One of the top five safe havens in Canada! 
Real Estate is often said to be one of the best investments money can buy. But, like any financial, values can fluctuate. Christine Otsuka reveals markets in Canada that have shown nothing but steady growth over the years, and could well be the closest things to ‘safe havens’ Having enjoyed strong fundamentals over the past decade, Moncton is probably the closest thing to a safe bet that you’ll find in the Atlantic provinces for real estate investment. Average house prices have increased to $157,186 at the end of August 2009. “The historical pace of growth has been something to depend on in Moncton. We don’t have the big ups and downs – the big increases or major declines – that big places do,” says Ron Wood, president of the Greater Moncton Real Estate Board. “You can compare Moncton to a GIC – a guaranteed investment,” says Wood, “whereas in some places, like Toronto, you might be able to make more money but it’s a bit more risky.” Moncton has enjoyed steady growth in the real estate market because of its solid economy and central location in the Maritimes. About 1.4 million people live within a three-hour drive of ‘the hub city’. “Moncton has long been a favourite place for companies to place outsourcing style businesses.” “It’s the economic star of Atlantic Canada.” The city is a commercial, distribution, transportation and retailing centre. Insurance, information technology, education and the health care sector are major employers, with the unemployment rate hovering around 5%, which is below the national average. Moncton is one of the top 10 fastest-growing metropolitan areas and the fastest growing urban region east of Toronto. It’s home to nearly 70,000 people, but the Greater Moncton Area has a population of about 135,000. It’s currently the most populous metropolitan area in New Brunswick, surpassing Saint John. According to Statistics Canada, Moncton is the only metropolitan area in the Atlantic provinces whose growth rate is above the national average. “Moncton has seen a lot of people returning from out west and from the northern part of the province,” says Wood. “We’ve seen more than our share of in-migration from the rest of Canada. We have more immigration from other countries as well, especially from South Korea. That’s something that’s been increasing in the last five years.” The vacancy rate for rentals has decreased to 5.5% from 6.1% between April 2007 and April 2008, according to CMHC. Continued demand for rental units, particularly from younger people and empty nesters, in combination with a mild decline in rental unit construction have contributed to this spring’s lower vacancy rate, notes CMHC, as supply and demand for rental units is beginning to reach a more favourable balance. The average monthly rent for a two-bedroom apartment increased moderately to about $665, compared to $631 from the year before, which is higher than the provincial average. |