MARKET OVERVIEW IN OTTAWA, CANADA
The Ottawa market has been fairly flat, this year, however, sales of condominiums and single-family homes are up significantly. Unlike the Vancouver and Toronto housing markets, where rapid home-price growth has stoked fears of a housing bubble in recent years.
Ottawa’s kind of a funny market in that it operates on an island by itself, because the government sector is so big there.
The condo market had been particularly soft since about 2011, because of a glut of new construction. But that surplus is now being rapidly absorbed.
According to the Ottawa Real Estate Board, single-family sales were up 6.6 % over last year, and the average sales price was up 7.2 %.
They’ve had a record number of condos that have sold this year for over $1 million.
The Ottawa neighbourhoods commanding the highest prices are Rockcliffe Park and the Glebe, well-established blue-chip communities close to downtown. Westboro, on the Ottawa River, has become especially trendy as development there has boomed,,
The majority of foreign buyers are Chinese investors. The revenue side of it doesn’t seem pressing for them.
Earlier this year, the province of Ontario instituted a 15 percent tax on non-resident buyers in the greater Toronto area, in hopes of cooling speculative activity and price increases in what many perceived as an overheated market. The tax does not apply to Ottawa, however, which could bring more foreign buyers to the city.
[from NY Times]