Rising number of new starts recorded in Canadian property

The Canadian property market is set to offer increased levels of supply to overseas property investors in the near future, with a record number of housing starts measured in July.

Construction was commenced on 236,500 units last month – an increase of 100 units compared to July, figures from the Canada Mortgage and Housing Corporation (CMHC) show.

On a seasonally adjusted basis, the annual rate of urban starts increased by 0.5 per cent to 202,100 units compared to June.

Starts of units for multiple occupancy in urban areas increased by 3.9 per cent to reach 112,900 in July, while overall urban housing starts increased in two out of five regions across the Canadian property market.

British Columbia appears to be the area to offer the most supply to overseas property investors for urban housing, with a 21.9 per cent increase in starts taking place, followed by Ontario, which saw a 4.2 per cent rise.

“The strong results achieved this past month were attributable to the performance of the multiple starts registered in Ontario and British Columbia, which countered the results in other provinces of the country,” said Bob Dugan, chief economist at the CMHC’s market analysis centre.

From January to July this year the number of actual starts in all areas of Canadian property were up by an average of 3.1 per cent compared to a year ago.

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