Briefing highlights
* Toronto, Vancouver tumble in rankings
* Doug Ford scenes I’d love to see
* Markets at a glance
* Canadian dollar flying, above 78 cents
* Canadian Tire grabs Helly Hansen
* Quote of the day
* Magna quarterly profit surges
* Telus posts dip in quarterly profit
* Enbridge tops profit estimates
* Bank of England holds steady
* Scotiabank takes control of Peru bank
* U.S. inflation picks up
Knocked down
The Toronto and Vancouver real-estate markets are tumbling in the global rankings, knocked from their luxury perches by a combination of rising interest rates and policy measures aimed at taming inflated properties.
In Knight Frank’s latest quarterly look at prime real estate, or the top 5 per cent of the market, Toronto dropped in the first quarter to No. 18 and Vancouver to No. 31, from 11 and 22, respectively, in the previous three-month period.
This comes after the Ontario and B.C. governments introduced measures to deflate their markets, notably Toronto and Vancouver, and the federal bank regulator brought in new mortgage-qualification guidelines.
“Macro prudential measures have undoubtedly played a part in tempering luxury price growth, most recently the measures announced as part of the February, 2018, budget in British Columbia,” said Knight Frank partner Kate Everett-Allen.
“However, the market is also shifting,” she added.
“Canada is moving into a higher interest-rate environment – and the cost of money for investors is rising. However, this process should be a slow one, and one that will allow adjustment. It is important to remember that rising rates are a reflection of underlying economic strength – it is only because the economy is growing at a global level, and wage rates are rising, that policy is moving in favour of rate rises.”
According to the real-estate consultancy’s report, Seoul is in the No. 1 spot, with values rising almost 25 per cent by March from a year earlier.
Seoul was followed by Cape Town, Guangzhou, Berlin, Shanghai, Paris, Madrid, San Francisco, Sydney and Melbourne to round out the top 10.
Toronto now sits between Frankfurt, No. 17, and Brisbane, No. 19, while Vancouver is between Milan and Rome, at 30 and 32, respectively.
Read more
- Brent Jang: Luxury home sales plummet in Toronto, Vancouver
- Matt Lundy: Canada’s mortgage test just got tougher
- Adam Stanley: Ottawa’s red-hot housing market is country’s most active
- Plan on growing marijuana at home? There goes the neighbourhood, realtors warn
Scenes I’d love to see
I’ll give you $5-billion if you let me through.
Photo illustration
But can I get a raise?
Photo illustration
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Markets at a glance
Read more
- Follow our Inside the Market
- Don’t take the wounded loonie personally: A look at ‘murderer’s row’ and more global currencies
Canadian Tire grabs Helly Hansen
Helly Hansen, meet Mark’s.
Canadian Tire Corp. is buying the company that owns and operates the Oslo-based Helly Hansen brands for $985-million, assuming $50-million of debt, as well.
Canadian Tire already owns several outdoor and sports businesses, including Mark’s, Pro Hockey Life and FGL, which, in turn, includes Sport Chek and National Sports.
Helly Hansen is a leading brand in its own right around the world.
Canadian Tire is getting Helly Hansen through its purchase of a company controlled by the Ontario Teachers’ Pension Plan.
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Quote of the day
The Vancouver housing market is in retreat, the loonie’s cheap AND the sun’s shining. All I need to do is win the lottery and my Brexit safe-haven beckons....
— Kit Juckes, Société Générale, in a tweet
Corporate results pour in
- Magna profit jumps 14.3 per cent
- Telus reports 2.4 per cent drop in quarterly profit
- Enbridge tops profit estimates as pipelines move more oil, gas
More news
- Bank of England holds rates steady
- U.S. inflation picks up
- Scotiabank takes 51% controlling interest in Peru’s Banco Cencosud