GTA Condo Life - June 29, 2024 by NextHome

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FINALLY, A BREAK

WAYNE KARL

EDITOR-IN-CHIEF

Condo Life Magazine

EMAIL: wayne.karl@nexthome.ca

TWITTER: @WayneKarl

For the first time in four years – since the pandemic, in fact – the Bank of Canada on June 5 finally made the long-awaited decision to reduce its target for the overnight rate to 4.75 per cent.

While not a large reduction, it’s the move that prospective homebuyers, homebuilders – and even homeowners with mortgage renewal on the horizon – have been waiting for. The hope is that it’s just the beginning of a succession of rate cuts, spurring activity in homebuying and building.

“With the rate cut, while not a big one, and not close to the four-percent increase over the last two years, the market may see one thing and one thing only, a changed sentiment,” says Jesse Abrams, co-founder and CEO of Homewise, a Toronto-based mortgage brokerage. “News articles, public opinion and market expectation will be that rates are lowering. Most Canadians don’t fully grasp how large the increase was to the policy rate over the last couple of years.

“It could lead those sitting on the sidelines to wake up and call their realtors, mortgage brokers and get back to thinking about home searching. It is a small decrease and the first of what should be more to come in the coming quarters. We should see the buyers start to trickle back in; the sellers, who have already been listing condos like crazy, start to consider selling now as well. Overall, this could be a jolt to the exceptionally slow real estate market.”

Phil Soper, president and CEO of Royal LePage, adds, “Our research indicates that half of sidelined homebuyers in Canada plan to resume their home search plans once the bank rate begins to drop. This will no doubt spark activity and put upward pressure on home prices in the second half of the year.”

And from Ron McMillan, president of Reid’s Heritage Homes (see page 26), “With the announcement on June 5 of BoC’s rate cut, we’re optimistic that buyers will be confident that the market has nowhere to go but up, but we don’t anticipate a buying frenzy just yet.” BoC’s next rate announcement is July 24.

PERSONAL FINANCE | JESSE ABRAMS

Jesse Abrams is Co-Founder at Homewise, a mortgage advisory and brokerage firm based in Toronto. thinkhomewise.com

HOME REALTY | DEBBIE COSIC

Debbie Cosic is CEO and founder of In2ition Realty. She has overseen the sale of more than $15 billion worth of real estate. With Debbie at its helm, In2ition has become one of the fastest-growing and most innovative new home and condo sales companies. in2ition.ca

WESTERN VIEW | MARY-ANNE DAMERCHIE

Mary-Anne Damerchie is Mortgage Broker, Empire Mortgage Group, and a member of the West End HBA Women in Industry Committee. westendhba.ca.

REAL ESTATE PRO | BARBARA LAWLOR

Barbara Lawlor is President and CEO of Baker Real Estate Inc., and an indemand columnist and speaker. A member of the Baker team since 1993, Barbara oversees the marketing and sale of condo developments in Canada and overseas. baker-re.com

DECOR | LINDA MAZUR

Linda Mazur is an award-winning, nationally publicized designer and Principal of Linda Mazur Design Group. With almost two decades of experience this in demand multi-disciplinary design firm is known for creating relaxed, stylish spaces and full-scale design builds within Toronto, the GTA and throughout Canada. lindamazurdesign.com @LindaMazurGroup

STAT CHAT | BEN MYERS

Ben Myers is President of Bullpen Consulting. Ben provides pricing recommendation, product mix, and valuation studies on new residential housing developments for builders, lenders and property owners. bullpenconsulting.ca

TRREB REPORT | JENNIFER PEARCE

Jennifer Pearce, TRREB President, is a Broker and Owner with ReMax Rouge River Realty Ltd., a family owned and operated brokerage. She is a secondgeneration realtor and has been licensed since 2000. trreb.ca

BIG STYLE | LISA ROGERS

Lisa Rogers is Executive Vice-President of Design for Dunpar Homes (dunparhomes.com). Lisa has shared her style and design expertise on popular television programs such as Canadian Living TV, House & Home TV and as a regular guest expert for fashion and image, health and wellness and design on CityTV’s Cityline. Follow Lisa’s blog at craftedbylisa.ca

BILD REPORT | DAVE WILKES

Dave Wilkes is president and CEO of the Building Industry and Land Development Association (BILD), the voice of the home building, land development and professional renovation industry in the GTA. For the latest industry news and new home data, follow BILD on Twitter at @bildgta or visit bildgta.ca

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2024 BILD AWARDS CELEBRATE HOMEBUILDING EXCELLENCE IN GTA

The Building Industry and Land Development Association (BILD) recently recognized excellence in the design, construction, marketing and sales of new homes in the GTA at its 2024 BILD Awards.

BILD presented 49 awards in the categories of architecture, design, marketing, people and sales, and in the prestigious Pinnacle categories. A group of 40 expert judges from across North America determined the winners from over 930 submitted entries.

“The BILD Awards is one of the largest and most prestigious awards programs of its kind in North America,” says Dave Wilkes, BILD

president and CEO. “This year’s finalists and winners exemplify outstanding innovation and showcase the excellence of the building industry in the Greater Toronto Area.”

Alan Menkes, president HighRise Development for Menkes Developments, received BILD’s Lifetime Achievement Award. It is the highest honour BILD can present to a member, recognizing those who have dedicated a lifetime to the association and the industry and demonstrated significant leadership and commitment to the greater good.

Menkes joined Menkes Development in 1976 and very quickly established himself as a respected, trusted and innovative member of the GTA development and homebuilding community.

During Menkes’ tenure, Menkes Development has completed more than 40,000 condominium units and the company is highly regarded today as one of the most trusted builders in Toronto. A philanthropic leader, he serves on the board of the University Health Network Foundation and is a member of the World Presidents’ Organization (WPO).

Brixen Developments was named Homebuilder of the Year, Mid/

Highrise, while OPUS Homes received the title of Homebuilder of the Year, Lowrise. The Homebuilder of the Year categories recognize builders that set the standard for the rest of the industry through their professionalism and dedication to excellence. A key component of the judging process is a customer satisfaction survey, which ensures that the end user’s experience is factored into the award criteria.

The winners of the additional Pinnacle Award categories include:

• Best Advertising Campaign, Paid Media: Freed Hotel & Residences by Freed Developments and Gladstone Media Inc.

• Best Best Midrise Building Design: Lily at Crosstown by Aspen Ridge Homes

• Best Community, Built: The Well by RioCan Living and Tridel

• Best Highrise Building Design and Best New Community, Planned/ Under Development: Elm & Ledbury by Fitzrovia

• Best International Project of the Year: Marylebone Square (London, UK) by Concord Adex/Pacific

• Best Overall Marketing Campaign: Strata by Pureblink

• Best Purpose-Built Rental: FourFifty The Well by RioCan Living

• Green Builder of the Year, Lowrise: Minto Communities

• Green Builder of the Year, Mid/ Highrise: Tridel

• Project of the Year, Lowrise: The Heights of Harmony, Phase II by Minto Communities

• Project of the Year, Mid/Highrise: FourFifty The Well by RioCan Living

In addition, Elm & Ledbury by Fitzrovia received the People’s Choice Award, which is voted by the public.

For a full list of BILD Awards winners, including the winners of the Marketing, People & Sales, and Architectural & Design awards, visit bildawards.com.

BILD President and CEO Dave Wilkes

HOMEBUYERS EXPERIENCE LESS COMPETITION IN MAY: TRREB

May home sales continued at low levels, especially in comparison to last spring’s short-lived pick-up in market activity, as homebuyers continued to wait for relief on the mortgage rate front. Existing homeowners are anticipating an uptick in demand, as evidenced by a year-over-year increase in new listings. With more choice compared to a year ago, buyers benefitted from more negotiating room on prices.

“Recent polling from Ipsos indicates that homebuyers are waiting for clear signs of declining mortgage rates,” says Toronto Regional Real Estate Board (TRREB) President Jennifer Pearce. “As borrowing costs decrease over the next 18 months, more buyers are expected to enter the market, including many first-time buyers. This will open up much needed space in a relatively tight rental market.”

Greater Toronto Area realtors reported 7,013 home sales through TRREB’s MLS system in May 2024 – a 21.7 per cent decline compared to 8,960 sales reported in May 2023.

New listings entered into the MLS system amounted to 18,612 – up by 21.1 per cent year-over- year.

The MLS Home Price Index Composite benchmark was down 3.5 per cent on a year-over-year basis in May 2024. The average selling price of $1.16 million was down by 2.5 per cent over the May 2023 result of $1.19 million. On a seasonally adjusted monthly basis, the average selling price edged up slightly compared to April 2024.

“While interest rates remained high in May, homebuyers did continue to benefit from slightly lower selling prices compared to last year,” says TRREB Chief Market Analyst Jason Mercer. “We have seen selling prices adjust to mitigate the impact of higher mortgage rates. Affordability is expected to improve further as borrowing costs trend lower. However, as demand picks up, we will likely see renewed upward pressure on home prices as competition between buyers increases.”

“In order to have an affordable and livable region over the long term,

we need to see a coordinated effort from all levels of government to alleviate our current housing deficit and to provide housing for new population moving forward,” adds TRREB CEO John DiMichele. “On top of this, governments need to ensure the delivery of infrastructure to support our growing population. The economic health and liveability of our region depends on the timely completion of public transit projects including better transparency and clear timelines on the completion of the Eglinton Crosstown LRT.”

BUILDERS URGE MUNICIPALITIES TO EXERCISE RESTRAINT WITH CHARGES ON NEW HOMES

With the passing of Bill 185, the Cutting Red Tape to Build More Homes Act, 2024, the Building Industry and Land Development Association (BILD) urges GTA municipalities to not raise development charges (DCs) on new homes in the midst of a housing crisis.

“If municipal politicians want to contribute to solving the GTA’s housing supply and affordability issues, they should exercise extreme restraint and not increase development

charges on new homes,” says Dave Wikes, president and CEO of BILD. “Across the province, municipal (upper and lower tier) DCs are the highest fee, tax or charge added by any level of government to the cost of new homes. Increasing DC rates is inflationary to the cost of a new home and can also undermine project viability, preventing projects (and therefore new supply) from coming to the market.”

Development charges are fees added to the cost of a new home by a municipal and regional government. They are intended to offset the costs of growth-related housing supportive infrastructure, transit and services. Over the last two decades, DCs in the GTA have escalated rapidly, rising between 250 and 900 per cent – far in excess of property tax increases.

In many GTA municipalities, these charges average about $100,000 for a single-family home, and in some they approach $150,000.

“There is a growing recognition that the current system of funding

growth related costs places too much burden on the backs of new homebuyers, contributing to making homeownership impossible for many in the GTA,” says Wilkes. “Existing residents also benefit from new and renewed infrastructure and services and there needs to be a frank conversation between all levels of government on a new, fair and equitable system to support growth related costs. Until that can happen, we are calling on all GTA municipalities to hold or indeed lower their DC levels in recognition that we are in the midst of a housing crisis, and now is not the time to be adding more costs to housing.”

Development charges are one of the fees levied on new homes by municipal governments, other fees such as Community Benefit Charges and Parkland Cash-in-lieu fees are also levied. Fees, taxes and charges from all levels of government account for approximately 25 per cent of the cost of a new home in the GTA, BILD says.

BURLINGTON ENDORSES CITY-WIDE DEVELOPMENT CHARGE REDUCTIONS

The City of Burlington’s Committee of the Whole has unanimously endorsed a city-wide development charge reduction. In an unprecedented move across Ontario, Burlington brought forward an approximately $1,500 reduction to the City’s per unit development charge rate (taxes levied on the construction of new housing). This move demonstrates a clear recognition that to address the housing crisis, all levels of government need to reduce taxation and other costs to build new homes.

“The cost of development charges has a significant impact on housing affordability as these taxes are passed onto people buying or renting homes,” says West End HBA (WEHBA) CEO Mike Collins-Williams. “Typically, municipalities increase their development charge rates every five years, however Burlington is showing leadership in a housing

crisis and has decided to do the exact opposite.

“City staff sharpened their pencils looking carefully at their budgets and given the housing crisis deferred collecting development charges on some projects that are unlikely to be built within the next 10 years. Burlington is one of the only municipalities in Ontario that has made this bold and pragmatic decision to lower development

charges in an effort to spur new home construction.”

Burlington has adopted a housing pledge of building 29,000 units over the next 10 years. The proposed development charge reduction signifies Burlington is taking the housing crisis seriously and working in partnership with industry to ensure Burlington is a place where everyone is welcome, WEHBA says.

TRREB APPLAUDS TORONTO’S MOVE TO FACILITATE MORE LOWRISE HOUSING

The Toronto Regional Real Estate Board (TRREB) continues to champion the Expanding Housing Options in Neighbourhoods (EHON) initiative aimed at building more lowrise housing in residential neighbourhoods to meet the needs of our growing city.

“The recent decision by Toronto City Council to allow townhomes and small six-storey residential units with a maximum of 60 units to be built along major roads as-of-right is a big win for housing affordability, says Jennifer Pearce, TRREB president. “Council’s decision builds on a less ambitious original plan to only allow townhomes and small residential

units to a maximum of 30 units on the ‘edges of neighbourhoods’ and along some major roads. The expansion of the original plan to build more homes is a momentous decision that will benefit generations of Torontonians.”

This change will also make Toronto a more equitable and inclusive city by reversing decades of zoning policy that was historically used to prevent the building of more units in existing neighbourhoods, TRREB says.

“For too long, Toronto’s planning policies forced working families and individuals to live on the edges of the city and endure long commutes,” says Pearce. “Council’s decision will help generate more affordable units in

every neighbourhood so that people can live closer to where they work and play.”

LANTERRA CELEBRATES TOPPING OFF AT GLENHILL CONDOMINIUMS IN GLEN PARK

Lanterra Developments earlier this month celebrated the “topping off” of Glenhill Condominiums, with construction reaching the top level of the building.

Glenhill Condominiums is a new iconic Toronto residence coming soon to the Glen Park neighbourhood at the corner of Bathurst and Glencairn. The nine-storey luxury boutique building will include 127 residential suites comprising one-, two- and three-bedroom lavish suites ranging from 800 to more than 5,000 sq. ft.

Condominium residents will have exclusive access to curated services by The Forest Hill Group, such as 24-hour concierge service and a dedicated parcel delivery room. Residents will also have access to exceptional amenity offerings such as the ninth-floor lounge, outdoor pool and rooftop fitness centre. Indoor amenities include a lower-level rejuvenating indoor pool with a hot

tub, wet and dry saunas, treatment room and more.

Designed by the celebrated Arcadis Architects (Canada) Inc, the architecture captures a new world elegance with a robust precast framed podium with elegant cascading balconies on the upper floors. Amenity interiors by acclaimed

GTA BUILDERS SHINE AT

Studio Munge feature exquisite custom flooring complemented by majestic finishes throughout. The project also features a 23-room custom hotel with a premier event space for memorable celebrations. Estimated occupancy is 2025.

glenhill.ca.

2024 CHBA NATIONAL AWARDS FOR HOUSING EXCELLENCE

New home builders, developers and marketers from the GTA and surrounding areas earned their share of hardware at the recent Canadian Home Builders’ Association (CHBA) National Awards for Housing Excellence recently, this year staged in Saint John, NB.

Below is a partial list of GTA winners. For a complete list, as well as an image gallery of all finalists, visit chba.ca/housing awards.

MARKETING AWARDS

Best Signage HIP Developments Inc., Cambridge: Strata Condos with Pureblink

Best Brochure/Kit Emblem Developments Inc., Toronto: ALLURE

with The Brand Factory, Arcadis IBI Group

Best Digital Advertising Campaign

Branthaven Homes, Burlington: West&Post

Best Print Ad Activa, Waterloo: Fur Kids Love Activa Energy Efficient Homes

Best Virtual Tour Experience Tridel, Toronto: Harbourwalk with II BY IV

DESIGN, Pureblink, and The Brand Factory

Best Sales Office ByBurnac, Toronto: The Bedford with The Brand Factory

Best Short Video (under 45 seconds)

Mattamy Homes and Gladstone Media, Toronto: BLVD Q

Best Branding and Identity ByBurnac, Toronto: The Bedford with The Brand Factory

NEW HOME AWARDS

Best Mid- to Highrise Building (Completed) MOD Developments Inc. and Woodcliffe Landmark Properties, Toronto: Waterworks with Cecconi Simone Inc.

NET ZERO HOME AWARDS

Best Production Net Zero Home

Minto Communities Management Inc. and Metropia, Toronto: Union Village with RN Design Ltd., Bluewater Energy Inc., Building Knowledge Canada Inc., and HVAC Designs Ltd.

Marketing Excellence Award

Mattamy Homes and Gladstone Media, Toronto

Image:

Lanterra Developments

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NEWEST PRESIDENT

The GTA new home market has experienced a challenging start to 2024, with April recording a low level of new home sales, second only to

the pandemic-impacted April 2020. According to BILD and Altus Group, there were only 1,105 new home sales in April, marking a 56-per-cent decrease from April 2023, falling 65 per cent below the 10-year average. Condominium apartment sales were down 64 per cent from the previous year and 75 per cent below the 10year average.

The softening pre-construction sales market underscores a critical need for action to boost muchneeded housing supply. Justin Sherwood, senior vice-president of communications and stakeholder relations at the Building Industry and Land Development Association (BILD), emphasized the urgency for government intervention to

balance the market and address the anticipated resurgence in demand. The high interest rates create a critical situation that could lead to an acute housing shortage in two to three years unless measures are taken to increase density and speed up approvals.

Samuel Frum, the new president of Metropia, discussed these challenging conditions on The Toronto Under Construction podcast. A significant point of discussion was the perceived “bubble” in the highrise sector around 2021-22, and how the market is readjusting and resetting price levels. Frum emphasized the resilience and adaptability of the industry. He highlighted Metropia’s success with certain

projects, attributing it to a nuanced approach to underwriting and market assessment, and their quick response to overwhelming demand despite the slow market.

Metropia had the most successful project in terms of sales last year, despite the fact that the GTHA multifamily market faced one of its most challenging years in two decades in 2023. According to Zonda Urban, annual sales were down 36 per cent from the previous year to 14,947.

In order to navigate the current market correction, Frum mentioned that Metropia hired a top sales and marketing executive, reflecting its commitment to infusing fresh ideas and maintaining a competitive edge. Frum emphasizes the importance of investing in multiple asset classes and has been focusing on the low-density market, with end-user demand waiting on the sidelines for the right project and price point.

Partnerships also play a significant role in Metropia’s strategy. Frum looks to leverage the knowledge base, capital and banking relationships of long-standing partners with the proactive pursuit of new partnerships to ensure they take every small advantage in a market where margins have become thinner and buyers have become scarcer.

A recurring theme in the discussion with Metropia, and by industry advocates such as BILD, is the challenge of housing supply and affordability in the GTA. The disparity in construction costs between highrise downtown buildings and suburban townhouses, as highlighted by Altus Group’s construction cost guide data, poses significant challenges. Suburban single-family land is in short supply, and NIMBYs and their political allies continue to demonize condos and highrise apartment living. These actors have lengthened the approvals process and resulted in many projects not making it to market.

Frum’s perspective on housing supply emphasizes the need for a diversified portfolio that includes

various types of housing, from tall towers to detached homes. This diversity is essential for meeting the changing needs of the market and addressing affordability concerns. However, he has seen a change in attitude over the last few years among planning departments, which appear to be more willing to grant higher densities and more floors to proposed apartment projects.

The discussion also touched on the role of investor-owned properties in the new condo market. Frum argues that investors are integral to the development process, providing necessary sales to secure construction financing. He stresses the importance of educating the public on the positive role of investors in increasing housing supply and supporting market stability.

For new-home buyers and investors, understanding these market dynamics is crucial for making informed decisions and capitalizing on the opportunities that lie ahead. Many developers are looking to keep their employees working and engaged and are willing to launch projects with lower starting prices, intent on raising prices aggressively as the project moves forward. There will be opportunities to take advantage of those early deals, but doing your research in advance and understanding market value and future growth prospects will help you make those decisions quickly. Good luck

Ben Myers is the President of Bullpen Consulting, a boutique residential real estate advisory firm specializing in condominium and rental apartment market studies, forecasts and valuations for developers, lenders and land owners. Contact him at bullpenconsulting.ca and @benmyers29 on Twitter.

CENTRAL PARK WHERE THE URBAN AND NATURAL WORLDS CONNECT

NATURE-INSPIRED COMMUNITY IS RISING IN THE BAYVIEW VILLAGE NEIGHBOURHOOD

The Residences at Central Park is a vibrant, master-planned, mixeduse condominium community that is receiving rave reviews. Located in the east end of the prestigious Bayview Village neighbourhood on Sheppard Avenue, Central Park is a nexus between the urban and natural worlds – residents enjoy proximity to a range of urban conveniences and have direct access to the East Don Parkland’s sprawling, forested ravine that embraces the property in lush nature.

The development is one of the largest residential projects currently under construction in Toronto. The first residential building in this 12acre, environmentally sustainable community is sold out. Buyers are responding with enthusiasm for a variety of reasons, including Central Park’s excellent location, forwardthinking Green features, and an array of indoor and outdoor amenities offering lifestyle opportunities for all ages.

The Ontario Home Builders’ Association (OHBA) has awarded Central Park with the coveted Project of the Year Award – People’s Choice. This highly sought-after award recognizes project excellence and is given to a company that exemplifies outstanding professionalism and integrity with their business, their community and the industry at large. “Our project team includes a group of talented consultants including CORE Architects Inc. and II BY IV Design,” says Amexon’s executive sales manager, Jason Shiff.

Central Park is just down the street from Bayview Village Shopping Centre, offering everything from upscale restaurants and retail to lifestyle and wellness venues. Loblaws, Pusateri’s Fine Foods, and Oliver & Bonacini Cafe Grill are just a few of its popular destinations. And getting around the city, the GTA and beyond will be incredibly convenient – the Leslie subway station and relocated Oriole GO station are situated at Central Park, so residents have public transit available right at their front door. In addition, Yorkdale, Fairview Mall, golf courses, parks and other destinations are within easy reach with Hwys. 401, 404 and Don Valley Parkway close by.

At the heart of the community, is the award-winning Central Park Common – a landscaped, threeacre urban park that will resemble a traditional village green. Destined to become a social hub to meet with friends and neighbours, this park will feature pedestrian-friendly streets lined with bike paths, casual dining venues, fountains, reflecting pools, and year-round programming that will include a farmers’ market and iceskating rink. Other highlights include retail space, restaurants and services including on-site daycare facilities.

The East Don Parkland’s 500 acres of lush, urban forest embraces Central Park, making nature a

neighbour and elevating an active lifestyle in this prime Toronto location.

“Central Park is a nature-inspired, upscale community unlike anything else in Toronto,” says Shiff. “Central Park will be a quiet oasis in vibrant urban surroundings, where outdoor lovers are going to be able to immerse themselves in nature all year long. The ravine is part of the Don River Valley parklands where there’s a network of walking and cycling trails to explore that lead all the way downtown. And the trails are beautiful during all four seasons, so residents can enjoy outdoor pastimes to the fullest, such as hiking, biking, birding and crosscountry skiing. The opportunities for a high quality of life in this upscale community are exceptional.”

With environmental sustainability high on the priority list, Central Park has been recognized by the Building Industry and Land Development Association (BILD) as a finalist for the Green Builder of the Year award. The entire community will be constructed to Amexon’s Green Development Standard incorporating industryleading Green features. Setting a new standard in the sustainability arena, Central Park is the first largescale project of its kind in Canada to include EV charging stations

in all parking areas for residents, visitors and office tenants, as well as retail patrons for the restaurants and cafes. All in all, there will be more than 1,500 charging stations installed. Additionally, there will be on-site auto- and bike-share options available. The towers’ design features reflective solar panels that supplement the building’s energy needs, and Green roofs that reduce energy consumption. Thermal building envelopes minimize energy usage and next-generation mechanical systems incorporate advanced airflow and filtration.

The visionary design of Central Park is another attraction for prospective residents. Amexon enlisted an award-winning team to craft what is sure to become a local landmark. CORE Architects has created a striking exterior for the condominium towers that focuses on an intimate connection with nature – the façades feature an organic leaflike design in a continual interplay of sun and shade, and six-ft.-deep balconies offer inspiring views of the Toronto skyline and meandering East Don Parkland ravine through floor-toceiling windows. Central Park’s design features an elegant, hotelinspired, port-cochère entry, with an artisan-designed fountain, original

art installation and lush landscaping by renowned Cosburn Nauboris Landscape Architects. These architectural highlights express a harmonious coexistence between sparkling glass and nature, setting this condominium residence apart as something truly visionary.

Suite and amenity interiors by II BY IV DESIGN are both warm and sophisticated, with modern features and finishes grounded in natural materials and earthy colours. The focus was on capturing the allure and comfort of nature, uniting a love of the outdoors and creative living. The effect is new and fresh, evoking a conception of classic modernism.

All Central Park residents will have the use of 55,000 sq. ft. of fitness, wellness, leisure and social amenity space. A highlight is The Park Club, where fitness enthusiasts can access indoor and outdoor saltwater pools, a state-of-the-art fitness club and half-court basketball. Families are sure to make great use of the screening room/theatre, ice-skating rink, piano lounge, bowling alley,

private event space, hobby studio and kids’ club. Guest suites will be available to accommodate friends and family members.

Among the other leisure-inspired amenities will be rooftop zen gardens, barbecue areas, golf simulator, a yoga studio, recording/media studio and pet daycare/grooming facilities. The Park Club will include a spacious 5,000-sq.-ft. coworking space that will foster networking and productivity for either a hybrid work model or growing your own business, with smart technology, meeting rooms, hot desks and a business centre – giving new meaning to “working from home.”

The community will eventually encompass more than 1,500 suites in one- to three-bedroom plus den layouts, in sizes from 439 to 1,200 sq. ft. Features and finishes include nine-ft.-high ceilings and Europeaninspired kitchen cabinetry by II BY IV DESIGN. Best of all, these living spaces incorporate flow-through layouts that make the most of spectacular views from the floor-

to-ceiling windows and generous outdoor balconies. Prices begin from the $700,000s.

Amexon Development Corp. is one of Toronto’s most prominent and innovative real estate developers, building their reputation as a multi-award-winning firm by delivering superior-quality properties. The firm owns and manages an impressive portfolio of office, retail, industrial, hotel and residential properties.

The Residences at Central Park is a world-class destination that offers a five-star experience and sets new standards in the condominium industry. Amexon’s must-see 10,000-sq.-ft., all-glass Central Park Presentation Centre is located at 1200 Sheppard Ave. E. Indulge in gallery-like surroundings that include kitchen, bathroom and walk-in closet vignettes displaying many of the high-end appointments that come standard here.

Call 416.252.3000 or visit centralparktoronto.com.

TORONTO’S HOUSING AGENDA

UNDER MAYOR OLIVIA CHOW: A YEAR IN REVIEW

JENNIFER PEARCE

As we approach the anniversary of Mayor Olivia Chow’s first year in office, Toronto finds itself at a crossroads of promise and challenge, particularly in the realm of housing.

On a recent episode of TRREB’s Ready to Real Estate podcast, we took a deep dive into Mayor Chow’s inaugural year, examining her achievements, the hurdles she is facing and what lies ahead for Toronto’s housing landscape.

Mayor Chow’s tenure began with a clear mandate: To confront Toronto’s housing crisis head-on.

Throughout her first year, she is making significant strides in expanding affordable housing options and enhancing support for renters. She also successfully negotiated a new deal with the province putting Toronto on a path to long-term financial sustainability, as well as obtaining additional immigration funding from both Premier Doug Ford and Prime Minsiter Justin Trudeau, demonstrating her proactive approach to securing essential resources for the city.

Mayor Chow’s path has certainly not been smooth. A staggering $1.5-billion budget shortfall posed a challenge early in her term. In response, she implemented a 9.5-per-cent residential property tax increase – an ambitious move aimed at funding critical city services and infrastructure projects while navigating financial constraints.

On the episode, TRREB’s Chief Market Analyst Jason Mercer was joined by Matt Elliott, founder of City Hall Watcher, and Steve Adler, senior director of Public Affairs at National Public Relations. They both shared valuable perspectives on Mayor Chow’s performance and highlighted the complexities of governing a city as diverse and dynamic as Toronto, emphasizing the importance of collaboration across all levels of government.

From innovative solutions in affordable housing to advancements in modular homes and purpose-built rentals, her initiatives reflected a comprehensive strategy to address Toronto’s housing needs across the spectrum. There are ongoing challenges and opportunities to

balance development community needs and sustainability.

Listen to the entire conversation and other insightful chats with industry experts, head over to TRREB’s Ready to Real Estate podcast. Stay engaged and informed as we navigate the evolving dynamics of Toronto’s real estate market together.

BANK OF CANADA’S RATE CUT IN JUNE

A SMALL YET HOPEFUL START

The big news in June was that the Bank of Canada reduced its target for the overnight rate to 4.75 per cent. It was the first rate cut since March 2020. Although the Toronto housing market will not change dramatically as a result, it is a hopeful step in the right direction. This reduction of 25 basis points in the policy interest rate may seem small, but it offers a breath of fresh air and diffuses some of the negative energy out there. It signifies hope that this is the beginning of real and badly needed change in the real estate marketplace, and hope is essential when it comes to our economy.

In addition, Canada’s inflation rate is slowly easing toward the two per cent target Bank of Canada would like to see, so again, there is hope for more rate cuts this year. We will likely see many potential home and condominium buyers wait to see what BoC decides. The market in Toronto will not change overnight, but the door has opened, and it brings some relief to borrowers. I don’t think rates will go back down to where we were at during COVID again. I do think that 4.25 per cent by the end of this year is a fair bet.

Our population growth is undeniable. From Oct. 1 to Dec. 31, 2023 (a period of only three months), Canada’s population increased by 241,494 people. This was the

highest rate of growth during a fourth quarter since 1956. This year in March, according to Statistics Canada, our country’s population hit 41 million, with more than 97 per cent of the growth due to immigration. Remember that people always need somewhere to live, whether they are looking to rent or to buy a house or condominium.

The GTA is one of the most coveted residential destinations in the world, and a healthy percentage of immigrants choose to settle here each year. Superior educational facilities, world-class hospitals, incredible shopping, amazing sports, inspiring arts and cultural opportunities… the list of amenities that provide us with the high quality of life that is envied around the world goes on.

Through my decades of industry experience, I have learned that after low economic cycles when the market comes back, it comes back

with a vengeance. There is a massive pent-up demand for houses and condos in Toronto and the GTA – and frankly, across Canada – that will not go away any time soon.

Many of our major clients at Baker Real Estate Inc. are pencilling in launches, and we have some big, exciting projects coming in Toronto. The stage is set for success. Let’s hope that with future announcements, the Bank of Canada takes yet more steps in the right direction.

Barbara Lawlor is CEO of Baker Real Estate Inc. A member of the Baker team since 1993, she oversees the marketing and sales of new home and condominium developments in the GTA, Vancouver, Calgary and Montreal, and internationally in Shanghai. baker-re.com

BARBARA LAWLOR

Birchley Park by Diamond Kilmer Developments

GOVERNMENT POLICIES AND THEIR IMPACT

ON THE GTA PRE-CONSTRUCTION HOUSING MARKET

DEBBIE COSIC

The Greater Toronto Area preconstruction housing market is a vital segment of the real estate industry, playing a significant role in the region’s economy. Government policies, both at the federal and provincial levels, have profound impacts on this market. These policies shape the market dynamics, influencing prices, demand and supply, thereby affecting the broader economic landscape of the GTA.

One of the most significant government interventions in recent years has been the implementation of the mortgage stress test. This requires borrowers to qualify for mortgages at higher interest rates than their contract rate. The policy aims to ensure that borrowers can withstand potential future increases in interest rates, thereby maintaining financial stability. However, the stress test has made it more challenging for many potential buyers to secure financing, reducing the pool of eligible buyers for pre-construction homes. As a result, demand for pre-construction properties has softened, leading to slower sales and in some cases, price adjustments.

Municipal governments in the GTA impose development charges on new construction projects to fund infrastructure improvements and public services. These charges can be substantial, adding significant costs to pre-construction projects.

While development charges ensure that growing communities have the necessary infrastructure, they also contribute to higher prices for new homes. And although these funds are allocated towards infrastructure, there are significant shortcomings in the construction of our infrastructure, hospitals and schools, making us question whether this money is being allocated and utilized in the most prudent manner.

On June 25, a new capital gains tax inclusion rate came into effect. Previously, sellers of secondary properties paid tax on 50 per cent of any capital gains. As of June 25, they will be taxed on 50 per cent of the first $250,000 in gains, and 66.7 per cent on any amount beyond that. This change is raising significant concerns among real estate investors and owners of vacation and secondary properties. The new policy may deter individuals and corporations from investing in business, investment or recreational properties in Canada. It also places a considerable burden on smaller investors, such as families who use investment properties as a retirement savings vehicle or to help their children purchase homes.

Government policies play a crucial role in shaping the GTA preconstruction housing market. While these burdensome interventions such as the mortgage stress test, foreign buyer tax, development charges and capital gains tax aim to ensure market stability and affordability, they also introduce complexities and challenges for developers and buyers. Additionally, land use policies and zoning regulations determine

where and how pre-construction projects can be developed. Stricter zoning laws and slow approval processes can limit the supply of new housing, exacerbating affordability issues in the GTA. Balancing these policies to promote sustainable growth, affordability and financial stability is essential for the health of the pre-construction housing market in the GTA. As the market evolves, continuous assessment and adaptation of these policies will be necessary to address emerging trends and challenges.

THAT PROTECTS YOU A CONSTRUCTION CONTRACT

JAYSON SCHWARZ, LLM AND KELLY WONG, BA

With all the things that go into a renovation project – design plans, importing materials, scheduling dates for completion – the last thing you want to do is read through a complicated construction contract. But did you know that the standard form contracts that are often used to reduce drafting time and transaction costs for home renovations generally do not offer owners adequate protection if something goes wrong?

Standard form contracts, such as those by the Canadian Construction Documents Committee (CCDC) and the International Federation of Consulting Engineers (FIDIC), provide a convenient method for owners, contractors, designers and consultants to get started on a project quickly. These forms cover matters from stipulated price contracts, service contracts between owners and consultants, to rules for mediation and arbitration of disputes. Standard form contracts are well known and understood in the industry, strive towards a balanced allocation of risk, and aim to reduce transaction costs.

However, standard form contracts are rarely used as is. All standard form contracts are open to amendment, to suit the requirements of a project. And the supplementary conditions that are often added by the other party may lead to an offbalance allocation of risk to their benefit. Alterations may also include

the omission of important issues such as termination for convenience, key personnel provisions and liquidated damages. All of these affect an owner’s liability and the recourse available to them in the case of a dispute.

Additionally, different contracts and provisions must be adapted to the particular circumstances of a project. For example, different standard delivery models (more on this in our last issue) align with particular pricing models. Designbuilds with clear design parameters lend themselves to stipulated price models that push almost all the risk to contractors. However, additional provisions must be included to limit an owner’s risk. The possibility of extra costs must be addressed in

the contract, or the owners run the risk of paying exorbitant costs at the completion of the project.

It is essential that you retain a lawyer who understands construction contracts, project delivery models and common pricing models to ensure you are protected in the best way possible throughout your renovation journey.

Jayson Schwarz, LLM is the senior managing partner of Schwarz Law Partners LLP, and Kelly Wong is a secondyear summer student attending Osgoode Hall Law School.

RON MCMILLAN PRESIDENT

REID’S HERITAGE HOMES

by WAYNE KARL

After 45 years in business, Reid’s Heritage Homes recently undertook a brand revitalization to reflect its tradition of innovation, quality and commitment to customer satisfaction.

The move also involves repositioning its construction arm – Reid’s Heritage Construction – to expand

its focus on building midrise residential projects on behalf of other developers, as well as midrise communities internally.

We spoke with Reid’s President Ron McMillan for his insight on this decision, and what else the company has on the horizon.

Let’s start with an easy one: What’s your assessment of the housing market these days? There seems to be more signs of things heating up, with many hoping for the Bank of Canada to drop interest rates, which would help spur activity…

There has been an uneasiness over the past six to eight weeks as homebuyers and investors await some positive news from the Bank of Canada and our politicians. With the announcement on June 5 of BoC’s rate cut, we’re optimistic that buyers will be confident that the market has nowhere to go but up, but we don’t anticipate a buying frenzy just yet.

A lot of your development is in the Greater Golden Horseshoe… how are markets in this area doing these days, compared to those in the GTA or more closely associated with Toronto?

In general, we are seeing the same slowdown as the GTA. As with all real estate, a good location at the right price is still selling but at a much slower pace.

What opportunities exist in the GGH that might not in the GTA, such as more space, bigger lots, mature buyers, more bungalows…?

We are still able to purchase infill acreage, that allows us to build affordable (less than $600,000) medium density townhomes with above-ground parking. With increased development charges and longer approval times, this is getting harder to do in the GGH now, too.

How does the typical buyer profile differ?

Our medium density product is still very popular to the GTA investor in the larger centres such as Guelph, Kitchener and Cambridge. In the smaller centres such as Stratford and Atwood, the buyer tends to be retirees or families with adults working from home.

Reid’s Heritage Homes recently announced a brand refresh after 45 years in business. What’s the genesis, reasoning and opportunity with this, besides the anniversary?

Reid’s Heritage Homes has been a leading homebuilder in the Greater Golden Horseshoe Region for more than 45 years. With the merger of RHC (our construction management division) and Sherwood Homes (northern homebuilder), the time was right to introduce a fresh logo and branding that reflected our continued commitment to innovation and quality.

What does it all entail?

Merging three companies and three leadership teams in less than 12 months was quite an accomplishment. On Jan. 2 of this year, we were able to bring everyone together into our new state-of-the-art 27,000-sq.-ft. head office located in Cambridge, Ont. The synergies between our teams since January has been great and the official rebrand announcement afterwards was the icing on the cake.

Reid’s Heritage Construction will effectively operate as a builder or service provider for other developers… Why did you choose to go down this road?

Reid’s Heritage Construction (RHC) has been operating as a successful construction management division and firm for more than 20 years, and has completed numerous projects for other developers and REITS over the years. The only change now is that RHC will operate as a construction management company under the Reid’s Heritage Homes brand. This effectively gives our construction management team more resources and expertise to draw upon.

on a personal note

Building, supplies, costs, trades availability… these are some of the issues in new home construction these days. How does your new construction unit, or Reid’s itself for that matter, navigate these challenges?

Reid’s Heritage Homes has always believed in building lasting relationships with trades and suppliers and this loyalty has definitely helped us navigate and control some of the uncertainty related to costs and trade availability over the past few years. We are still using some of the trades that our founder, Orin Reid, helped get into business more than 40 years ago.

If you could advise the province, or even Ottawa, on housing policy, what would suggest they do, both now and over the longer term?

Remove development charges (this is an unfair tax for new-home buyers); increase funding to municipalities for infrastructure improvements and upgrades; provide financial incentives (paid work terms) for high school and college students to get into the trades.

What’s next for Reid’s Heritage Homes… what will the company look like at your 50th anniversary?

Our goal is to continue to add more new homes to the Greater Golden Horseshoe market and be a big part of the solution to the current housing shortage in our region. We are very fortunate to have a team of individuals who not only care about what we build but are also extremely passionate about continually moving the needle on building efficiencies and sustainability.

How do you spend your time away from the office?

I spend most of my time with my family – a wonderful wife, a five-year-old daughter and 10-year-old son. The winter is spent in hockey arenas with my son, and dance with my daughter, while the summers are spent in the backyard.

What or who inspires you most?

Most of my inspiration comes from watching the Reid’s Heritage Homes team in action – they really are a fun and engaging group to be around. Watching them grow and excel is the best part of my job.

What do you consider your greatest accomplishment?

Convincing my wife to marry me and having two wonderful children will always be my greatest accomplishments. A close second would be helping to build and assemble the award-winning team here at Reid’s Heritage Homes over the past five years.

What’s on your reading list these days?

Good to Great, by Jim Collins Bluefishing, by Steve Sims

Let my People Go Surfing, by Yvon Chouinard The Power of Conflict, by Jon Taffer

BRANDED RESIDENCES

LUXURY LIVING REDEFINED

TIM NG

In the realm of luxury living, branded residences have emerged as a coveted lifestyle choice, seamlessly blending opulence with exclusivity. Developed by renowned hospitality, luxury or fashion brands, these residences offer an unparalleled level of sophistication and service, elevating the concept of home to new heights.

The sector is experiencing unprecedented growth, with 700 branded residences completed globally and nearly the same number in development, all scheduled to launch by 2030. The appeal of branded residences lies in their ability to marry the prestige of a luxury brand with the comfort and privacy of residential living. For individuals seeking a distinctive lifestyle statement, these properties provide an opportunity to immerse themselves in the world of brands they have built loyalty towards.

What sets branded residences apart is not just the name on the building but the level of integrated service these exclusive properties offer. From meticulously curated spaces by world-class architects and interior designers, to exclusive access to every amenity you can imagine, each aspect is tailored to exceed the expectations of the discerning homeowner. Whether it’s waking up to panoramic views, enjoying spa treatments in your home or having your concierge stock your pantry with your favourite foods from renowned chefs, residents are treated to a lifestyle synonymous with luxury and indulgence.

It was recently announced that the first Ritz-Carlton standalone branded residential development in Canada will be constructed in BC’s Okanagan Valley. But the growth of branded residences is not limited to traditional hospitality brands. Fashion, automotive, culinary and luxury lifestyle brands are venturing into this market, further diversifying the offerings available to buyers, reflecting a broader shift towards lifestyle-driven real estate. Miami and Dubai have become the epicentres of this sector and recently announced projects such as the Bentley Residences and MercedesBenz Places are just a couple that offer this elevated blend of brand, luxury and living.

Standalone residences, particularly those affiliated with a non-hotel brand, will often provide its residents something unique. In Toronto, we have seen this with the launch of the Nobu Hotel and Residences, and more recently, the Freed Hotel & Residences have aligned their luxury residential tower with artwork by renowned Japanese artist Takashi Murakami and the restaurant brand Katsuya.

Looking ahead, the trend towards branded residences shows no signs of slowing down. As luxury brands continue to seek new avenues for expansion and establishing loyalty, the residential sector presents a lucrative opportunity to extend their brand identity and engage with affluent consumers on a deeper level. With the heightened demand, developers are likely to invest further in branded projects, catering to the evolving tastes and preferences of buyers globally. As they continue to redefine the concept of home, these properties are poised to remain at the forefront of the real estate

market, shaping the way we envision and experience luxury in the years to come.

Tim Ng is the Principal and Founder of ADHOC STUDIO and BLACKLINE, an industry-leading digital studio that combines real estate, art and technology. To learn more about ADHOC’s awardwinning renderings and industry leading sales platform, BLACKLINE, visit adhocstudio.ca and blacklineapp.com.

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4 REASONS WHY HOMEOWNERSHIP

REMAINS A SMART INVESTMENT FOR CANADIANS

JESSE ABRAMS

It’s no secret that the Canadian housing market has faced challenges over the past couple of years. Interest rates have risen, inflation has persisted and everything seems more expensive than ever. The good news is that there are signs of improvement. We recently saw a decline in interest rates in June, marking the Bank of Canada’s first rate cut since March 2020. Also, home prices have been declining across the country, making homebuying more palatable for many. Despite the economic conditions, the truth remains that buying a home and investing in real estate continues to be an often smart,

long-term investment for Canadians both personally and financially.

1. GROW YOUR WEALTH THROUGH EQUITY

As a homebuyer, you gain one of the most significant advantages to grow your future wealth – the ability to build equity over time. When you rent, your monthly payments go to a landlord, but with a mortgage, these payments help you contribute to owning a valuable asset. As you continue to pay down your mortgage, the difference between your home’s value and what you owe on it – your equity – increases. Over time, the equity you build can serve as a financial safety net that enables you to borrow against it for major expenses or to fund future investments.

The type of mortgage you get is very important, as it can affect how quickly you build equity and the overall cost of your home. At Homewise, our mortgage advisors spend a great deal of time with Canadians to understand their shortterm and long-term financial goals to ensure they get the right mortgage that suits their vision for their financial future.

2. POTENTIAL FOR PROPERTY VALUE APPRECIATION

While the real estate market experiences ups and downs, Canadian property values have a long history of trending upwards. Although recent years have shown market fluctuations, particularly since the start of the pandemic, the overall trajectory remains positive over the

long term. Owning a home represents a wise long-term investment, with the potential for significant returns when it’s time to sell. The increase in your home’s value can substantially enhance your net worth and offer financial stability for retirement and other important life milestones like a child’s post-secondary education or a vacation property. Important to note, that this is a long-term strategy, not a “get rich quick” situation in most circumstances. As Canada’s population continues to grow, the supply vs demand curve should continue to see home prices rise over the long-term.

3. ACCESS TO TAX BENEFITS

In Canada, owning a home offers several notable tax benefits. For instance, when selling your primary residence, you may qualify for the principal residence exemption, allowing you to avoid capital gains tax. Additionally, various home improvements and energy efficiency upgrades might be eligible for tax credits or rebates, helping to further reduce your overall tax burden. Furthermore, property taxes and mortgage interest can often be

deducted from your tax bill, providing additional financial relief.

If it’s your first home, you also have access to the Home Buyer’s Plan, allowing first-timers to withdraw up to $35,000 from their Registered Retirement Savings Plan to use towards their downpayment. This is all without paying taxes on the withdrawal, provided the funds are paid back within 15 years.

4. MORE STABILITY AND PERSONAL FREEDOM

Owning a home provides significantly more stability compared to renting. As a homeowner, you’re not affected by sudden rent hikes or the possibility of your landlord deciding to sell the property. This stability enables you to make long-term plans, both financially and personally. Additionally, homeownership grants you full control over your living space. You have the freedom to renovate, decorate or landscape your property

according to your preferences and lifestyle, all without needing anyone’s approval.

Despite the challenges in the Canadian housing market, homeownership remains a positive, long-term financial decision. With prices dropping, it could be a good time to start your process of consideration. With benefits such as growing equity, potential property value appreciation, tax advantages and increased stability, owning a home – with the right mortgage –continues to offer a range of financial and personal benefits.

Jesse Abrams is Co-Founder at Homewise, a mortgage advisory and brokerage firm. thinkhomewise.com

LANTERRA DEVELOPMENTS

CELEBRATES 25 YEARS TRANSFORMING THE TORONTO SKYLINE WITH 25 ICONIC PROJECTS

Toronto’s skyline is a canvas of architectural splendor, a testament to the visionaries who have shaped its growth and evolution. Among these visionaries, Lanterra Developments stands out, celebrating 25 years of transforming urban landscapes with an impressive portfolio of iconic projects. Founded by Mark Mandelbaum and Barry Fenton, Lanterra Developments has become synonymous with innovative design, sustainable living and community revitalization, leaving an indelible mark on Toronto’s real estate landscape.

A PARTNERSHIP ROOTED IN INTEGRITY

Lanterra Developments’ story began in 1998 with a simple handshake between Mandelbaum and Fenton. One of their first projects, the acclaimed One Bedford residences, set the stage for a series of transformative developments. “The very first time Barry and I met in person, we became partners,” recalls Mandelbaum. “Before he left the office, we did a financial deal on the Bloor and Bedford property and shook hands – true story.”

This initial partnership, marked by mutual respect and a shared vision, has endured for a quarter-century. Despite their different approaches to business – Mandelbaum focusing on architectural design and marketing, and Fenton on land acquisition and construction –they share a bond of integrity and a passion for urban development. “In our 25 years together, we’ve had only one squabble,” Fenton quips. “And that was about food.”

TRANSFORMATIVE PROJECTS AND ICONIC DEVELOPMENTS

Since its inception with the renowned One Bedford project in 1999, Lanterra Developments has delivered more than 16,000 units across 25 major projects, including captivating multiphase endeavors. Each project reflects their commitment to excellence, from the classical elegance of The Britt to the contemporary chic of Rodeo Drive.

Their portfolio includes 41 landmark buildings, each offering a unique blend of design, functionality and environmental sustainability.

Among their marquee developments are Maple Leaf Square, which spurred the growth of the South Core neighborhood, and the ICE Condominiums, whose twin towers dominate the southern city skyline. 50 Scollard in Yorkville, with architecture by Foster + Partners and interiors by Studio Munge, epitomizes Lanterra’s dedication to creating stylish, livable spaces in landmark locations.

A VISION FOR THE FUTURE

Lanterra Developments is at the forefront of urban revitalization, championing sustainable Green living and cutting-edge environmental technologies. Their projects are more than just buildings; they are vibrant communities that enhance the quality of life for residents and contribute to Toronto’s global reputation as a city of the future. From the charm of 31 Parliament to the style of Teahouse, each development is infused with a distinct perspective and a commitment to excellence.

Looking ahead, Lanterra continues to push boundaries with

current projects on the go, such as Natasha The Residences, Glenhill Condominiums, and Notting Hill. With more than 100 dedicated employees, many team members have been with the company for decades – since its early years. Lanterra is not just a company but a family united by a shared vision.

LEGACY AND IMPACT

As Lanterra Developments celebrates its 25th anniversary, it reflects on a legacy of innovation, integrity and community impact. From their humble beginnings to building one of Toronto’s most prominent developers, Mandelbaum and Fenton have stayed true to their commitment to excellence and transformative urban development.

Their journey is a testament to the power of partnership, vision and dedication. With many more projects on the horizon, Lanterra Developments is poised to continue shaping Toronto’s skyline and building enriching communities for years to come.

For more information about Lanterra Developments and its projects, visit lanterradevelopments.com.

WHAT DO THE INTEREST RATE CUTS

MEAN FOR THE REAL ESTATE MARKET?

For the first time since the onset of the COVID-19 Pandemic, the Bank of Canada on June 5 announced that it would be cutting its overnight interest rate by 0.25 per cent, bringing the policy rate down from 5.0 to 4.75 per cent. This announcement was widely anticipated by the general public, especially by those who work within the real estate industry who have felt the negative impacts of the turbulent economy affecting their businesses, and those who are patiently waiting on the sidelines to enter the market and transact.

With four more scheduled Bank of Canada rate announcements for 2024, the predictions amongst economists are quite aggressive but probable in predicting an additional rate cut per announcement. Although the initial rate cut won’t necessarily boost the economy, it will certainly start to shine some positive light on the housing market as a whole.

Prior to the glimpse of hope we received earlier this month, the inflated interest rate environment created a negative snowball effect impacting those from the development space to home purchasers. Due to the increase in the cost of borrowing, the profitability of development projects has become marginal, and developers have become reluctant to launch future

projects at the rate in which they did in previous years. Additionally, developers are left with an influx of unsold product on their books while purchasers are simultaneously leaving money on the table and walking away from their contractual obligations given the stringent mortgage approval guidelines.

The continued interest rate cut forecast suggests that we will start to notice some relief when it comes to household budgeting and less hindrance on small business growth and prosperity. Although we are not likely to return to a pre-pandemic rate environment and that rates are still relatively higher now than what they have been in previous years, the data supports a downward trajectory, nonetheless.

Like many things in life, perception is the key indicator of individual actions, and when it comes to real estate, it is no different. After a

prolonged period of what seemed to be never ending economic strain taking a negative toll on the real estate market, this recent news has reignited hope among Canadians. It has created some optimism which will likely ramp up real estate transactions, housing initiatives, business development, among many other activities that will assist in economic recovery and stimulus. All signs point towards a fruitful and financially stimulating third and fourth quarters of 2024, along with a strong start to 2025.

Mary-Anne Damerchie is Mortgage Broker, Empire Mortgage Group, and a member of the West End HBA Women in Industry Committee. westendhba.ca

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MARY-ANNE DAMERCHIE

4 TIPS TO COLOUR YOUR WORLD

by LINDA MAZUR

Colour is a major influencer in our world of design. It’s not simply about making a space pretty, we can also use it to invoke an emotional response within a space, to energize or to calm while in the surroundings. Colour can enhance and punctuate a monochromatic space, play up – or downplay – drama in a room, and create a relaxing serene environment. Whatever your goal is in designing a space, colour will surely play a key role.

Whether you enjoy the simplicity of white walls while incorporating colour with your furnishings and accessories, or whether you are drawn to a colour and use it prominently throughout, the trending colours we are seeing will

inspire us to create an exciting home and leave you feeling all the love for colour in your life. Rich jewel tones, deep plums and purples, bright exciting corals and blues, warm pinks and browns, calm earthy greens and cheery yellows… there’s a broad spectrum of possibilities that will inspire you.

Richly patterned fabrics and area rugs, colour saturated tiles and bold wallpapers lend themselves to creating a space with a personality all its own. However, if this all seems a bit too much for you and your comfort zone lies deep within the monochromatic white-on-white look, colour can still find it’s way into your home in the subtlety of artwork, or even the lushness of fresh green

plants. Whatever your heart desires, there is an abundance of ways to colour your world. And… colour can find it’s way into every room in your home – especially the kitchen, where traditional white cabinetry has moved aside for everything from shades of soft and pretty blue-greys to deep blues, greens and reds. However, it’s not just cabinetry that has seen a surge of colour over the last few years, but hardware, faucets and appliances, both large and small, have taken on a life of there own when it comes to colour.

Whether you desire a calm, grounding and comfortable space or are looking for some energy and drama, give your home a little facelift with an inspirationally stylish and sophisticated blend of colour, pattern and texture then sit back, relax and enjoy all the beauty you have created.

HERE ARE A FEW TIPS TO START YOUR COLOUR INSPIRATION:

1| Paint is always a great place to start; any “weekend warrior” can easily liven up a room with a gallon of paint, and when you’ve tired of the colour it’s easy enough to change.

2| Wallpaper is a fun and fantastic way to inject life into your room. With an abundant selection of patterns and colours, you’re sure to make a great impact.

3| Be bold in your selections and use of colour. If you love a particular colour but are unsure, use it in smaller doses as an accent instead of on a larger scale, such as a wall colour.

4| Add a touch of black to your mix, it doesn’t need to be a large item – a black box, vase, picture frame or other accent. This way, you clarify and enhance all the other colours within the space.

@LindaMazurGroup

INTERIOR DESIGN you should AVOID MISTAKES 6

by LISA ROGERS

When it comes to interior design, there aren’t any rules, per se, but there are a few suggestions that homeowners can take into account when designing or redesigning their homes. Interestingly, when we’re online, we’re bombarded with many trends and “must-have” decor that we’re being told to try in our spaces. Yet, we’re rarely given as much intel on what design, decor and decorations to avoid in return. Design errors can be expensive, so I’ve broken down some of the most common design mistakes I’ve seen (or heard of) in my career and how you can avoid them in your interior designs.

NOT MEASURING A ROOM

This is a cardinal rule because it forces us not to make design decisions too spontaneously (such as buying furniture that is either too big or small for a room). Before making a purchase, I implore you to gather the dimensions of each piece first. Never rely on your eye to measure a space (it seldom works). Measure every nook and cranny in a room and map out your area (patiently) before committing to anything.

TOO MUCH FURNITURE

Just having the space does not mean you need to fill it up with furniture. It makes a room feel cluttered, but it can be impractical, too. Filling a room with an overabundance of furniture, as well as accessories, can make the space feel much smaller and less functional. One easy tip: Take stock

of a room you use most often in your home – such as a living room – and question which pieces you use and don’t serve a purpose beyond aesthetic appeal. Any pieces that seem redundant, sell or donate. You want the space to be comfortable and spacious, and that requires, well, space. Too much furniture has the opposite effect.

CHOOSING THE WRONG RUG SIZE

I love the transformational nature of rugs. They can create interest and beauty, and there are so many price points available that you can find the right price for you. It can be tricky knowing the right size of rug for your space. There are some general failsafe rules I’ve followed for years: Living rooms almost always need a carpet that’s either eight-by-10 or nine-by-12 ft. Anything smaller, and it looks awkward and out of place. A rug should be big enough to fit (at least) two chairs or couch legs on it. Alternatively, you can go smaller in functional spaces, such as a kitchen, providing it serves the right purpose. A small rug under bar stools creates a more inviting space to sit.

FORGETTING LIGHTING

It’s surprising how little homeowners invest in thinking about lighting, and it’s one of the essential functions in a space to give ambiance and overall comfort. My advice? Don’t opt for a singular light in one room

and think you’re done – it’s jarring when light is washed over you from overhead. It’s unflattering and can give the feel of an interrogation room at times. Instead, try to layer your lighting. That means that you decide on your central lighting – for your kitchen worktops, mirrors in your bathrooms, or light above your dining table. Then the idea is that you build around that with smaller lighting options, which sets the right vibe and creates that ambiance I speak of. The possibilities are endless: Table lamps, string lights, small pendants, anything that will highlight the areas in the room that may require some warmth. And don’t forget candles. They’re the most affordable and romantic way to set the mood.

TAKING TRENDS TOO SERIOUSLY

We’re bombarded online and via social platforms with seasonal design and decor trends, such as palm prints and wicker furniture. It’s easy to get caught up in the fray and incorporate some of those fun and unique looks into our own homes. Remember: Trends are fleeting, and you don’t want to drain your budget with items that won’t stand the test of time. Never make a design decision flippantly. I always tell people that they need to live in their space before making big purchasing decisions, whether it’s a couch, bed or dining room table. You need to exist in your space to get a sense of how you live in it, and then you can decide what pieces fit your lifestyle and design aesthetic the best.

NOT INVESTING IN QUALITY FURNITURE

One important rule to remember –quality outweighs quantity. While it’s a challenge to live with less furniture, investing in high-quality pieces means

they could potentially last a lifetime, and more significantly, they won’t go out of style. Take your time and shop with a critical eye. Buy the highest quality you can afford, and if you can’t at that exact moment, create a budget plan that means you can for the future. It may take six months to get that beautiful, oversized couch you’ve been eyeing, but it’s surely worth the wait once you have it.

LIVING etc.

by SARA DUCK

Home decor trends and inspiration for summer

Crafted in Montreal, Cozey epitomizes Canadian design brilliance. The furniture — from outdoor seating and accent chairs to sofas and tables — merges functionality with chic aesthetics, ensuring easy assembly and swift doorstep delivery. But the company’s dedication goes beyond style. Sustainability is woven into the fabric of their ethos. Items returned within the 30-day trial period are either meticulously refurbished and discounted or generously donated to charity, minimizing waste and maximizing value for you and the planet.

is trending this summer; turn the page for more!

The blues

You may have noticed that blue is seriously trending right now. From serene sky tones to deep navy accents, this versatile hue adds a timeless touch of sophistication and tranquility to any indoor or outdoor space.

1. Marta ombre blue double old-fashioned GLASS by Azeeza. $9. cb2.ca

2. Blue swirl acrylic PITCHER $12.99. homesense.ca

3. Poolside geo indoor/outdoor RUG in cobalt. $599. westelm.ca

4. Herb PLANTER in chambray. $50. lecreuset.ca

5. Sicily ceramic dinner PLATE in blue. $29. williams-sonoma.ca

6. Navene blue outdoor dining ARMCHAIR. $549. cb2.ca

2 3 4 5 6 1

EXTERIOR MAINTENANCE

Just in time for the outdoor season, Benjamin Moore has launched the Premium Woodluxe Exterior Stain collection with four opacities: Translucent, semi-transparent, semi-solid, and solid. “Staining is a great way to refresh and protect your outdoor wooden surfaces such as decks, furniture and fences for the coming season and beyond,” says Sharon Grech, Benjamin Moore colour and design expert. Woodluxe is easy to apply, and can be used in the heat, sun, and humidity for in a consistent finish that provides a UV and mildewresistant coating. benjaminmoore.ca

Keep busy all summer long with fun games that can be played in your backyard (or local greenspace).

Embrace your inner Ariel (or Sebastian) with these sea-themed accessories for your home.

2 3 1 2 3 4 5

1. Coral-shaped SCULPTURE. $32.

Metal BOTTLE OPENER. $17.

Outdoor CUSHION COVER. $16.

Shell-shaped plant POT. $36.

Stoneware KNOBS. $13 (set of two). hm.com

1. CROQUET in varsity stripe. $90.

2. BEAN BAG toss set. $60.

3. PICKLEBALL set in varsity stripe. $30. indigo.ca

LIT! Breathe easy

As we move into the summer wildfire season, an air purifier at home provides numerous benefits, such as improving indoor air quality and removing airborne pollutants such as dust, pet dander and allergens. Additionally, it helps reduce the risk of respiratory issues, promotes better sleep and creates a healthier environment for you and your family. Breathe easier with the Clorox large room air purifier. Its three-stage 360-degree filtre system, including a true HEPA filtre, captures 99.9 per cent of allergens and particulates and 99.9 per cent of viruses and bacteria. $230. cloroxhomeappliances.ca

Planted is a Canadian candle company focused on minimizing its impact on the planet. Its active botanical line of candles is handmade in small batches using sustainable, toxin-free ingredients. And if that’s not enough, each purchase plants a tree with the Eden Reforestation Project, supporting environmental revival and community upliftment. shopplanted.com

MUST, delivering cutting-edge design inspo and contemporary furnishings, has opened two new stores in the GTA with locations in Toronto and Mississauga. “Our new stores have been designed with diverse urban living in mind, offering a curated furniture selection ideal for various settings like townhouses and compact condos. Our functional and stylish furniture and accessories are inspired by the essence of city living and our customers’ evolving tastes,” explains Émilie Corbeil, product director at MUST. mustsociete.com MUST

FIND YOUR NEXT HOME

BRAMPTON

1. Bristol place 199 Main St, North, Brampton

2. Duo condos Malta ave & Steeles Ave

CALEDON

3. Mayfield Collection 2256 Mayfield Road. Mayfieldcollection.ca

ETOBICOKE

4. Curio Condos 801 The Queensway marlinspring.com

5. Humberwood Heights 50 Humberwood Blvd. tributecommunities.com

6. Arcadia District Bloor & Kipling arcadiadistrict.com

7. Kül Condos 875 The Queensway kulcondos.com

MARKHAM/ UNIONVILLE

8. Panda Markham 8200 Warden Ave. lifetimedevelopments.com

9. Gallery Towers at Downtown Markahm 162 Enterprise Blvd. downtownmarkham.ca

10. Highmount 4077 Hwy. 7 highmountbykingdom.com

MISSISSAUGA

11. Birch at Lakeview Village Lakeshore & Dixie Rd. branthaven.com

12. Artform Condos 86 Dundas St. E. emblemdevcorp.com

13. Exhale Condominiums Lakeshore Rd. East & Dixie Rd. exhalelakeshore.ca

NORTH YORK

14. Central Park Sheppard Ave. East & Leslie St. amexon.com

15. Yonge City Square 4050 Yonge St. yongecitysquare.com

PICKERING

16. Vupoint Kingston Rd. & Liverpool Rd. tributecommunities.com

OSHAWA

17. U.C. Tower 2425 Simcoe St N,Oshawa tributecommunities.com

TORONTO

18. 111 River St. Condos 111 River St. lifetimedevelopments.com

19. Lawrence Hill Urban Towns Don Mills & Lawrence lawrencehillurbantowns. com

20. 489 Wellington St. W. 489 Wellington St. W. lifetimedevelopments.com

21. 500 Dupont St. 500 Dupont St. lifetimedevelopments.com

22. Artistry Condos 292 Dundas St. W. tributeartistrycondos.ca

23. Panda Condos Yonge & Dundas. lifetimedevelopments.com

24. 36 Eglinton Ave. W. 36 Eglinton Ave. W. lifetimedevelopments.com

25. Linx Condominiums Danforth & Main tributecommunicties.com

26. Y&S Condos 2161 Yonge St. tributecommunities.com

27. 50 at Wellesley Station

50 Wellesley St. East pureplaza.com

28. No. 1 Yorkville 1 Yorkville Ave. pureplaza.com

29. Theatre District Residences Adelaide & Widmer pureplaza.com

30. Bijou on Bloor 2450 Bloor St. West pureplaza.com

31. The Briar on Avenue 368 Briar Hill Ave. pureplaza.com

32. One Seventy Spadina & Queen St. West pureplaza.com

33. King West & Charlotte King St. West & Charlotte pureplaza.com

34. Forest Hill Private Residences

2 Forest Hill Rd. foresthillresidences.com

35. Oscar Residences 500 Dupont St. W. at Bathurst oscarresidences.com

36. Kingside Residences Kingston Rd. & Danforth altreedevelopments.com

37. Allure Condominiums 250 King St. East emblemdevcorp.com

38. XO Condos King & Dufferin lifetimedevelopments.com

39. 225 Jarvis Street Condos Dundas St. East & Jarvis amexon.com

40. 101 Spadina Spadina & Adelaide 101spadina.com

41. The Residences of Central Park Sheppard Ave. East & Leslie centralparktoronto.com

42. The Dawes at Main Street Danforth & Main St. thedawes.com

43. Birchaus Birchcliffe Village on Kingston Road birchausresidences.com

44. Knotting Hill 4000 Eglington Ave. W knottinghillcondominiums. com

45. Park Avenue Place 1 & 2

Jane St. & Rutherford Rd. solmar.ca

VAUGHAN

FIND YOUR NEXT HOME

The latest properties in the Southwestern Ontario Area to keep your

BURLINGTON

1. Affinity Condos Plains Rd. E. & Filmandale Rd. rosehavenhomes.com

2. Millcroft Towns Appleby Line & Taywood Dr. branthavenmillcroft.com

3. North Shore North Shore Blvd. & Plains Rd. nationalhomes.com

FORT ERIE

4. Discoverie Condos Signature Communities discoveriecondos.ca

HAMILTON

5. 1 Jarvis 1 Jarvis 1jarvis.com

6. The Design District 41 Wilson Street emblemdevcorp.com

7. Corktown 225 John Street South corktown.condos

NIAGARA

REGION

8. Lusso Urban Towns Martindale Rd. & Grapeview Dr. lucchettahomes.com

OAKVILLE

9. The Greenwich Condos at Oakvillage Trafalgar Rd. & Dundas branthaven.com

10. Synergy McCraney St. E. & Sixth Line branthaven.com

11. Upper West Side at Oakvillage 351 Dundas St. E. upperwestsidecondos2.ca

12. Greenwich Condos at Oakvilage Trafalgar Rd. & Dundas St. branthaven.com

13. Villages of Oakpark Dundas & Trafalgar ballantryhomes.com

STONEY CREEK

14. Casa Di Torre 980 Queenston Rd. branthaven.com

15. On The Ridge Lormont Blvd. & Chaumont Drive liveontheridge.ca

FIND YOUR NEXT HOME

CONDO PROFILES

Duo Brampton

developer: NATIONAL DEVELOPMENTS AND BRIXEN DEVELOPMENTS INC.

style: Highrise size: 26 storeys

features: • 1 bed, 1 bed + den, 2 bed, 2 bed + den

• Lobby, Gym, Co-Working Space

• Kids Playroom, Party Room, Private Dining Room With Catering Kitchen

• Rooftop with BBQ’s, Flex Lawn, Dining and Lounge Areas register at: duocondos.ca

location: Steeles Ave. W and Malta Ave. just west of Hurontario First Release is Sold Out. New Release Now Selling.

Branthaven Mississauga

developer: BRANTHAVEN

project name: High Line Condos

style: Six Storey Mid-Rise

features: 205 Condos

prices from: Low $600s

features: • The First Development in the Mississauga’s Ninth Line Corridor expansion

• Next Door to the protected forest of Churchill Meadows

• Fully furnished indoor and outdoor amenities designed by II BY IV DESIGN

• Rooftop terrace, fitness facility, dining/social lounge, media/games lounge and pet spa

• BH Home TechnologyTM , a Smart Home solution providing integrated building/home access and control system

• 1 Bedroom, 1 Bedroom + Den, 2 Bedroom & 2 Bedrooms + Den Suites Available

contact: Branthaven.com

location: Ninth Line, Mississauga

Central Park North York

developer: AMEXON DEVELOPMENT CORPORATION

style: Highrise – 12-acre, master-planned community size: 436 - 1,200 sq. ft.

prices from: from the $700,000s

features: • 1 Bed, 1 Bed+Den, 2 Bed, 2 Bed+Den, 3 Bed+Den

• Spacious layouts, terraces/balconies

• Located in the Bayview Village neighbourhood

• Leslie subway station and GO Transit at your door

• Direct access to the East Don Parkland ravine

• Central Park Common – a three-acre urban park offering year-round, outdoor event programming

• 55,000 sq. ft. of resort-style amenities including coworking space, skating rink, indoor and outdoor saltwater pools, privately operated childrens’ daycare, EV charging stations in all parking areas

contact: centralparktoronto.com • (416) 252-3000

location: 1200 Sheppard Avenue East

875 The Queensway Toronto

developer: EQUITON DEVELOPMENTS

style: Boutique, 11- Story, Midrise

size: 328 to 1,024 sq. ft.

prices from: From $400,000s

features: Conveniently located on The Queensway, minutes to everything. Steps away from shops, restaurants, schools, parks, Go Train and TTC. Easy 15-minute commute to downtown Toronto. Curated, Scandinavian-inspired amenities include: Rooftop Party Room, Private Dinning, Outdoor Yoga & Meditation Zone, Quiet Lounge Zone, Alfresco Dining & BBQ Area Outdoor Lounge Area with Fireplace, Fitness Centre, Nordik Wellness Room with Infrared Sauna & Cold-Water Immersion & Resting Area, Entertainment & Games Room, Connectivity Lounge, Kids Zone, Pet Spa, Pet Relief Area, Parcel Room and Luxurious Lobby

contact: equitondevelopments.com

location: 875 The Queensway, Toronto

DISSECTING WHAT’S BEHIND PERSISTENT HIGH PRICES

– AND WHAT GOVERNMENTS SHOULD DO ABOUT IT

As we approach the second half of 2024, the housing landscape and new home prices in the Greater Toronto Area (and Canada broadly) continue to be surprisingly resilient in the face of economic headwinds. Despite historical trends suggesting a downturn in housing prices following periods of high inflation and interest rates, recent prices have moderated somewhat, but have largely defied the expected convention. Here are some of the factors behind it.

In the past 18 months, interest rates have surged to unprecedented levels, while sales of new homes have dwindled to half or less of the 10-year average. Although prices have moderated since their peak in 2022, with some types and locations experiencing a 10- to 15-per-cent decrease, the decline falls short of historical expectations. Why is this happening?

Firstly, the availability of shovelready serviced land within municipal boundaries in the GTA is scarcer today than in the past. Unlike previous cycles and due to current supply and demand, there is less room for the prices of new land to decrease.

Secondly, fixed-rate municipal charges (such as development charges) now constitute a larger proportion of new home costs. In many GTA municipalities, these charges can average between $100,000 to $150,000 for a single-

family home and are going up, not down, contributing as an inflationary pressure to the cost of a new home.

Thirdly, the cost to build has seen a dramatic escalation. Between 2019 and the end of 2023, in Toronto, there was a staggering 98.3-percent increase in single-family home construction costs and a 74.1-per-cent increase in apartment construction costs. Looking nationally, using an 11-city sample, these figures were 69.1 per cent and 54.2 per cent, respectively. This surge is attributed to widespread rises in material and labor expenses, making significant price moderation unlikely without a substantial reduction in construction costs.

Lastly, the cost of capital remains much higher than in the previous decade. It is likely that we will see a prolonged period of higher interest rates for longer when it comes to the cost of capital – which further exerts upward pressure on costs as access to capital is vital for financing construction projects.

To turn the impossible into the possible and solve the affordability challenges confronting the current housing market requires a multifaceted approach. Governments

must prioritize measures such as controlling the additional charges imposed on new housing, expanding available land for development and increasing density allowances to maximize land use efficiency and spread costs. And, of course, governments should continue to focus on the fundamentals to streamline approval processes and remove unnecessary barriers to new housing construction.

While historical precedents offer insights, the current landscape calls for a targeted approach to tackle the aforementioned root causes. By addressing these and renewing their focus on the fundamentals, only then will policymakers succeed in addressing affordability.

Dave Wilkes is President and CEO of the Building Industry and Land Development Association (BILD), the voice of the homebuilding, land development and professional renovation industry in the GTA. For the latest industry news and new home data, follow BILD on Twitter, @bildgta or visit bildgta.ca.

DAVE WILKES

T HE V IL LA GE F AR M HAS TO OFF ER!

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Nick Pope

Sales Representative

REVEL Realty Inc., Brokerage nickpope@revelrealty.ca

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