Tuesday, December 20, 2016

New Homes and Red Tape in Alberta: Residential Land-Use Regulation in the Calgary-Edmonton Corridor

As an increasing number of people move to major Canadian cities, housing prices have continued to rise in its most desirable markets. Understanding how public policy affects the supply of new homes is critical. The Fraser Institute’s survey of housing developers and homebuilders provides new insight into this issue. New Homes and Red Tape in Alberta: Residential Land-Use Regulation in the Calgary-Edmonton Corridor is part of a series of publications tallying the data to represent industry professionals’ experiences and opinions of how residential development is regulated in cities across Canada. This report presents survey results for cities in Alberta’s Calgary-Edmonton Corridor (CEC).
We found disparate estimates of typical project-approval timelines in CEC cities: estimates range from 5.7 months in the Municipal District of Foothills No. 31, and 6.1 months in Strathmore to 15.1 months in Rocky View County and 18.1 months in Strathcona County.
Typical approval timelines in Calgary and Edmonton, the CEC’s two largest cities, are comparable, at 13.5 months and 12.9 months, respectively, although Calgary’s are among the region’s most uncertain. Calgary’s average reported impact of timeline uncertainty is rivaled only by Rocky View and Strathcona Counties. In Edmonton, our survey suggests the impact of timeline uncertainty is in the middle of the pack, while results for Foothills No. 31 and Strathmore on this measure are particularly encouraging.
Reported compliance costs and fees add up to a low of $12,250 per home built in Foothills No. 31 and a high of $51,000 per home in Strathcona County. Calgary and Edmonton rank closer to the regional average: reported compliance costs for Calgary are $27,625 per new home; for Edmonton, $32,273.
The survey reports that properties need to be rezoned to accommodate more than 50% of new residential development in all but two municipalities (High River and Foothills No. 31). Estimates of rezoning’s effect on approval timelines range from under two months in Red Deer to 14.7 months in Rocky View County.
Opposition from the Council and community to residential development is perceived as strongest in cities where dwelling values are highest, raising questions about the causes and consequences of local resistance to new housing. The strongest opposition is reported in Rocky View County. Opposition from Council and community is typically not perceived as a deterrent to building in Strathmore, Cochrane, and Okotoks.
The publication provides a summary index of residential land-use regulation that is calculated by tallying across five key components of regulation’s impact—Approval Timelines, Cost and Fees, Council and Community, Timeline Uncertainty, and Rezoning Prevalence—in the twelve cities that generated a sufficient number of survey responses. This index ranks Strathmore as the least regulated and Strathcona County as the most. Calgary comes in below average in all categories and is the third most-regulated city ranked overall, while Edmonton ranks closer to the regional average.

100万在加拿大不同城市可以买到什么样的房子

http://globalnews.ca/news/3074497/heres-what-1-million-homes-look-like-in-16-canadian-cities/?campaign_id=A100

Monday, December 5, 2016

SOLD 西南区 Strathcona Park 两层楼 $629,000.00



Nov. 14, 2016 成功卖掉 109 Straddock CR SW

卖方是我认识多年的客户了,两年前卖地时候卖家对于价格期待太高,没有卖出去,就出租了。现在要移居区温哥华,因为先生单位内部调动他。

在我仔细研究了社区近期售出信息以后,我们决定就原样空房子出售,但是卖家这次心态很端正,几乎接收了我建议的短期挂牌价格,同是我在MLS系统中强调了这套房子的优点,上市13天成功卖掉!因为房检的原因,最后以97.3%的比例售出。

SOLD 西南区/市中心西边 West Spring 独栋两层楼 $535,000

Oct. 12, 2016 SOLD 28 Wentworth Close SW $535,000.00 



我必须承认很多老客户给予我工作莫大的支持,把我推荐给他们的亲戚、朋友、同事等等,因为对于我服务的认同。同时,我也发自内心的感激他们帮助我养家糊口。 

我帮助这对买家夫妻成功卖掉Evergreen 的房子,还记得给房子stage以后,他们儿子来了,竟然说:“妈妈,咱们家怎么变样了?” 这次是先帮助他们的亲戚在这段低谷期间购买了一套带walkout地下室的房子,现在又是帮助他们添置了一套投资的房子。谈判期间我还是很不舒服的,因为我的买家最初出价太低,我们一路接接抬价。尽管,这对夫妻对于要价在这个社区目前是最低的53.5万,他们可以53万以上或者要价接盘,最后成交价格已经为他们省掉$5000-$10,000,但是我内心还是没有以往的成就感。以往在谈判中,绝大多时候我总占优势的...... 

SOLD 西北区 University Heights 大学对面 $949,000

Sep. 27, 2016 --- 2307 Usher Road NW

就是现在房子都卖了,一想到这对夫妻,我的眼睛就很湿润,因为他们是那么善良的一对早期来自香港的移民夫妻,我们的见面、成交就像是在梦中一样,一切都很顺利。再次感谢上帝的blessing,也向上帝祈祷保佑Elim的心脏,他们搬到温哥华的主要原因,是为了先生Elim的健康。

有一天我接到卖方太太打来的电话,因为我带客户看了他们家的房子,而他们又正在物色新的卖房经纪。她就在网上到处查看我的social media,最后才联系的我。我到房子一看,就明白为什么房子在过去的3个月没有卖出去了。好好的一套升级很多的大房子,空荡荡的,没有生机、更没有之前的感觉。而卖方、卖方代理竟然3个月了没有做过任何调整、沟通。好在代 理还做过1-2次open house,但是3个月的时间,好像很不够啊??

我们把房子重新布置了一下,又再次定位价格。上市的第18天成功售出,成交价格是要价的98.84%。再次经历了成功售出原本在市场上有几个月以上的时间,我接手后很快帮助房主卖出去,深深地增加了我卖房子地信心,尤其是原来的卖方代理是这个社区的“卖方专家”,也就是经常给房主们发放flyers。我坚信,卖房子、买房子是门很有学问地艺术,真是为自己高兴,经过了这么多年,内心越发自信了。也感激那些最初用我服务的老客户,没有他们的支持,我是不会有今天的成绩的!!!

BEFORE - 这是原来的一楼的大厅

AFTER - 这是布置之后的厅里一角





十一月份房地产统计

十一月份对我个人而言,相当忙碌,觉得不是看房子,就是出offer、谈判、房检,都没有什么时间干别的应该做得事。最后firm好几个deal,也有一个没有最后成交。其中给银行拍卖房出了两个offer,Scotia银行的最后成交了,两个offer都是和另外一个买家竞争,好像买家都是亚洲买家。具体报告如下:

十一月份的交易又回到以前的模式了
就十月份一个销售火爆,这次十一月份又回到以前的不景气局面。 共售出1227 套,比去年同期低了3%,比长线均值低了17%
"十一月份是 CMHC实施新贷款政策以来的第一个月份,就像我们猜想的那样,上个月的火爆果然是个临时的假象。缩紧的贷款政策加上目前的经济气候,影响着市场需求。"
十一月份供给没怎么涨,但是销售量降了,导致可售房源在市场上的月份微调高了一点。十一月份整个城市市场基准价为$436,200,比十月份微降0.6%,比去年同期降了4.1 %(怎么没觉得那么多呢,都是被高端房屋给拉下去的吧?!) 
独立屋本月市场基准价为$498,300,这可是自2014年初以来第一次跌破50万大关。尽管价格调低了一点,但是独立屋仍然好过了公寓/排屋,因为加上开发商的新公寓/排屋整个城市的供给太多。
截至目前为止,独立屋的成交量比去年同期微降3%,但是近几个月份我们看到高价位段房屋成交有所改善,应该是持续不断的价格调整终于见成效了。
"这个月的交易表现没什么让我们吃惊的,看看这市场变幻莫测的。我们在某些区域看到比较活跃的交易行为,但是很多其它月份买卖双方都期待太高。十一月份就是这样的月份之一。"

"再次重申,不管消费者如何询问问题,了解不同的市场动态都不过分,因为只有这样,我们才能在不同的市场条件下做出正确的决定。 "

Wednesday, November 2, 2016

SOLD #1508 3500 VARSITY DR NW $230,000


C4064907 #1508, 3500 Varsity DR NW $230,000. 
买家是个在这里长大的菲律宾投资客户,从事销售工作我多年了,见过各种各样的人,这女人还真是第一次见到,就要把我做销售的全部热情给磨平了。前前后后,共出了4个offer,放弃了3个,才最后成交了这套,还不是我想让她买得。但是她就是什么都听不进去,就以为自己的主意正。 

因为是投资客,预算又好,30-50万都行。我就建议她尽可能买到不交管理费的独立屋,可是一会儿买家希望能够出门就让小孩骑自行车,一会要想离儿童医院、大学、大型超市近。总之,一天一个新主意。好吧,想买公寓,我不让她买靠近市中心的那套town house,因为我告诉她这栋楼里单元户太少,当年建筑期间,我们并不确定建筑质量。那么现在管理公司又不会是大型管理公司,很难准确把握公寓管理水平包括正规的管理文件提交。她就是不听,我们看房子,出offer。然后她碰钉子了,联系小楼的管理委员会,人家根本不把她当回事,问什么,什么不给回复。这还没有搬进去就这样,将来怎么办??得,又白费一个offer。 

最后这个啊,是她偏要买得,再不买孩子上学以后就没时间看房子了。我告诉她一定要让公寓审核文件公司审核所有文件,她因为前前后后房检就花了两回钱了,就想省钱。好在还是听我得,自少让律师瞅了瞅。哎......

2001-2015 Calgary investment activities

Investment Activity

• In the 2001-2015 period, world commodity prices fluctuated in response to economic cycles
and changing demand in the emerging and advanced economies. Between 2001 and 2014,
the price for West Texas Intermediate (WTI) oil climbed from $25.9 (US per barrel) to
$93.0 (US per barrel). However, WTI dropped to $48.7 (US per barrel) in 2015, in response to
an increase in the supply/ demand balance in the oil market. Adjusted for inflation, oil prices
grew by 88 per cent over the review period.

• Investment intentions in Alberta adjusted for inflation rose by 106 per cent between 2001
and 2015. Investment intentions rose in response to higher commodity prices and strong
demand for additional residential and non-residential space.

• In this period, Alberta’s provincial GDP rose 46 per cent, from $199.4 billion in 2001 to
$298.0 billion by 2015 (at 2007 price level). Investment spending was an important
contribution to the GDP growth.

• Price fluctuation resulted in corresponding fluctuation in revenues and capital spending,
which caused economic activity to fluctuate.


Investment by Sector and Industry

• Residential investment indicates the expenditures on residential structures and residential
equipments, while non-residential investment indicates the expenditures by businesses on
capital such as commercial real estate, equipment, and machinery.

• Capital investment was the largest contributor to Calgary’s economic growth between
2001 and 2015.

• However, low energy prices resulted in declining investment in 2015 and it is expected to
remain a drag on economic growth in 2016 as energy investment continues to decline.


十月份房地产统计---交易量大增

十月份房屋销售反弹了

油价开始往下跌已经两年了,第一次二手房的交易表现正常。整个城市共售出1,644 套,比2015年同期涨了近16%(和10月17日的新贷款政策截至日期肯定有关吧;还有一些买家意识到怎么也没有降到他/她期待的价位,至少独立屋产品段)。

看房地产局官方也承认了,“这次销售量的增加可能和新贷款政策调整有关,还有就是低价位段的房屋供给增加、未来价格继续调整。众多变化因素可能刺激部分买家入市,特别是购买低价位段的买家。然而,还有其它很多因素影响房地产市场走势,这个月份的变化可能只是暂时,接下来的几个月还要继续观望才是。” 

成交量和去年同期相比,各种房屋产品全都增加,但是增幅最多的还是独立屋产品段,成交量超过去年同期18%。还有个迹象值得一提,就是30-40万价位区间成交量增加最多。而连体房、公寓增加的交易量则主要在低价位的产品。

“今年截至到目前,市场的变化给很多卖方带来极大挑战。交易量提升,意味着买家入市,同时那部分卖家解套了,这其实对于买卖双方来说都是好事。”

还是那句话,这个月的迹象是暂时的,还要观察下面几个月。(有啥好观察的,都年底了,然后就年初了,圣诞/度假季节,除非从国外大量涌入买家。)尽管这个月的表现良好,但是从年初至今全部房屋产品段都仍然比去年同期差,也比长线指数低。从年初至今共成交 15,642套,比去年还是少了6.3%。低价位成交量增加,就把均价、中间价位拉下去了,整个城市二手房市场基准价没怎么变 $438,900,比上个月微低 0.34%,比去年同期调低4%。

从2015年初经济衰退开始,独立屋产片段一共降了 3.8 %,而公寓产品段降了9.4%(怎么觉得提这个比率大得要多呢??),尽管10月份交易量增加不少,但是大部分的房屋产品价格继续下滑。


新挂牌西南区Strathcona Park可以就读Olympic Heights小学,前置双车库,walkout 地下室,62.9万

                                       房主急售 109 Straddock CR S.W. Calgary C4088270


位于西南区Strathcona Park,2057平方米,walkout地下室,装修了。是walking zone就能去Olympic Heights小学的房子,请家长们主意! 要价62.9万, 房主因为工作变动搬到温哥华,诚意出售。11月5日/周六1-4点open house,欢迎前来参观。

Walking ZONE to Olympic Heights elementary school. OPEN HOUSE 1-4PM ON NOV 5. MORE PHOTOS SOON. Steps to local shops & grocery, parks & playgrounds, an easy commute to downtown by LRT. Newer roof, siding in 2013. Outstanding floor plan offers an inviting foyer which is open to a lovely living room with South bayed window & adjoining, elegant formal dining room - all sharing a soaring, vaulted ceiling. Updated wrap-around kitchen features sleek Corian counters and stainless steel appliances, NEW DISHWASHER, FRIDGE. Sunny nook overlooks fabulous rear yard with mature trees. Adjoining family room enjoys cozy gas fireplace that is flanked by built-ins. Upstairs is a cozy master suite with bayed area overlooking private rear yard. Newer renovated ensuite with jet shower & hydrotherapy tub. Also up: 2 amply scaled bedrooms & full bath. FRESHLY PAINTED in 2015. Walkout level wonderfully developed with vast rec room, bayed den & spacious mud room. Welcome home!

Tuesday, October 18, 2016

在新的贷款政策下,买家的贷款能力

今天开始生效的新贷款政策对于首付达不到20%的买家是雪上加霜,因为贷款金额大幅降低。具体请看下面图表,并联系你的贷款顾问。



SOLD 东南区 Midnapore duplex没有管理费 $280,000



SOLD my listing C4064839 19 Midpark DR SE $280,000. 

My hiking friend's house. It is tougher than I thought as the condition of the row house especially original kitchen & baths. With tenants lived there for the first month and mess in the house, we got lots of attraction but only one offer. I would say owner was not ready for offer or do not really know what to do. Negotiation was not smooth at all as seller stop negotiation in the middle of conversation. 

After wasting two offers, I insist and suggest seller to work with the 3rd offer. It\'s never too late right especially offer is still on the table :). Atash said his parent can now retire. So happy for you buddy. 

low price listings under $350,000


Friday, October 7, 2016

SOLD Evergreen SW two - story double attached garage $498,888


                                                     252 Everoak CI SW  C4075126

Helping first time home buyer bought a home is not the one they liked originally. I would say buyers are really simple :). They asked me to put an offer for another home $529,900 with developed basement. I know exactly would not pass my standard of buying. After comparing 4 other homes, I told buyer the one they like has average original condition, but this one asking price is $498,888, already with finished basement. Since this will not be their forever home, maybe it is better to take a better value home for resale sake, and this one with better condition. All family members agreed finally :)

Thank you for using my service.

Wednesday, October 5, 2016

九月份房地产情况---独立屋优势大些

卡尔加里的二手房市场显示开始平稳的迹象,独立屋市场基准价九月份 $503,400,比去年降了3.3%,但是只是第二个月份保持在这个水平。

尽管整体经济形势疲软,目前独立屋产品段有迹象显示价格走势平稳。“需求的降低,使得很多人预计价格会下降很多。但是绝大部分独立屋并没有价格大幅下滑,其中一部分原因是因为供给可售房源并没有预期的那样猛增。在这轮经济疲软的最开始,我们看到突然间供给增多,但是仍然比前一次供给高峰水平低”。同时,独立屋新挂牌房源也是持续第二个月比去年同期低,帮助缓解了库存房源继续增加的压力。

“消费者们都开始见风使舵,绝大多数卖方调整了价格预期,同时买方也意识到房屋的要价和其地段、供给价位区段以及房子的内外部装修升级状况有关”。

9月份民宅库存可售房源5,877套,比2015年同期高出5%,主要因为公管公寓、连体房屋供给增加。整个城市目前销售吸收月份近4个月,独立屋短些,为3个月;可是公管公寓产品段为8个月。

销售量呢各有千秋,独立屋涨了4%,但是公寓市场降了23 %。尽管如此,全部房屋产品段成交量都比去年低,也低于长线均值。

二手公寓市场库存可售房源大量增加,销售量却很可怜。再加上开发商的房源供给入市,雪上加霜,价格继续下滑。9月份公寓市场基准价为$274,700,比上个月低了 0.1%,比去年同期低了6.8%。

Monday, September 12, 2016

Canada 2016 2nd Quarter Commercial Snapshot

Not every Realtor in Calgary can help you with commercial real estate, I am more than happy to serve you with retail stores, industrial spaces & office sales & lease as certified commercial real estate agent. Just let me know where you would like to start!


Sold listings in Haysboro SW - Aug., 2016

We have a rental bungalow in Haysboro SW Calgary. That is why we keep eyes on community statistics. It is still surprised to see average days on the market is only 34 days but it is over 6 months in Calgary.



Friday, September 2, 2016

SOLD 西南区Silverdo, 排屋 $364,900,没有管理费

67 SILVERADO DR SW with double detached garage c4065478, 
$364,900 Helped buyer bought a home facing to community green space/park after putting an offer for the 2nd time.

Immaculate twin master unit with 2 master suites, each with their own private ensuite bathroom! This unit offers 2 large bedrooms, 2.5 baths, 2 car detached insulated and drywalled garage, and a beautiful fenced backyard with large deck....all of this with NO CONDO FEES! The main floor is an open concept with tile and laminate flooring. Granite counters, island, stainless steel appliance, and dark stained maple cabinets make the kitchen a great focal point for this home. The open concept to the dining area and living room creates a great space for day to day living and entertaining. Lower level is unfinished with laundry hook ups. Looking for larger bedrooms, immaculate condition, double car garage, and a beautiful little yard....but don't want condo fees....don't miss this opportunity!

Thursday, September 1, 2016

8月份二手房市场统计

独立屋和供给大量过剩的公寓相比,两个截然不同的故事!

总体而言,八月份卡尔加里二手房成交还是下滑,共售出1,567套。不过,但看成交量还看不出独立屋和公寓、连体屋之间的强烈对比。“在独立屋成交量降低的同时,新挂牌量也降低了,从而防止了库存可售房源数量达到新的高点,也稍微抑制了价格下滑。”房地产局首席经济学家 Ann-Marie Lurie提到。但是连体房、公管公寓房屋产品段就完全不同了,库存可售房源总量快基恩八月份历史记录了”。

独立屋市场基准价八月份$503,200, 比去年低了3.3%,和上个月相差无几。同时,公管公寓市场继续下滑,市场基准价降到 $274,900,比去年同期低了 7%,达到了2013年底的水平。公管公寓房屋产品段价格下滑的幅度比较大,源于供需之间的明显失调。 平均起来,公管公寓房屋可售房源总量超过了历史纪录。同时,成交量却是自2003以来表现最弱的月份,目前平均在市场上的天数超过6个月了”。

 “所以,对于买方、卖方都非常重要的是一定要仔细分析研究他们的区域、房屋特性以及性价比。房地产局主席Cliff Stevenson说到。我们明显看到独立屋和连体房屋、公管公寓之间表现的不同,目前用整个城市的房屋数据来参照并决定买卖房屋这么大的事已经不现实了”。

连体房屋表现和公管公寓有些相像,但是因为不交管理费的那种连体房屋也在连体房屋类别内,所以影响相对小了一些。平均起来,今年到目前为止duplex产品段市场基准价降了2.6%,而排屋降了5.7 %(其实,这两个产品段都是又有交管理费的,又有不交管理费的,只是比重不同而已)。

DOWNTOWN OFFICE VACANCY RATES EXPECTED TO CLIMB

Lower-class spaces feeling brunt of energy downturn     
                                                                                                                         by Mario Toneguzzi
Vacancy rates in Calgary’s downtown office market have hit historic highs in 2016, and commercial real estate experts are forecasting further declines moving forward.
According to a second-quarter market report by Colliers International in Calgary, the overall vacancy rate in the core has jumped to more than 22 per cent from 20.5 per cent the previous quarter – the equivalent of 618,716 square feet of office space.
Vacancy rates between classes varied, but were steepest in the B-class at 31.8 per cent and C-class at 28.1 per cent. AA- and A-class vacancies were also up from the previous quarter at 17.6 and 18.9 per cent, respectively.
“We are seeing tenants exploring A-class buildings as rental rates have softened and there are more options available to choose from,” said Joe Binfet, managing director of Colliers International in Calgary.
“The migration to premium space puts upward pressure on vacancy rates in the B and C class buildings that tenants are moving from.”
Moving forward, Colliers and other commercial real estate firms expect the downtown office vacancy rate to hit between 25 and 26 per cent by 2018.
Three new buildings are set to be completed by that year, adding an additional 2.3 million square feet to the downtown office market. And one million square feet in those buildings remains available for lease.
The Colliers report noted steep vacancy rates in lower class buildings are putting pressure on landlords to reduce rental rates.
Of the 9.21 million square feet of vacant space in downtown Calgary during the second quarter of 2016, 2.75 million square feet was in the B class and 1.18 million square feet was in C class. Colliers noted the average asking rental rates in the second quarter were:
• $10 – $25 per square foot for AA class
• $5 – $18 for A class
• $0 – $12 for B class
• $0 – $10 for C class
A year ago, they were:
• $15 – $35 for AA
• $5 – $25 for A
• $0 – $16 for B
• $0 – $12 for C
A separate CBRE Ltd. report noted rental rates in downtown Calgary are down 57.4 per cent from their peak just before the 2008 financial crisis. Broken down by class:
• 58.9 per cent for AA
• 59.5 per cent for A
• 61 per cent for B
• 63.7 per cent for C
“Tenants are taking this opportunity in the market to improve the quality of their office space by moving up one or two building classes,” said John Savard, principal of office leasing specialist with Bedrock Realty Advisors Inc.
“Tenants in C-class buildings are moving to B-class, and B-class tenants are moving up to A- or even AA-quality buildings.
Savard noted many tenants are planning for the forthcoming millennial-aged workforce; they are finding their younger class of workers want more building amenities such as fitness facilities, restaurants and even day cares.
“The older C- and B-class buildings were not built to accommodate such amenities,” he said. “Furthermore, C-class tenants are often less financially resilient as they are often newer companies that are more susceptible to changes in the economic climate.
“The policies of the current provincial government coupled with low oil prices have created a challenging business environment. Some of the vacancy in B- and C-class buildings are a result of bankruptcies.”

Friday, August 12, 2016

SOLD 西北区Scenic Acres 前置双车库 $519,900

9035 SCURFIELD DR NW c4071897 

买家是过去让我帮助购买第一套房子的年轻IT行业男士,很不错的小伙子,就是当时没有什么合适的年轻姑娘可以介绍。这不,自己找到了,现在要搬到大房子了:)。 


Only minutes walk to schools & the Crowfoot LRT is this warm & inviting former Stepper showhome...a terrific 5 bedroom two storey walkout offering 3 levels of family living in popular Scenic Acres. Built in 1990, this fully finished home boasts newer roof, decorative ceilings & treed South backyard with mature trees & covered patio with hot tub. Simply perfect to raise your family in, this lovely home features formal living & dining room accented by large bay window, South-facing family room with wood-burning fireplace complemented by built-in bookcases, oak kitchen with stainless steel appliances & spacious nook with French door to the backyard deck. Upstairs there a highly-coveted 4 bedrooms up including the relaxing master bedroom with big walk-in closet & ensuite with separate shower & jetted tub with bay window. A 5th bedroom/exercise room is in the finished walkout level along with a huge games/rec room & loads of storage space.

Wednesday, August 3, 2016

How big can foreigners buy farmland in Alberta?

                                                                                                                   This article was originally published as “Our own land” in  Country Guide
Almost every rural coffee shop has its own version of the same story. Foreigners are buying up Canadian farmland and they’re making land prices soar beyond the reach of local farmers as a result.
But is it true?
Maybe. But not likely. In fact, according to the people with their fingers on the pulse, such stories are usually idle rumours at best. Typically, they’re flat out wrong.
But that doesn’t mean there isn’t something that needs explaining at the bottom of it all, with many farmers suspicious about the rapid rise in the price of land.
The numbers are dramatic. Farmland and buildings in Canada doubled in value between 2004 and 2014, according to Statistics Canada. Ontario led the way by a wide margin, reaching $9,243 per acre as of July 1, 2014, but the increases in the West were healthy too, with Alberta rising to $2,092 per acre, followed by Manitoba at $1,583 and Saskatchewan at $1,043.
Farm Credit Canada has pegged the average increase of Canadian farmland at 14.3 per cent in 2014, followed by 22.1 per cent in 2013 and 19.5 per cent in 2012.
But FCC’s chief ag economist, J.P. Gervais, says there’s a simple reason for the price gains, and it has little if anything to do with mysterious overseas buyers. Instead, record farm revenues, coupled with record low interest rates, have had the greatest impact on farmland values.
Heading through 2016, Gervais believes Canadian farmland prices will be stable, mainly because he also forecasts stable crop receipts over the next couple of years and steady domestic interest rates.
“The big increases seen over the last few years are behind us, but we will be able to sustain current levels,” Gervais says.
Gervais adds the vast majority of farmland transactions are between farmers. “I’m not denying there’s an interest from an investors’ standpoint, whether domestic or foreign, but in terms of the impact on the marketplace, it’s anecdotal at best,” he says.

Getting heavy with penalties

Despite the reassurances from Gervais, however, and even though foreign buying is heavily restricted, there’s a sense that “everyone knows” that foreigners purchase farmland — possibly through Canadian citizens acting as fronts — and sometimes in large tracts.
In Alberta, non-residents, foreign residents and foreign-controlled corporations can only own the stipulated maximum of two parcels of land with an aggregate area of 20 acres. In Saskatchewan, the amount is a mere 10 acres, and in Manitoba, it’s 40.
No restrictions exist on foreign ownership in Ontario.
But, says the National Farmers Union’s Cathy Holtslander, “To find out the acres owned by foreign purchases would require a detailed investigation of land titles and the titleholders of each parcel. In provinces that permit foreign ownership, there is no monitoring.”
Holtslander points out Sask­atch­ewan has further restricted ownership after passing farmland ownership amendments. The province’s Farm Land Security Board general manager Mark Folk says the board has always reviewed each farmland transaction to ensure it complies with the legislation.
But with recent amendments to the Saskatchewan Farm Security Act, the board gets additional powers and tools to assist with enforcement.
All financing of farmland purchases must be through a financial institution registered to do business in Canada, or a Canadian resident, says Folk.
Also, the new amendments place the onus on the purchaser to prove compliance with the legislation. If they can’t prove they are in compliance, they won’t be able to buy farmland, or will be asked to divest their farmland holdings.
“Fines are also increasing for being in contravention of the legislation from $10,000 to $50,000 for individuals, and from $100,000 to $500,000 for corporations,” says Folk.
The board can also impose administrative penalties of up to $10,000 if, for example, a purchaser doesn’t provide required information in a timely manner.

That story about China

China-origin buying is always near or at the top of the foreign-buying rumour mill. But Tim Hammond, president and CEO of Hammond Realty, believes everyone who has purchased farmland in Saskatchewan over the past few years is a Canadian citizen, Canadian resident, or has an exemption to do so.
“The local coffee shops love to talk about ‘foreigners’ buying Sask­atchewan farmland, but most of it is non-verified chatter,” says Hammond, whose Biggar, Sask., firm specializes in the province’s farm and ranch real estate. “The vast majority of farmland transactions are neighbour to neighbour and farmer to farmer”
Farmland values are primarily driven by farm receipts and net farm income, Hammond says.
“The public perception is that ‘foreigners’ or ‘investors’ are driving farmland values out of reach for farmers. There might be isolated incidents of this, but the vast majority of market movements have been driven by producers,” says Hammond.
Manitoba too has seen farms snapped up by producers, often before they even hit the market.
Realtor Sheldon Froese of Canadian Farm Realty in Steinbach, Man., recalls when most of his business came from European buyers. Before the 2007 to 2009 financial crisis, about 80 per cent of his business came from producers immigrating to the province to farm.
But that changed following the worldwide economic collapse, and then the barrier got even higher when land values raced upward.
“We used to spend about five weeks a year overseas doing seminars, and I think the last time we did that was about five years ago. It just isn’t worth it anymore. That has completely dried up,” says Froese, guessing European buying may not even represent as much as five per cent of his business.
Froese finds that if Manitoba land isn’t going from one local farmer to another, it’s to producers from other provinces like Ontario, B.C., Alberta and even Quebec, where land prices are higher.
“Manitoba and Saskatchewan are still the most affordable places to go for good quality land,” Froese says. “(Buying’s) mainly within country right now.”

Investors look elsewhere

Interest from non-ag investment funds is off too.
“About four or five years ago that was a big thing; there were lots of investment funds buying land and renting it out, but that’s slowed down,” says Froese. “Right now we are in a market where it’s basically farmers buying land to farm.”
In Alberta, the province encourages joint ventures between non-Canadian enterprises and Alberta companies, and Service Alberta’s Foreign Ownership of Land Administration (FOLA) does work to keep on top of who’s doing what.
Whenever Alberta farmland is acquired by a Canadian citizen or a Canadian-controlled corporation, the purchaser is required to provide a statutory declaration that includes a sworn oath confirming they aren’t holding the land as a trustee or on behalf of anyone else.
Even in Ontario, it’s no Wild West. “We are still selling land to foreign buyers, but I think there’s a lot less than what the general public has been led to believe,” says Phil Spoelstra of Remax Farm Ontario Team. “I have sold two farms to Chinese buyers and they were both Chinese Canadians and they live on the farms and rent them out.”
European buying spiked in the 1970s, but has dwindled significantly. “It’s much, much smaller; I would say far less than 10 per cent of our sales,” says Spoelstra.
University of Guelph’s Brady Deaton thinks the percentage of foreign ownership of Ontario farmland is likely very small.
“In a 2013 random survey of southern Ontario farmers, farmers identified approximately one per cent of the land they rented as ‘foreign’ owned,” Deaton says. In the survey, 207 Ontario farmers were asked questions about the largest parcel of farmland they rented, and only two indicated that their landlord was based outside of Canada.
“While this is the result of a small sample and more research is needed, this small percentage parallels foreign ownership of farmland in the United States,” says Deaton, noting the USDA reports show less than two per cent of U.S. forest and farmland is owned by foreign investors.
“Interestingly,” Deaton says, “Canadians are the largest foreign owner of forest and farmland in the United States.”