The retrofit and renovation activity not only brings desperately needed residential product online, but it also supports the surrounding retail shops and restaurants, transit systems, and the overall health of our downtown neighbourhoods.”
The most significant holdback is the red tape that currently exists in regard to zoning amendments, applications and approvals at local and provincial government levels. With housing supply at critical levels and an immigration commitment of at least 800,000 new Canadians over the next two years, governments must be prepared to act quickly.
“Population and GDP growth will continue to be a strong driver bolstering urban expansion in cities across the country,” says
RE/MAX also found that lower inventory levels, across the board and in almost every asset class, have hampered activity to some extent. In the first three months of the year, the shortages sparked competition, particularly in the industrial segment. Once again, supply plays a critical role and availability remains tight for quality product. Without an influx of available listings, this trend is expected to continue through to year-end, assuming supporting positive fundamentals remain in place.
“Overall, a number of encouraging indicators characterize
*Compiled from data available from RealTrack.
- Industrial remains the top performing sector in
Greater Vancouverwith vacancy rates under one per cent. Consistent demand exists for warehousing and distribution space throughout the GVA, with conditionals tightest in suburban areas outside Vancouver Proper in Richmond, Delta, Burnabyand Langley.
- Area malls are rethinking the value proposition of their expansive parking lots and replacing them with multi-family buildings and commercial office space. Multiple malls and shopping centres are in various stages of development, with many offering a mix of multi-family, office, retail and restaurants.
- Housing continues to be
Vancouver’sgreatest challenge and residential builders and developers can’t get their shovels in the ground fast enough, but red tape and delays from application to approvals and development fees are dragging out the development process.
While the rising cost of borrowing against an inflationary backdrop has somewhat stifled demand for commercial real estate in the
Industrial remains the top performing sector in
Availability rates for industrial space have edged higher, at 2.1 per cent in the first quarter of 2023, compared to the same period in 2022, but are still amongst the lowest in the country at present, according to data from the Altus Group. The greater influx of space in the market has yet to impact lease rates, which have risen by double-digits (almost 20%) year-over-year to $22 net per square foot on average. Prospective tenants are exercising patience in their decision-making as a result, while existing tenants are looking to achieve greater efficiencies by reducing their footprints.
Land sales continued but at a more tempered pace in the first quarter of the year. Property zoned residential, industrial, and some retail throughout the
A resurgence in foot traffic has contributed to a brighter outlook for the retail sector. Retail nodes in the downtown core continue to evolve, with storefront on arteries including
Edmonton’sideally positioned for strong investment activity in 2023 as the city posts one of its strongest first quarters in recent history.
- Out-of-province investors are increasingly drawn to the city’s affordable price point for land, young and educated labour force, and favourable provincial tax structure and incentive programs.
- While the Industrial sector leads the way, other asset classes are experiencing an uptick in activity this year.
Commercial investment in the
Momentum continues to ramp up in the industrial sector as logistics, warehousing and distribution tenancies spillover from the Lower Mainland and
Owner-users and single tenants continue to seek industrial product, but inventory remains tight, especially for multi-bay properties, despite on-going construction in
Development land has seen significant growth over the past year, with 54 sales in
Multi-family land sales fell just short of last year’s levels, with eight sales valued at over
Activity in the office sector softened in the first quarter of the year despite greater inducements, with availability rates edging slightly higher to 20.4 per cent, according to data available from Altus Group. Vacancy rates remain high, even with the traffic the
Retail continues to be exceptionally strong, particularly in the city suburbs, given population growth and higher disposable incomes within the province. Twenty-six sales were reported in the first quarter of 2023 in
- Investors from
British Columbiaand Ontarioare exceptionally active in Calgary’scommercial market, driving demand for industrial and multi-unit residential product. Calgaryhas bucked the national trend, with availability rates in both industrial and office leasing trending downward in the first quarter of 2023.
- With a growing tech presence and 10 commercial buildings slated to undergo conversion to residential, excitement is building in
Calgary’sdowntown core, with demand for retail and restaurant space on the upswing.
Spillover from out of province remains a major source of business in the industrial sector, with warehousing and distribution properties topping the list of investor demands. Given limited availability of industrial space in the lower mainland, most containers that are shipped to BC are now loaded onto trucks for a 13-hour journey to
Suburban office space, particularly in
Low vacancy rates characterize demand for retail space and buildings in
Land sales overall remain brisk, with out-of-province investors seeking industrial, multi-family, and retail properties for development. Existing multi-family is experiencing solid demand from
Strong population growth, government incentives, and lower tax structures continue to draw companies both east and west of the province to
- Industrial sales are the driving force in the commercial sector, with REITs and institutional investors vying against end users. Lack of supply continues to hamper activity, prompting some end users to purchase older, existing buildings and rehabilitate or tear down, according to their requirements.
- Retail in suburban neighbourhoods has also soared, with limited inventory contributing to skyrocketing rates. Retail leases are hovering between
$25to $30per square foot, with common costs amounting to another $12to 15 per square foot. Demand is so strong that landlords feel no pressure to negotiate, especially for newer, up and coming areas, where product is few and far between.
- Office leasing on the other hand has faced some challenges in the downtown core with key players such as banks and corporate offices leaving former A class space for new A class office buildings on the riverfront. The new construction has drawn so many tenants from neighbouring offices that an estimated 50 per cent of B class buildings are vacant.
Industrial is extremely tight, with any space coming to market immediately scooped up. In 2018, lease rates hovered between
Office leasing on the other hand has faced some challenges in the downtown core with key players such as banks and corporate offices leaving former A class space for new A class office buildings on the riverfront. The new construction has drawn so many tenants from neighbouring offices that an estimated 50 per cent of B class buildings are vacant. Landlords are willing to work with the right tenant, offering step leases and long-term improvement allowance.
The multi-family residential segment remains strong, with door values climbing about 17 per cent year-over-year, rising from
Land is available for sale but is primarily situated on the city’s borders. Priced from
Industrial sales are the driving force in the commercial sector, with REITS and institutional investors vying against end users. Lack of supply continues to hamper activity, prompting some end users to purchaser older, existing buildings and rehabilitate or tear down, according to their requirements. In one recent instance, three large buildings at least 35,000 square feet in size were torn down for a massive, three-storey building constructed on the same footprint. While
Retail in suburban neighbourhoods has also soared, with limited inventory contributing to skyrocketing rates. Retail leases are hovering between
Strong demand and heated activity now characterize the market for farmland, where no comparable sales currently exist. Every quarter sale is now setting a new record. Rents are up significantly, with current costs rising from
- Industrial sales and leasing are at the forefront for most, with vacancy rates at less than one per cent. Developers are scrambling to meet demand but with little or no serviced land left in the city, industrial continues to be pushed to
Regina’speripheral areas. Regina’shousing shortage, coupled with strong population growth, has accelerated the development of purpose-built rentals, with some spillover into neighbouring Weyburnand Estevan.
- Farmland remains buoyant, with record sales occurring as large farm operations continue to expand into adjacent properties.
Industrial sales and leasing are at the forefront for most, with vacancy rates at less than one per cent. Developers are scrambling to meet demand but with little or no serviced land left in the city, industrial continues to be pushed to
Developments east of
The retail market has been relatively steady over the past year, with demand greatest for leased space in sought-after locations.
Office space in the core continues to drag on the
Farmland remains buoyant, with record sales occurring as large farm operations continue to expand into adjacent properties. Price increases have followed in lock step, with percentage gains in North Eastern and West Central Saskatchewan experiencing the greatest upswing in 2022, climbing 24.2 per cent and 17.2 per cent respectively, according to the 2022 FCC Farmland Values Report. Irrigated farmland in the province’s West Central and South Western areas have jumped 26 per cent, rising from
Financing, however, is becoming increasingly challenging in today’s high interest environment, particularly with the big six chartered banks who are tightening lending criteria. Arranging financing on farmland or the sale of businesses remains most frustrating for investors, with lenders now demanding down payments upwards of 45 per cent. While there are alternative lenders available to farmland investors, those selling businesses in
- Industrial remains at the forefront in 2023, leading development citywide, while the multi-family sector has reignited buyer attention this year in large part due to attractive
- Fewer investors have been active in the industrial market this year, with end users picking up the slack. Newer warehousing and distribution space remains most sought-after, generating competition, with lease rates rising year-over-year and prompting some to consider older product in secondary markets.
- The office sector remains soft in the downtown core, prompting some conversions, but the suburban market has been robust.
- The retail sector experiences solid demand, demonstrated by tighter vacancy rates. Strip malls and shopping plazas remain a coveted asset.
Stability continues to be the hallmark of
As the perennial favourite, industrial sales and leasing enjoy strong demand in
A lack of supply of serviced land within the city limits has created tighter market conditions for industrial and multi-family. Most new industrial developments currently under construction are fully or partially pre-leased, with just a handful of projects built on speculation. Fewer investors have been active in the industrial market this year, with end users picking up the slack.
Multi-family residential continues to experience solid demand as
Purpose-built rentals are popping up in locations surrounding concentrated retail nodes, with the latest billion-dollar announcement the proposed Shindico/
Downtown office space has struggled in the aftermath of the pandemic. While landlords in these properties are offering attractive incentives to potential tenants, it will likely take eight to ten years to absorb all the excess office space in the core.
The crux of the retail shopping experience in
Given solid economic fundamentals, the stage is set for a continuation of healthy commercial activity in 2023. GDP growth in the province is forecast to climb just under one per cent in the year ahead, with new trade agreements and higher commodity prices for wheat and canola contributing to the provinces’ prosperity. Immigration continues to bolster population growth with an estimated 1.5-per-cent increase in the number of residents recorded between 2021 and 2022 to reach close to 872,000, according to
- Industrial continues to lead the way, with lease rates and sale prices rising substantially over year-ago levels. Vacancy rates remain at historically low levels, with solid demand for warehousing and distribution space prompting an abundance of new construction in the region.
- Land sales remain solid in both the residential and industrial segment, while the pace of activity has slowed somewhat from year-ago levels. The challenge to date has been the development process, which is cumbersome and slow moving.
- Office leasing and sales remain soft, with the effects of the pandemic still lingering. The downtown core has been particularly hard hit, with availability rates now hovering over 20 per cent. Older B and C class buildings will have to undergo major upgrades to attract tenants, with landlords offering inducements and step leases to sweeten the deal.
Despite rising interest rates and the fallout from the pandemic,
Industrial continues to lead the way, with lease rates and sale prices rising substantially over year-ago levels. Vacancy rates remain at historically low levels, with solid demand for warehousing and distribution space prompting an abundance of new construction in the region. The city’s geographic proximity to major arteries and rail lines at an affordable price point continue to attract global investment. Prominent examples include large-scale operations such as the new high-tech Amazon facility boasting 2.8 million sq. ft. on four levels on the old Ford Talbotville site and the multi-billion-dollar
Land sales remain solid in both the residential and industrial segment, while the pace of activity has slowed somewhat from year-ago levels. The challenge to date has been the development process, which is cumbersome and slow moving. Fees charged by the municipality and the province also continue to impede development and need to be streamlined to increase new building activity.
There continues to be strong interest demonstrated in new multi-unit residential construction. REITs remain active in this segment of the market. Higher rental rates –up significantly year-over-year in the
The retail sector has performed quite well over the past year, with strip malls in new and older housing developments in high demand. Supply is tight, falling well short of demand, with the number of properties listed for sale few and far between. The area’s major malls, however, are struggling to lease space and some have converted their retail space to office and commercial in an effort to attract new tenants.
Office leasing and sales remain soft, with the effects of the pandemic still lingering. The downtown core has been particularly hard hit, with availability rates now hovering over 20 per cent. Older B and C class buildings will have to undergo major upgrades to attract tenants, with landlords offering inducements and step leases to sweeten the deal. There has been some talk about converting some commercial buildings in the core to residential, but not all floor plates are an easy transition.
Lower interest rates and greater clarity surrounding the remote work issue should help to revive the ailing commercial office sector. The only question is when?
- Manufacturing facilities are most sought-after in
Hamilton, representing approximately 50 to 60 per cent of all sales/leasing activity, followed by warehousing and distribution sites. Inventory remains tight throughout the area, with new industrial parks in and around the Hamilton Airportnow fully leased.
- Owners of malls and plazas continue to find exceptional value in their parking lots, submitting proposals to convert underutilized areas into high-density residential/commercial developments that promote live-work-shop communities.
- While some improvement has been noted in demand for urban/suburban office space, the work from home phenomenon has had a significant impact on the city’s commercial office space.
The industrial asset class continues to lead
Manufacturing facilities are most sought-after in
Retail product, especially strip plazas, has also experienced strong demand in the first quarter of the year in
The availability rate for office space in
REITs continue to be an active participant in industrial real estate but have stepped back from other commercial asset classes in the
- Industrial remains by far the strongest sector, with vacancy rates still under one per cent. Lack of inventory continues to hamper activity in the industrial sector, with both sales and leasing opportunities few and far between.
- Land with approvals in place is most sought after. Industrial, retail, and residential apartments in all sizes – multi-plex to high-rise – all represent opportunity but finding land at a decent price is challenging, especially after taking into consideration the additional cost of construction, project management, and development charges.
- Shopping centres and malls in and around the 416-area code continue to innovate, with residential condominium developments currently under construction or proposed. Construction is already underway at the
Promenade Mallwhere residential development will provide a captive audience for the site’s retail presence.
Industrial remains by far the strongest sector, with vacancy rates still under one per cent. The shift from manufacturing to warehousing and distribution that was accelerated during the pandemic will remain the top usage for industrial space. Large transactions continue to occur in the GTA, as evidenced by the recent sale of a
Land with approvals in place is most sought after, with the weighted average of estimated approval timelines for residential applications climbing from 21 months to 32 months between 2020 and 2022, according to the Municipal Benchmarking Report by the
As prices continue to climb in the industrial sector, some companies that moved their offices into their industrial facilities may be prompted to re-investigate opportunities available in the office sector. According to Altus Group, availability in
In the suburbs, office space has fared slightly better with an uptick in small-sized companies looking for commercial space, particularly in stand-alone buildings. Medical space, and space for schools and daycare facilities are especially coveted.
Retail has shown remarkable resilience, especially urban retail storefront along the city’s main arteries. As construction winds down on streets like
Shopping centres and malls in and around the 416-area code continue to innovate, with residential condominium developments currently under construction or proposed. Construction is already underway at the
Perhaps the strongest sign of well-being in the retail sector is the recent closing of Bed, Bath and Beyond. Within days of liquidation, Canadian Tire announced that they had acquired 10 leases (nearly 250,000 square feet) in
Multi-unit residential continues to be a top performer, with demand soaring for existing portfolios and values accelerating at a rapid pace. Population growth and a shortage of available rental apartments have contributed to increased demand for purpose-built rentals throughout the GTA, but recent policies regarding rent control and zoning regulations have had an impact on new construction. However, some condominium developers watching the recent pull-back in buying activity over the past year have turned to purpose-built rentals, taking advantage of inducements and credits offered by government and
Those in the industry remain cautiously optimistic with regards to the commercial real estate market in the
- Industrial sales and leasing remain tightest, with demand greatest for manufacturing, warehousing and distribution facilities. While availability rates edged up year-over-year in
Ottawa, according to a recent report by Altus Group, vacancy rates remain stubbornly low, hovering at just over one per cent.
- Land sales have soared in 2023 with industrial now fetching
$1 millionan acre (and has moved for as high as $1.2 millionan acre in recent months).
- Opportunities currently exist within
Ottawafor commercial investors, many of whom are attracted to the market because of its reasonable price point. Small office buildings, industrial buildings, and residential land, particularly product on the greenbelt, all represent a solid investment strategy.
Scarcity best describes the state of the commercial real estate market in the nation’s capital, with all asset classes reporting product shortages except for office space in the city’s downtown core.
Industrial sales and leasing remain tightest, with demand greatest for manufacturing, warehousing and distribution facilities. While availability rates edged up year-over-year in
Land sales have exploded in 2023 with industrial land now fetching
Retail has also experienced growth this year, especially in sought-after areas such as Westboro, Glebe, Centertown, and downtown. Demand for retail storefront in high traffic areas has been especially brisk. Malls and shopping centres are also doing well, with the
The office sector has had its challenges during the pandemic and its aftermath, with civil servants recently identifying the ability to work from home as a major bargaining chip in their contract negotiations. There are some very real questions regarding the future of commercial office space in downtown
Opportunities currently exist within
- Commercial office vacancies hovering at 18 to 20 per cent in the core, coupled with the shrinking footprints of existing corporate offices, have prompted a seismic shift in the office market. While not all office buildings are well-suited for residential conversion, the city’s abundance of heritage buildings offer a unique opportunity to preserve history and provide homeownership opportunities in prime real estate on
- Vacancy rates under one per cent are behind much of the push for purpose-built rentals in
Halifaxand the surrounding areas, with not enough product to accommodate the city’s rapidly growing population. With the population approaching 500,000, the need for housing has never been greater, yet the estimated 24,000 units planned in 10 to 15 buildings throughout the Halifax Regional Municipality, are on hold, with developers waiting for more favourable conditions to present.
- The city’s malls continue to fare well, with few vacancies despite higher lease rates. Retailers are reducing their footprints in area malls, given robust on-line shopping sales while management is looking to enhance the shopping experience by adding more restaurants, gyms, and in some cases, higher-end grocery stores. Some landlords have revamped large parking lots, adding office towers and a residential element to complement existing retail.
Commercial real estate activity continues to ramp up as investor appetite for key asset classes escalates within
Commercial office vacancies hovering at 18 to 20 per cent in the core, coupled with the shrinking footprints of existing corporate offices, have prompted a seismic shift in the office market. While not all office buildings are well-suited for residential conversion, the city’s abundance of heritage buildings offer a unique opportunity to preserve history and provide homeownership opportunities in prime real estate on
Vacancy rates under one per cent are behind much of the push for purpose-built rentals in
The city’s malls continue to fare well, with few vacancies despite higher lease rates. Retailers are reducing their footprints in area malls, given robust on-line shopping sales while management is looking to enhance the shopping experience by adding more restaurants, gyms, and in some cases, higher-end grocery stores. Some landlords have revamped large parking lots, adding office towers and a residential element to complement existing retail. Big box retail power centres are having difficulty leasing larger stores ranging from 5,000 to 10,000 square feet or larger in today’s retail climate, as evidenced by the 30 to 40 per cent vacancy rate at
Inventory in the city’s industrial parks remains tight, with availability levels falling to four per cent in the first quarter of 2023, according to data from the Altus Group. Halifax was one of two markets in the country that experienced further decline this year. Warehousing, distribution and flex-space is most sought-after, although there is some demand for manufacturing facilities. The shipyards have experienced tremendous growth over the past decade, with more than
With growth in Halifax and the surrounding areas on an upward trajectory, the outlook for commercial real estate is bright. Last year alone, interprovincial migration accounted for 40 per cent of the surge in population growth, while international migration accounted for the remainder of growth. According to
Newfoundland– Labradoris forecast to lead Atlantic Canadain GDP growth in 2023 as capital spending ramps up in the province.
- Industrial inventory shortage in
Ontariomay spill over into Newfoundland– Labradoras potential buyers and tenants’ express interest in the St. John’sindustrial product.
- After moving en masse to the suburbs, is there a potential return to downtown core for corporate offices?
Industrial remains the strongest commercial asset class in
While vacancy rates for commercial office space in the core topped 20 per cent in the first quarter of the year, the outlook is improving. Recent inquiries suggest a potential shift back into the downtown core. Several years ago, the province’s largest corporations moved their office space from the core to the suburbs, where greater square footage and available parking at a lower cost proved irresistible. With the shift to remote working, the abundance of space is unnecessary for many employers, and the move back to the vibrancy of the city centre is attractive to employees from both a recreational and social point of view. The Bank of Montreal, for example, just located their corporate offices to the new Class A commercial space at
Retail sales and leasing continue to thrive in
Investment in the province has ramped up significantly, with the natural resource sector behind much of the push this year. Of the
About the RE/MAX Network
As one of the leading global real estate franchisors,
RE/MAX was founded in 1973 by Dave and
Forward looking statements
This report includes “forward-looking statements” within the meaning of the “safe harbour” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “believe,” “intend,” “expect,” “estimate,” “plan,” “outlook,” “project,” and other similar words and expressions that predict or indicate future events or trends that are not statements of historical matters. These forward-looking statements include statements regarding housing market conditions and the Company’s results of operations, performance and growth. Forward-looking statements should not be read as guarantees of future performance or results. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include (1) the global COVID-19 pandemic, which has impacted the Company and continues to pose significant and widespread risks to the Company’s business, the Company’s ability to successfully close the anticipated reacquisition and to integrate the reacquired regions into its business, (3) changes in the real estate market or interest rates and availability of financing, (4) changes in business and economic activity in general, (5) the Company’s ability to attract and retain quality franchisees, (6) the Company’s franchisees’ ability to recruit and retain real estate agents and mortgage loan originators, (7) changes in laws and regulations, (8) the Company’s ability to enhance, market, and protect the RE/MAX and Motto Mortgage brands, (9) the Company’s ability to implement its technology initiatives, and (10) fluctuations in foreign currency exchange rates, and those risks and uncertainties described in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the
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