CANADA INTERNATIONAL GATEWAY · 6 CANADA: INTERNATIONAL GATEWAY GUIDE CANADA ECONOMIC FACTORS...

CANADA IN T E RN AT I O N A L G AT E WAYL E V E R A G I N G I N N O V A T I O N , E X P E R I E N C E & I N T E R N A T I O N A L I M P A C T

2 CANADA: INTERNATIONAL GATEWAY GUIDE

SOTHEBY'S INTERNATIONAL REALTY CANADA We are a proudly Canadian national boutique brokerage, with multiple offices in Canada’s major cities of Toronto, Montreal, Vancouver and Calgary. We are also located in other popular locations such as Victoria, Salt Spring Island, Whistler, Lion’s Bay, North Vancouver, West Vancouver, Kelowna, Sun Peaks, Canmore, Oakville, Niagara-On-The- Lake, Ottawa, Mississauga, Muskoka, Creemore, Caledon, Mont-Tremblant, Knowlton, West Island Montreal, and Quebec City.

We are proud to serve you with an experienced team of real estate, marketing and financial professionals committed to providing you with superior service, expertise and the highest ethical standards in the industry. Services All offices provide full brokerage services for both residential listing and buying clientele. Our agents are specialized in assisting international real estate clients, whether they are moving to Canada or investing from abroad. Offices provide services in a number of different languages. Please check with individual offices to confirm languages available at specific locations.

2 O F F I C E S

ALBERTA

1 1 O F F I C E S

BRITISH COLUMBIA

1 2 O F F I C E S

ONTARIO

QUEBEC7 O F F I C E S

SOTHEBYSREALTY.CA 33 CANADA: INTERNATIONAL GATEWAY GUIDE

THE BRAND HERITAGE – AUCTION HOUSESince the founding of Sotheby’s Auction House in 1744, the Sotheby’s name has earned renown as a marketer of the world’s most valuable and prestigious possessions.

As the first international auction house and the oldest company listed on the New York Stock Exchange, Sotheby’s now has 90 locations in 40 countries and 9 salerooms around the world. With private sales galleries in New York, Hong Kong and London, Sotheby’s conducts some 250 auctions a year in more than 70 categories. This reputation is built as much upon exceptional service to clients as it is on the notable art, antiques, jewelry and other holdings that pass through Sotheby’s offices around the world.

O U R A S S O C I A T I O N W I T H T H E S O T H E B Y ’ S B R A N D I S T R U L Y W H A T S E T S U S A P A R T B E C A U S E I T I S M O R E T H A N J U S T A N A U C T I O N H O U S E . I T ’ S T H E U L T I M A T E D E S T I N A T I O N W H E R E C O L L E C T O R S G A T H E R T O I N D U L G E T H E I R D E S I R E S A N D S H A R E T H E I R K N O W L E D G E . E N V I R O N M E N T S T O C O N N E C T W I T H T H E M .


NETWORK STRENGTH – GLOBAL PRESENCESotheby’s International Realty® Affiliates LLC is a subsidiary of Realogy Holdings Corp. (NYSE: RLGY), a global provider of real estate services. In February 2004, Realogy entered into a long-term strategic alliance with Sotheby’s, the operator of the auction house.

Today, the Sotheby’s International Realty luxury real estate network continues to expand worldwide, with offices in luxury markets, metropolitan areas and destination communities around the world.

Referrals Helping you to navigate the world of real estate is what truly helps set us apart. Another differentiator is our ability to connect buyers and sellers globally. Our referral system boasts hundreds of “connections” per month coming from two channels – realty and auction. With a dedicated liaison stationed at the Sotheby’s Auction House and the realty corporate headquarters, we are able to help unite thousands of buyers with the properties our network represents.

M O R E T H A N 2 1 , 0 0 0 A S S O C I A T E S W I T H 9 6 0 O F F I C E S I N O V E R 7 2 C O U N T R I E S

CANADA ECONOMIC FACTORSC A N A D A : I N T E R N A T I O N A L G A T E W A Y G U I D E


CANADA ECONOMIC FACTORS

29,720 VANCOUVER

81,375 TORONTO

21,435 CALGARY

44,235 MONTRÉAL

296,380 NEW IMMIGRANTS ANNUALLY6

5.7%

+8.1

$0.81

1.25%

1.7%

U N E M P L O Y M E N T R A T E 1

December 2017

I N D E X O F C O N S U M E R C O N F I D E N C E 2

August 2017 Conference Board of Canada

Highest Level Since November 2007

U S / C A N A D A E X C H A N G E R A T E 3

Low Canadian Dollar

B A N K O F C A N A D A K E Y O V E R N I G H T I N T E R E S T R A T E 4 January 2018

A N N U A L I Z E D G D P G R O W T H R A T E 5

3rd Quarter

1 Statistics Canada, December 20172 Conference Board of Canada, August 20173 Canada / US Exchange Rate: $0.79 USD as of January 20184 Bank of Canada Key Overnight Interest Rate Retreived January 20185 Statistics Canada, Annualized Gross Domestic Product (GDP) - 3rd Quarter 2017 6 Statistics Canada Admissions of Permanent Residents by Province/Territory and Census Metropolitan Area of Intended Destination (2016 Ranking)

SOTHEBYSREALTY.CA 7

CANADA ECONOMIC FACTORS 2 0 1 5 P E R M A N E N T R E S I D E N T B Y P R O V I N C E O R T E R R I T O R Y & S O U R C E A R E A 1

1 Statistics Canada - 2015 Permanent Residents by Province or Territory & Source Area,

Canada Permanent Resident by Province & Source Area, 2015

0 10 20 30 40 50 60 70 80 90 100

Source Area Not Stated

Stateless

United States

Europe

Asia and Pacific

Americas

Africa & Middle East

Yukon

Nunavut

Northwest Terrotories

British Columbia

Alberta

Saskatchewan

Manitoba

Ontario

Quebec

New Brunswick

Nova Scotia

Prince Edward Island

New Foundland & Labrador


SIRC / JUWAI HOMEBUYER INSIGHTS1

Juwai.com and Sotheby’s International Realty Canada data and market insights revealed the following key trends:

Education and personal use are the leading motivations

Juwai.com data and Sotheby's International Realty Canada market insights clearly indicated that personal use was an implied or explicit motivation for Chinese interest in Canada's largest cities:

• Education was the most commonly cited motivation for Chinese interest in Toronto, Vancouver and Montreal, followed by "own use".

• The single highest motivation for Juwai.com property enquirers interested in Calgary real estate was "own use", at 62%.

• 27% of Toronto and Vancouver enquirers, and 23% and 21% of Montreal and Calgary enquirers, indicated that investment was a motivation.

Demand for conventional housing outweighs luxury demand:

Chinese homebuyers have been credited as an influential segment of purchasers within the Canadian luxury real estate market; however, Juwai.com data dispels the notion that their interest is limited to the high-end segment. Property enquiry data from Juwai.com indicates:

1 China to Canada: International Home Buyer Insights Report, Released March 2017. Source Juwai.com and Sotheby's International Realty Canada

• 57% of Juwai.com property enquiries in Vancouver, 67% in Calgary, and 68% in both Toronto and Montreal fell below $655,050 ($500,000 USD) in 2016.

• The median prices for Juwai.com property enquiries were within the range of, and in some cases, significantly below the average sale price of residential real estate within the market.

Metro Vancouver foreign buyers' tax shifts market sentiment:

The implementation of a 15% provincial property transfer tax on foreign nationals, corporations and trusts buying Metro Vancouver real estate introduced local consumer uncertainty and accelerated market moderation. The impact of the tax on property interest in major Canadian cities was swift:

• Vancouver listings enquiries on Juwai.com fell 81% year-over-year in July 2016, the month the foreign buyers' tax was announced, and 78% year-over-year in August when the tax took effect.

• Interest from prospective real estate purchasers redirected into other major Canadian markets in the months immediately following the tax's implementation.

• Sotheby's International Realty Canada experts observed that increased interest from Chinese property enquirers did not result in matching surges in sales activity from this cohort in alternative markets.

SOTHEBYSREALTY.CA 9

Interest in $1 million-plus real estate comparatively resilient to policy shifts:

C A N A D A' S T O P -T I E R R E A L E S T A T E M A R K E T H E L D S T E A D F A S T I N F A C E O F E X T R E M E C H A N G E S B R O U G H T A B O U T B Y H O U S I N G A N D M O R T G A G E P O L I C Y S H I F T S A N D R I S I N G I N T E R E S T R A T E S .

• In Vancouver, the lull in top-tier sales activity following the August 2016 introduction of the 15% property transfer tax on foreign buyers began to recover in the latter half of 2017. Overall, $1 million-plus residential real estate sales decreased by 5% from 2006 and the $1 million-plus condominium market surpassed previous records with a 27% year-over-year increase in sales volume.

• In the wake of the April 2017 introduction of the Ontario Fair Housing Plan, market confidence and top-tier sales activity trended downward across the Greater Toronto Area in the latter half of the year. Despite this $1 million-plus residential real estate sales still maintained 2016's historic highs, with a nominal 5% year-over-year increase in sales volume and the top-tier condiminium market led the market in percentage gains, with $1 million-plus sale up 59% over 2016.

• Underlying changes in housing supply, demographic trends and consumer expectations ignited unprecedented performance in the top-tier condominium and attached home segments of Toronto, Vancouver and Montreal. The Calgary Market also gained ground as economic recovery continued in the city.

Canada Real Estate Market Performance:

Government Policies to Cool the Housing Market

• Mortgage Stress Testing

• Higher Down Payments

• Higher Low Ratio Interest Rates

• Closed loop-hole on Capital Gains Tax rules for non-residents

• Non-resident Tax (Vancouver & Toronto Only)


CANADA ECONOMIC FACTORS1

CA N A DA R E S I D E N T I A L S A L E S / U N I TS

1 Canadian Real Estate Association, (CREA), Canada Sales Volume & Average Prices 2008 – 2017

0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2017201620152014201320122011201020092008

CANADA RESIDENTIAL AVERAGE PRICES 2008 - 2017SOURCE CREA

$510,179 Average Price

0

100,000

200,000

300,000

400,000

500,000

600,000

2017201620152014201320122011201020092008

CANADA RESIDENTIAL SALES VOLUME 2008 - 2017SOURCE CREA

514,437 Unit Sales

514,437 Unit Sales

CA N A DA R E S I D E N T I A L AV E R AG E P R I C E S

0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2017201620152014201320122011201020092008

CANADA RESIDENTIAL AVERAGE PRICES 2008 - 2017SOURCE CREA


0

100,000

200,000

300,000

400,000

500,000

600,000

2017201620152014201320122011201020092008

CANADA RESIDENTIAL SALES VOLUME 2008 - 2017SOURCE CREA

514,437 Unit Sales


BRITISH COLUMBIA ECONOMIC FACTORSC A N A D A : I N T E R N A T I O N A L G A T E W A Y G U I D E


BRITISH COLUMBIA ECONOMIC FACTORS

A V E R A G E P R I C E 5

DEC 2017 DEC 2016 YEAR TO YEAR

$733,744 $654,699 12.1%


December 2017, Statistics Canada


February 2017 Conference Board of Canada

N E W P E R M A N E N T R E S I D E N T S I N 2 0 1 6 3

Statistics Canada

G R O S S D O M E S T I C P R O D U C T 4 2016

1 Statistics Canada, December 20172 Feb 2017 Conference Board of Canada3 Statistics Canada Admissions of Permanent Residents by Province/Territory & Census Metropolitan Area of Intended Destination (2016 ranking)4 Staticics Canada - Gross Domestic Product by Industry - British Columbia 20165 Canadian Real Estate Association, (CREA), Canada Average Price Comparison December 2016/2017

+3.7%

4.6%

+2.3

38,070

SOTHEBYSREALTY.CA 13

1

1 Canadian Real Estate Association, (CREA), British Columbia Sales Volume & Average Prices 2008 – 2017

0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

2017201620152014201320122011201020092008

BC RESIDENTIAL AVERAGE PRICES 2008 - 2017SOURCE CREA


0

20,000

40,000

60,000

80,000

100,000

120,000

2017201620152014201320122011201020092008

BC RESIDENTIAL SALES VOLUME 2008 - 2017SOURCE CREA

103,768 Unit Sales

B R I T I S H C O L U M B I A R E S I D E N T I A L S A L E S / U N I T S

103,768 Unit Sales

0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

2017201620152014201320122011201020092008

BC RESIDENTIAL AVERAGE PRICES 2008 - 2017SOURCE CREA


0

20,000

40,000

60,000

80,000

100,000

120,000

2017201620152014201320122011201020092008

BC RESIDENTIAL SALES VOLUME 2008 - 2017SOURCE CREA

103,768 Unit Sales

B R I T I S H C O L U M B I A R E S I D E N T I A L A V E R A G E P R I C E S



BRITISH COLUMBIA COMMUNITIES Greater Vancouver

Surrounded by snow-capped mountains and evergreen forests, and bordered by beaches that hug city and ocean, British Columbia’s Greater Vancouver region offers a balance of nature and city. It embraces a diversity of cultures and communities, and plays a pivotal role as North America’s Asia Pacific gateway. It’s no wonder people from around the world seek to move here and that the Greater Vancouver real estate market has captivated the interests of global investors.


Dec 2017 Dec 2016 Year to Year

$1,050,300 $906,500 15.9%

Vancouver: Efforts to cool the market2

• Foreign Buyer’s tax implemented

• Vacancy tax implemented

1 Canadian Real Estate Association, (CREA), Greater Vancouver Average Price Comparison Dec 2016/20172 Canadian Real Estate Association, (CREA), Greater Vancouver Sales Volume / Average Prices 2008 – 2017

0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

2017201620152014201320122011201020092008

GREATER VANCOUVER RESIDENTIAL AVERAGE PRICES 2008 - 2017SOURCE CREA

$1,031,546 Average Price

0

10,000

20,000

30,000

40,000

50,000

2017201620152014201320122011201020092008

GREATER VANCOUVER SALES VOLUME 2008 - 2017SOURCE CREA

36,604Unit Sales

G R E AT E R VA N C O U V E R R E S I D E N T I A L S A L E S / U N I TS 2

G R E AT E R VA N C O U V E R R E S I D E N T I A L AV E R AG E P R I C E S 2

0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

2017201620152014201320122011201020092008

GREATER VANCOUVER RESIDENTIAL AVERAGE PRICES 2008 - 2017SOURCE CREA


0

10,000

20,000

30,000

40,000

50,000

2017201620152014201320122011201020092008

GREATER VANCOUVER SALES VOLUME 2008 - 2017SOURCE CREA

36,604Unit Sales


36,604 Unit Sales


G R E AT E R VA N C O U V E R TO P-T I E R M A R K E T P E R FO R M A N C E 3

# o f U n i t s S o l d $ 1 - 2 M $ 2 - 4 M $ 4 M +

Total 2017 2,803 1,097 382

Jul 1- Dec 31 2017 1,296 430 171

Jan 1 - Jun 30 2017 1,507 667 211

Total 2016 2,586 1,356 573

Jul 1- Dec 31 2016 889 381 134

Jan 1 - Jun 30 2016 1,697 975 439

A v g . # o f D a y s o n M a r k e t f o r S o l d s $ 1 - 2 M $ 2 - 4 M $ 4 M +

Jul 1- Dec 31 2017 25 33 61

Jan 1 - Jun 30 2017 27 31 51

Jul 1- Dec 31 2016*

27 29 49

Jan 1 - Jun 30 2016 20 22 37

% o f H o m e s S o l d O v e r L i s t P r i c e $ 1 - 2 M $ 2 - 4 M $ 4 M +

Jul 1- Dec 31 2017 29.24% 17.67% 9.94%

Jan 1 - Jun 30 2017 36.56% 26.84% 13.74%

Jul 1- Dec 31 2016 24.97% 26.25% 17.91%

Jan 1 - Jun 30 2016 29.52% 46.26% 31.66%

3 Top Tier Report 2017 - Year-End Report - sothebysrealty.ca Blog Post - January 10th, 2018

1


Sun Peaks

Just 45 minutes from Kamloops in the interior of British Columbia, Sun Peaks is a family-friendly, four-season destination with three mountain peaks— Tod Mountain, Sundance Mountain and Mount Morrisey. With incredible access to downhill skiing, snowboarding and cross-country skiing in the winter, and hiking, golfing and mountain biking in the summer, the resort’s appeal to real estate buyers has expanded with its recognition as one of North America's top resorts.

Saltspring Island

Salt Spring Island is the largest and best known of British Columbia's Gulf Islands. With its sheltered coves and seaside communities, and its rolling farmland, mountain peaks, lakes and forests, the island has a natural, bohemian spirit that has made it an attractive destination for vacationers, retirees and those seeking an alternative to urban living—and to urban real estate investment.

BRITISH COLUMBIA COMMUNITIESVictoria

As the capital city of British Columbia, Victoria is known around the world for its heritage architecture, stunning gardens, spectacular West Coast beauty, and for having one of the mildest, year-round climates in Canada. From young families desiring safe and friendly neighbourhoods, to seniors seeking an active retirement lifestyle, to students attending acclaimed universities, Victoria draws many who wish to call this temperate island home.

Kelowna

Kelowna is the largest city in the Okanagan Valley, situated on the 135-kilometre long Okanagan Lake and in the Sonora Desert where residents enjoy long warm summers and short mild winters. The city is renowned for its world-class wineries, golf courses and sandy beaches, making it a popular destination for outdoor enthusiasts, retirees and beach-goers alike.

Whistler

Located in British Columbia’s spectacular Coast Mountains, Whistler is one of North America’s premier four season resorts, internationally renowned as the site of the alpine and Nordic venues for the Vancouver 2010 Olympic and Paralympic Games. Its epic skiing and snowboarding, vibrant alpine village and majestic mountains haven’t just captured the attention of visitors— Whistler real estate has also attracted buyers and real estate investors from across British Columbia and around the world.

ALBERTA ECONOMIC FACTORSC A N A D A : I N T E R N A T I O N A L G A T E W A Y R E P O R T


ALBERTA ECONOMIC FACTORS



$380,316 $395,694 -3.9%






Statistics Canada


1 Statistics Canada, Alberta - December 20172 Feb 2017 Conference Board of Canada3 Statistics Canada Admissions of Permanent Residents by Province/Territory & Census Metropolitan Area of Intended Destination (2016 ranking)4 Staticics Canada - Gross Domestic Product by Industry - Alberta 20165 Canadian Real Estate Association, (CREA), Alberta Average Price Comparison: Update dates to Dec 2016/2017

6.9%

+8.2

49,200

-3.8%


1

1 Canadian Real Estate Association, (CREA), Alberta Sales Volume & Average Prices 2008 – 2017

A L B E R T A R E S I D E N T I A L S A L E S / U N I T S

0

$100,000

$200,000

$300,000

$400,000

$500,000

2017201620152014201320122011201020092008

ALBERTA RESIDENTIAL AVERAGE PRICES 2008 - 2017SOURCE CREA


0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2017201620152014201320122011201020092008

ALBERTA RESIDENTIAL SALES VOLUME 2008 - 2017SOURCE CREA

57,170 Unit Sales

A L B E R T A R E S I D E N T I A L A V E R A G E P R I C E S

0

$100,000

$200,000

$300,000

$400,000

$500,000

2017201620152014201320122011201020092008

ALBERTA RESIDENTIAL AVERAGE PRICES 2008 - 2017SOURCE CREA


0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2017201620152014201320122011201020092008

ALBERTA RESIDENTIAL SALES VOLUME 2008 - 2017SOURCE CREA

57,170 Unit Sales


57,170 Unit Sales


ALBERTA COMMUNITIES Calgary

Set in the foothills of the Rocky Mountains at the intersection of the Bow and Elbow rivers, Calgary, Alberta exudes innovation, energy and a uniquely Western Canadian hospitality. As the largest metropolitan area between Vancouver and Toronto, Calgary is home to over 1.1 million people. It’s a global energy leader and a welcoming frontier for business and investment, which has helped the robust Calgary real estate market expand rapidly.

AV E R AG E P R I C E 1


$427,400 $429,100 -0.4%

Canmore

Nestled in Alberta’s scenic Bow River Valley and surrounded by the Canadian Rockies, Canmore is a popular vacation destination, renowned for its spectacular mountain scenery and myriad opportunities for outdoor recreation. Once a humble mining town, Canmore debuted on the world stage when it hosted the Nordic events for the Calgary 1988 Olympic Winter Games. Today Canmore real estate attracts investors from across Alberta, North America and the world.

1 Canadian Real Estate Association, (CREA), Calgary Average Price Comparison December 2016/20172 Canadian Real Estate Association, (CREA), Calgary Sales Volume / Average Prices 2008 – 2017

0

$100,000

$200,000

$300,000

$400,000

$500,000

2017201620152014201320122011201020092008

CALGARY RESIDENTIAL AVERAGE PRICES 2008 - 2017SOURCE CREA


0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2017201620152014201320122011201020092008

CALGARY SALES VOLUME 2008 - 2017SOURCE CREA

23,869Unit Sales

CA LG A RY R E S I D E N T I A L S A L E S / U N I TS 2

23,869 Unit Sales

CA LG A RY R E S I D E N T I A L AV E R AG E P R I C E S 2

0

$100,000

$200,000

$300,000

$400,000

$500,000

2017201620152014201320122011201020092008

CALGARY RESIDENTIAL AVERAGE PRICES 2008 - 2017SOURCE CREA


0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2017201620152014201320122011201020092008

CALGARY SALES VOLUME 2008 - 2017SOURCE CREA

23,869Unit Sales



# o f U n i t s S o l d $ 1 - 2 M $ 2 - 4 M $ 4 M +

Total 2017 621 54 2

Jul 1- Dec 31 2017 258 24 0

Jan 1 - Jun 30 2017 363 30 2

Total 2016 542 66 4

Jul 1- Dec 31 2016 253 37 4

Jan 1 - Jun 30 2016 289 29 0


Jul 1- Dec 31 2017 51 83 N/A

Jan 1 - Jun 30 2017 47 70 107

Jul 1- Dec 31 2016 63 93 32

Jan 1 - Jun 30 2016 52 64 N/A

% o f H o m e s S o l d O v e r L i s t P r i c e $ 1 - 2 M $ 2 - 4 M $ 4 M +

Jul 1- Dec 31 2017 6.59% 8.33% N/A

Jan 1 - Jun 30 2017 9.37% 16.67% 0%

Jul 1- Dec 31 2016 3.95% 5.41% 0%

Jan 1 - Jun 30 2016 6.57% 13.79% N/A

CA LG A RY TO P-T I E R M A R K E T P E R FO R M A N C E 2 0 17

ONTARIO ECONOMIC FACTORSC A N A D A : I N T E R N A T I O N A L G A T E W A Y G U I D E


5.5%

+10.5

110,025

2.6

ONTARIO ECONOMIC FACTORS



$559,102 $534,789 4.5%






Statistics Canada


1 Statistics Canada, Ontario - December 20172 Feb 2017 Conference Board of Canada3 Statistcs Canada, New Permanent Residents - Ontario 20164 Statistics Canada - Gross Domestic Product, Expenditure Based, by Region - Ontario, 2016


0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2017201620152014201320122011201020092008

ONTARIO RESIDENTIAL AVERAGE PRICES 2008 - 2017SOURCE CREA


0

50,000

100,000

150,000

200,000

250,000

2017201620152014201320122011201020092008

ONTARIO RESIDENTIAL SALES VOLUME 2008 - 2017SOURCE CREA

220,148 Unit Sales

O N TA R I O R E S I D E N T I A L AV E R AG E P R I C E S


0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2017201620152014201320122011201020092008

ONTARIO RESIDENTIAL AVERAGE PRICES 2008 - 2017SOURCE CREA


0

50,000

100,000

150,000

200,000

250,000

2017201620152014201320122011201020092008

ONTARIO RESIDENTIAL SALES VOLUME 2008 - 2017SOURCE CREA

220,148 Unit Sales

O N TA R I O R E S I D E N T I A L S A L E S / U N I TS

220,148 Unit Sales

ONTARIO ECONOMIC FACTORS1

1 Canadian Real Estate Association, (CREA), Ontario Sales Volume & Average Prices 2008 – 2017


ONTARIO COMMUNITIES Greater Toronto

With its rich history, breathtaking architecture and cultural diversity, Toronto, Ontario is Canada’s financial and business capital, a cosmopolitan city that has turned heads on the global stage both for its economic influence and its reputation as one of the safest, cleanest and greenest cities. It’s this economic opportunity and quality of life that makes Toronto real estate some of the most coveted in the world.



$743,500 $693,600 7.2%

Toronto: Efforts to cool the market

• Foreign Buyer’s tax implemented

• Rent Controls Expanded

• Proposed Vacancy tax

1 Canadian Real Estate Association, (CREA), Greater Toronto Average Price Comparison Dec 2016/20172 Canadian Real Estate Association, (CREA), Greater Toronto Sales Volume / Average Prices 2008 – 2017

0

$200,000

$400,000

$600,000

$800,000

$1,000,000

2017201620152014201320122011201020092008

GREATER TORONTO RESIDENTIAL AVERAGE PRICES 2008 - 2017SOURCE CREA


0

20,000

40,000

60,000

80,000

100,000

120,000

2017201620152014201320122011201020092008

GREATER TORONTO SALES VOLUME 2008 - 2017SOURCE CREA

93,158Unit Sales

TO R O N TO R E S I D E N T I A L S A L E S / U N I TS

93,158 Unit Sales

0

$200,000

$400,000

$600,000

$800,000

$1,000,000

2017201620152014201320122011201020092008

GREATER TORONTO RESIDENTIAL AVERAGE PRICES 2008 - 2017SOURCE CREA


0

20,000

40,000

60,000

80,000

100,000

120,000

2017201620152014201320122011201020092008

GREATER TORONTO SALES VOLUME 2008 - 2017SOURCE CREA

93,158Unit Sales

TO R O N TO R E S I D E N T I A L AV E R AG E P R I C E S $823,874

Average Price


G R E A T E R T O R O N T O T O P - T I E R M A R K E T P E R F O R M A N C E 2 0 1 7 1


Homes over $1 Million

# o f U n i t s S o l d $ 1 - 2 M $ 2 - 4 M $ 4 M +

Total 2017 17,129 3,103 391

Jul 1- Dec 31 2017 5,341 857 133

Jan 1 - Jun 30 2017 11,788 2,246 258

Total 2016 16,534 2,868 290

Jul 1- Dec 31 2016 7,983 1,381 156

Jan 1 - Jun 30 2016 8,551 1,487 134


Jul 1- Dec 31 2017 25 33 62

Jan 1 - Jun 30 2017 11 19 37

Jul 1- Dec 31 2016 21 32 35

Jan 1 - Jun 30 2016 20 30 50

% o f H o m e s S o l d O v e r L i s t P r i c e*

$ 1 - 2 M $ 2 - 4 M $ 4 M +

Jul 1- Dec 31 2017 22.45% 17.39% 12.03%

Jan 1 - Jun 30 2017 68.14% 51.30% 27.97%

Jul 1- Dec 31 2016 52.28% 34.01% 8.86%

Jan 1 - Jun 30 2016 58.19% 35.49% 14.18%


Creemore

Situated in a picturesque valley carved by the Mad and Noisy Rivers, the quaint village of Creemore, Ontario is located only 90 minutes northwest of Toronto and 40 minutes west of Barrie. Creemore is truly a hidden gem, surrounded by what locals call the “purple hills,” which frame the stunning landscape in every direction.

Ottawa

Ottawa is a city rich with heritage and culture, is a pedestrian and cyclist’s paradise, and offers one of highest standards of living in the country. As Canada’s fourth largest city and capital, Ottawa has a steady economic base, high employment rate, and excellent schools. It is situated at the eastern corner of Ontario neighbouring Quebec, has a population of over one million and was ranked the best place to live in Canada by MoneySense and fourth cleanest city in the world by Forbes.

Eastern Ontario

With a rich natural heritage and an abundance of lakes, rivers and streams, eastern Ontario has long been a destination for recreation, vacation and adventure. It’s also a region that exemplifies the best of small-town, Canadian living. Surrounded by picturesque rural areas, its towns and neighbourhoods offer quiet, clean and friendly atmospheres that make them popular places for families and retirement living.

ONTARIO COMMUNITIES Oakville

Oakville is a picturesque town with architectural and cultural heritage that comes alive in the 19th century buildings of its downtown core, and in the streets of its diverse neighbourhoods. Oakville’s lifestyle, however, is thoroughly modern. As a part of the Greater Toronto Area, Oakville is home to 300 national and international corporate head offices. The region’s high quality of life is one of the reasons its population grew by over 10% between 2006 and 2011.

Niagara-on-the-Lake

Located on the south shore of Lake Ontario, charming Niagara-on-the-Lake is well known for its beautiful countryside, theatrical Shaw Festival, outstanding wineries and national historic sites. The acclaimed vacation spot was ranked the #1 Food & Wine Destination in Canada (TripAdvisor, 2012), and is also a popular location for retirement and recreational real estate investment.

Muskoka

Located just two hours north of Toronto, Muskoka is a popular cottage country destination for vacationers from across Ontario. With more than 2,000 sparkling lakes covering 14,000 kilometres of shoreline, Muskoka is an ideal destination for boaters, fishers, swimmers, bikers and other outdoor enthusiasts. The District Municipality of Muskoka includes the towns of Gravenhurst, Bracebridge and Huntsville, as well as the townships of Georgian Bay, Lake of Bays and Muskoka Lakes.

QUÉBEC ECONOMIC FACTORSC A N A D A : I N T E R N A T I O N A L G A T E W A Y G U I D E


QUÉBEC ECONOMIC FACTORS



$298,780 $286,147 4.4%

4.9%

+13.9

53,240

1.7






Statistics Canada


1 Statistics Canada, Quebec - December 2017 2 Feb 2017 Conference Board of Canada3 Statistics Canada Admissions of Permanent Residents by Province/Territory & Census Metropolitan Area of Intended Destination (2016 ranking)4 Staticics Canada - Gross Domestic Product by Industry - Quebec 20165 Canadian Real Estate Association, (CREA), Quebec Average Price Comparison December 2016/2017


QUÉBEC ECONOMIC FACTORS1

1 Canadian Real Estate Association, (CREA), Quebec Sales Volume & Average Prices 2008 – 2017

0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2017201620152014201320122011201020092008

QUEBEC RESIDENTIAL AVERAGE PRICES 2008 - 2017SOURCE CREA


0

20,000

40,000

60,000

80,000

100,000

2017201620152014201320122011201020092008

QUEBEC RESIDENTIAL SALES VOLUME 2008 - 2017SOURCE CREA

82,639Unit Sales

Q U E B EC R E S I D E N T I A L AV E R AG E P R I C E S


0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2017201620152014201320122011201020092008

QUEBEC RESIDENTIAL AVERAGE PRICES 2008 - 2017SOURCE CREA


0

20,000

40,000

60,000

80,000

100,000

2017201620152014201320122011201020092008

QUEBEC RESIDENTIAL SALES VOLUME 2008 - 2017SOURCE CREA

82,639Unit Sales

Q U E B EC R E S I D E N T I A L S A L E S / U N I TS

82,639 Unit Sales


QUÉBEC COMMUNITIES Montréal - Westmount

Westmount, a prestigious enclave of Montreal, is situated on the southern face of Mount Royal’s southernmost peak, and extends from its summit to the plateau at the foot of the mountain. Within this area of just four square kilometres are some of the most prestigious homes and real estate in Canada. Its majestic Victorian architecture is so notable that in 2012, Westmount was added to Canada’s list of historically significant sites. Montréal - Ville-Marie

Cosmopolitan Montreal is a cultural kaleidoscope combining French-Canadian joie de vivre, European charm, North American innovation, and the influence of over 80 ethnic communities into one of the most fascinating urban cultures in the world. Deemed "Canada's Cultural Capital" by Monocle Magazine (2007) and named a UNESCO City of Design, Montreal’s energy comes alive in its unique neighbourhoods and in a real estate market that has captured attention and investment locally, nationally and internationally.



$330,900 $313,900 5.4%

1 Canadian Real Estate Association, (CREA), Montreal Average Price Comparison Dec 2016/2017

SOTHEBYSREALTY.CA 3232 CANADA: INTERNATIONAL GATEWAY GUIDEHomes over $1 Million

M O N T R E A L T O P - T I E R M A R K E T P E R F O R M A N C E 2 0 1 7 1


# o f U n i t s S o l d $ 1 - 2 M $ 2 - 4 M $ 4 M +

Total 2017 611 111 12

Jul 1- Dec 31 2017 295 60 7

Jan 1 - Jun 30 2017 316 51 5

Total 2016 511 93 9

Jul 1- Dec 31 2016 242 47 7

Jan 1 - Jun 30 2016 269 46 2


Jul 1- Dec 31 2017 104 147 265

Jan 1 - Jun 30 2017 98 206 262

Jul 1- Dec 31 2016 129 208 283

Jan 1 - Jun 30 2016 127 250 231

% o f H o m e s S o l d O v e r L i s t P r i c e*

$ 1 - 2 M $ 2 - 4 M $ 4 M +

Jul 1- Dec 31 2017 11.53% 8.33% 0%

Jan 1 - Jun 30 2017 11.08% 5.88% 0%

Jul 1- Dec 31 2016 4.55% 8.51% 0%

Jan 1 - Jun 30 2016 5.20% 6.52% 50%

SOTHEBYSREALTY.CA 3333 CANADA: INTERNATIONAL GATEWAY GUIDE

Knowlton (Lac Brome)

Knowlton (Lac Brome) is a rural town, situated on the shores of Brome Lake in Quebec’s Eastern Townships. With its lake and beaches, marina, golf courses, trails, ski hills and Victorian-era architecture, Knowlton is a popular and picturesque destination for vacation and recreational real estate investment. Tucked into its landscape are real estate gems ranging from charming cottages to some of the most prestigious private country estates in Quebec.

QUÉBEC COMMUNITIES La Cité

The only fortified city north of Mexico, Quebec City has a rich 400-year heritage and is a designated UNESCO world heritage treasure. With European charm and architectural flair, Quebec City boasts quaint streets, festivals year-round, pristine parks, public markets and a truly unique French-Canadian culture.

Hatley – Canton

With rolling hills, quiet countrysides, mountainous horizons and blue lakes, Quebec’s Estrie region encompasses most of the province’s iconic Eastern Townships. The region is alive with villages that are as colourful as the surrounding scenery, arts and cultural festivals, and endless outdoor adventures. It’s a region that not only attracts visitors, but also city dwellers, families and retirees looking for a serene setting to call home.

Mont-Tremblant

Mont Tremblant has ranked as the No.1 Ski Resort in eastern North America for over 15 consecutive years (SKI Magazine, 1998-2012). In winters, it draws visitors to its varied ski terrain, towering mountain backdrop and lively, alpine village. Tremblant’s busiest season, however, is summer, when sunshine showcases its natural panoramas. With its year-round appeal and cachet with international jetsetters, Mont Tremblant real estate attracts investment interest from around the world.

BUYING & SELLING PROPERTY IN CANADAC A N A D A : I N T E R N A T I O N A L G A T E W A Y G U I D E


BUYING PROPERTY IN CANADA: P R O C E S S F O R B U Y I N G

Step 1: Ensure you have financing available and funds are accessible for your purchase

Step 2: Determine budget, area(s) of interest and required property features

Step 3: Contact our offices by visiting sothebysrealty.ca or calling 1.877.236.8800

Step 4: Meet with an agent to discuss your needs and to assess properties to view

Step 5: Property viewings

Step 6: Make an offer, reviewing all material facts pertaining to the property

Step 7: Agree on terms and subject conditions (if any)

Step 8: Provide a deposit upon removal of subject conditions. Typical deposits required range from 5%-25% depending on the property type and location.

Step 9: Complete the sale, paying the balance of the purchase price through cash or financing or a combination of both.

Step 10: Take possession of the property


This is charged whenever a property changes hands and is based on the purchase price. Most provinces in Canada charge a provincial land transfer tax and some cities also charge an additional municipal land transfer tax. In some cases, first time homebuyers may be exempt from a portion of this cost. You can obtain further details about land transfer tax on provincial or municipal websites to help you estimate the cost.

The areas of Greater Vancouver and Greater Toronto have imposed a new transfer tax of 15% to buyers who are not Canadian citizens or residents of Canada. This is paid in addition to the standard land transfer tax rates in the area.

Legal fees and related expenses

Approximate Cost: $1,000 - $2,500

These fees vary by province and are subject to GST or HST where applicable. Ensure your lawyer's quote includes all related expenses and disbursements, not just legal fees. Make sure your interests are protected by discussing your Offer to Purchase with your lawyer or notary prior to signing.

GST/HST where applicable (sometimes included in sale price)

Varies based on Province

Some properties are GST and/or PST sales tax exempt and some are not. Generally, GST or HST where applicable is charged on new homes, but not on resale properties. Always ask before signing an Offer.

Title Insurance

Approximate Cost: $250 Title insurance is optional and covers problems that may arise

BUYING PROPERTY IN CANADA:C O S T S A S S O C I A T E D W I T H B U Y I N G P R O P E R T Y I N C A N A D A

Property Valuation Fee

Approximate Cost: $150 - $200

This is the fee for determining the property lending value for mortgage purposes. This value may or may not be the same as the purchase price of the home.

Home inspection fees

Approximate Cost: $500

The home inspector evaluates the structures and systems that make up your home and provides you with a written report. While not mandatory, many people make a professional home inspection a condition of their Offer to Purchase.

Property Survey

Approximate Cost: $750 - $1,000

A survey indicates the boundaries and measurements of the land and positions of major structures, and any registered or visible easements (such as a driveway) or encroachments (such as a neighbour's fence) on the property.

Land transfer tax (if applicable)

Varies based on Province


due to encroachment issues (for example, a structure on your property is actually part of your neighbour's property and needs to be removed), existing liens against the property's title, title fraud, undischarged mortgages and other issues relating to the property's previous owners.

Insurance costs for high-ratio mortgages

Variable

Usually, mortgage default insurance premiums range between 0.6% and 4.50% of the principal, plus applicable fees (may be subject to provincial sales tax which cannot be added to mortgage amount).

REALTOR® Commission

Cost Varies

Commission rates vary and this cost is typically borne by the Seller, although buyers are sometimes required to pay a commission. Speak to your Realtor® to confirm.

Interest adjustments

Approximate Cost: $100 - $1,000

You will need to pay interest on any gap between the closing date of the purchase and the first payment date of the mortgage. You can avoid an interest adjustment by arranging to make your first mortgage payment exactly one payment period after your closing date.

Prepaid property tax and utility adjustments

Approximate Cost: $400 - $500

You will be required to reimburse the vendor for any prepaid property taxes or utility bills.


and ask what you will need to pay to break your mortgage. Keep in mind, if you’re looking at a high penalty to break your mortgage you may be able to transfer it to a new property for a significantly smaller fee.

Capital Gains Tax

If you are a resident of Canada and you are selling your principal residence, capital gains tax is not applicable. Sales by non-residents or on secondary, vacation or investment properties are subject to capital gains tax. Typically 50% of the gain made on the property is taxable.

SELLING PROPERTY IN CANADA: C O S T S A S S O C I A T E D W I T H S E L L I N G P R O P E R T Y I N C A N A D A

REALTOR® Commission

Cost Varies

Commission costs are typically borne by the Seller. The commission percentage is not set and can vary depending on the area and the REALTOR®.

Lawyer’s Fees

Approximate Cost: $1,000 - $2,500

You will need a lawyer to discharge the title for the property and the mortgage and to verify that all prepaid expenses are returned to you and that utility and other services are up to date in payments.

Mortgage Discharge

Varies

If you ended your mortgage—known as a “closed” mortgage—before you mortgage matures you will need to pay penalties and discharge fees. For a variable rate mortgage, the penalties are typically lower. For a fixed rate mortgage, the penalties can be much, much higher so it’s a good idea to call your lender

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CANADA INTERNATIONAL GATEWAY · 6 CANADA: INTERNATIONAL GATEWAY GUIDE CANADA ECONOMIC FACTORS...

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