The story of the world’s largest condo development has been unfolding on the Pacific Rim since the early 1980s, when the first condo towers came online in Toronto.
But the future of high-rises in Canada is a little more complicated.
The condo boom is now being led by mainland China, which is building skyscrapers to cater for a rapidly growing middle class, and Canada’s most prominent property developers are trying to keep up.
The latest boom has attracted investors from around the world.
The world’s most expensive residential property is now under construction in Singapore, a city of 2.3 million people that is building more than half of its buildings with a view to one day having a population of over 10 million.
The biggest development project in Canada to date, the $8bn Harbourview condo in Vancouver, opened in May.
In Canada, the price of a new high-end condo has doubled in the past year.
And the number of high rise buildings in the country is set to double by 2025, according to the Canadian Real Estate Association.
The trend is driven in part by the country’s booming real estate market.
“The condo boom has been fuelled by Chinese demand and China is a very different country than it was 20 years ago,” says John McAlpine, director of research at real estate brokerage firm RealtyTrac.
“We have a huge number of low-income people who are in the market for homes and condos.” “
The condo market in China has also become more internationalised in recent years, as new skyscraper projects like the Shanghai Expo Centre and Beijing Expo Centre, as well as other new high rises are built in the region. “
We have a huge number of low-income people who are in the market for homes and condos.”
The condo market in China has also become more internationalised in recent years, as new skyscraper projects like the Shanghai Expo Centre and Beijing Expo Centre, as well as other new high rises are built in the region.
Chinese real estate developers are increasingly moving into Canada, with projects in Montreal, Toronto, Vancouver and Edmonton all expected to open this year.
“There is a lot of pent-up demand for these types of highrises in the US and Canada, and this has pushed prices up a little bit,” McAlpines says.
“In the US, the market has been driven by Chinese buyers, and in Canada it’s driven by US buyers.”
The rise of China’s middle class has been a key driver of the condo boom, with the average Chinese household owning about a third of all new homes, according the U.S. Census Bureau.
But with China’s economy contracting, the country now faces an increasingly crowded housing market, with buyers looking for the best deals and the most expensive homes.
The housing market is also set to shrink.
In 2017, Canada’s real estate prices dropped 3 per cent, while the national median home price dropped 1 per cent.
Canada is already seeing a decline in the number and types of homes being sold in the U: the average number of sales for the first six months of 2018 was 3,958, down 3 per an average home price of $1.2 million.
In other words, the median house price is still the same, but prices are lower, McAlpers says.
China is building hundreds of thousands of new condo towers in an effort to become a high-income country.
But it has also been facing growing opposition from local governments, who say they are losing revenue due to the construction.
In some cases, condo developers have been fined for building in poor neighbourhoods.
The condominium boom in China is also being led not only by mainland Chinese buyers who want the best homes for their families, but also by developers who want to keep their properties cheap.
The country’s biggest real estate company, Tencent Holdings, has also started construction in the city of Shenzhen, with plans to build another 30,000 units by 2020.
Tencent is building a new development in Shanghai, the world headquarters for its internet company Tencent, and is also expanding its presence in Canada.
The company has a huge presence in Toronto and Vancouver.
Its latest development, the new $2.5bn Riverview condor development in downtown Toronto, is set for completion by the end of 2020.
“Tencent has been working hard to create its own brand, which will bring the best in condominium and high-density living,” says Jim McAlpin, director at RealtyTrak, an online real estate broker.
“It has built a very strong brand with its luxury apartments, and they are also a good seller.”
Tencent’s latest developments will help the company retain a market share in Canada, even as developers in the United States continue to outpace them in market share.
Tencem’s Mr McAlpenys says the company has been trying to compete with other developers in Vancouver and Toronto.
“Tencem is building two or three projects per year in the two major markets