By Melanie Brooks
FOR RENT signs are an endangered species in Ottawa. But FOR SALE signs are thriving, with names like Gilmour Place and The Metropolitan.
Ottawa’s rental market—at 0.7 per cent, one of the lowest in the country—is pushing would-be renters to buy instead. And developers in Centretown are stepping in to fill the demand.
“It’s clear there’s no new rental construction,” says Alain Miguelez, market analyst for Canada Mortgage and Housing Corp. “People who were looking to rent are now looking to buy, but they still want to live downtown.”
The result is a return of the condominium market. Several new developments along Bank Street have opened up a few hundred dwellings. In an area that was traditionally a rental market, real estate agents are now struggling to keep up with demand from buyers, says Sally Midwinter, a real estate agent for Royal LePage.
“A lot of people are looking to buy now because there’s a shortage in the rental market and higher prices on rentals. Most experienced realtors can’t handle, as well as we would like, the number of people coming through our doors,” she says.
Domicile Developments is one of the biggest developers in Centretown right now
Its newest project on Cooper Street, between O’Connor and Bank, is almost sold out and construction begins next month.
The company already has plans for a 12-storey complex right next door.
“People want to be downtown,” says Suzanne Gauthier, director of sales for Domicile. The main obstacle to meeting the demand is the lack of available land downtown.
The City of Ottawa made it easier for developers, eliminating parking requirements for Centretown area earlier this year.
“You can now have car-free condos, and that lowers the cost of building,” says Miguelez.
The cost of buying a condo is still higher than renting. The condos and lofts are priced between $99,000-$200,000.
This also means the return of the urban yuppie, typically information technology workers, looking for a home to reflect their newfound wealth.
“These are people who have the money, but don’t have the time to maintain a house,” says Miguelez.
“It certainly is a revival for the downtown core. You’ll no longer see the downtown dying when everyone goes home from work,” says Gauthier. “Centretown is a hip place to be, and more people will bring that spirit back.”