An analysis of the financials of some of the world’s largest builders of luxury home construction reveals a steady rise in profits as interest rates rise and prices rise.
In Canada, the biggest company is Toronto-based Canopy Growth, which made $5.8 billion last year from the sale of its residential property holdings, according to data compiled by The Globe and Mail.
The Vancouver-based Canadian Imperial Bank of Commerce, which is the nation’s largest lender, made $2.6 billion last month, according a statement.
The Toronto Real Estate Board (TRB) said in a statement that Canopy’s sales were up 10 per cent in March.
“This is a significant year for the construction industry in Canada, with record numbers of new home construction projects coming on line,” TRB chair Doug Porter said in the statement.
“Construction is expected to reach record highs in 2019, with the sector accounting for more than one-third of all residential construction in Canada.”
Construction companies such as Canopy are among the best-paid in the world, making an average $2,500 per hour, according the National Association of Realtors.
They’re also among the richest in Canada.
While Canadian real estate is still relatively expensive compared with other developed countries, prices are falling in many parts of the country, and there are signs the market is cooling.
Vancouver has seen the largest drop in prices, while Toronto is among the cities with the lowest price increases, according data from Zillow.
A report from real estate research firm Trulia found that while the Toronto market is not far from the US, prices there are up 8.3 per cent.
In Vancouver, prices rose 4.3 points in March compared with the same month last year.
Prices rose 5.2 per cent from the same period last year in Toronto.
A Trulia report earlier this year found that in Toronto, average prices for condos jumped 9.1 per cent between January and March.
Toronto’s condo market is “an important driver of home prices and growth,” said Trulia’s chief economist, Doug Porter.
“The continued strength of the Toronto housing market reflects strong fundamentals, which are likely to continue to improve, even if the economy continues to lag,” he said.
Canopy has been one of the biggest players in the Canadian real-estate market, with revenues of $4.5 billion in 2016.
The company has about 300 construction projects under construction, mostly in Toronto and Vancouver, according, its website.
The largest Canadian construction company, Lend Lease Canada, made about $3.8 million last year, with construction of 1,716 homes in the Greater Toronto Area, which covers the Toronto area, and the Greater Vancouver area, which includes the Toronto suburb of Scarborough.
Lend said it expects to see construction for its new residential projects in 2019.
“We are seeing strong demand for our projects and we expect the demand for new residential construction to continue through 2019,” the company said in an emailed statement.
Construction for new condos rose 14 per cent last month in Toronto compared with March.
It rose 10.5 per cent across Canada.
The Canadian Real Estate Association says it expects home prices to fall 5.1 points in 2019 from the year before, according Toews reports.
Toronto is also in the top 10 for sales of detached homes.
In the GTA, the average sale price in March was $3,936, a 20 per cent increase from the month before.
That compares with a median sales price of $2:743 in March 2015.
In Hamilton, the market for detached homes was up 5.6 per cent compared with last year at $1,976, a 25 per cent gain from the previous year.
The number of sales of condos has also increased 10.4 per cent, while the number of condos per person has dropped 8.7 per cent since last year when it was just over two per cent per person.
The average price for a condo in March in the Toronto and Hamilton areas was $2 million, a 2.3-per-cent increase from last year’s price.
A home is a big investment, especially for first-time buyers who want to live in a place that’s comfortable, with good transportation, the best amenities and a large selection of local restaurants.
Toronto-area buyers have the option of purchasing a house in a high-rise condominium tower or an apartment in a low-rise townhouse.
The difference is how many bedrooms they need and how much they pay for the place.
In most areas of the GTA the number is around two or three bedrooms.
The median condo price in Hamilton is now $2-million, down 5.7 percent from the median price in April.
It’s down more than 20 per,cent in the GTA in the past year.
According to Trulia, in the 10 largest markets in Canada there are now fewer than 100,000 units under construction.
In Toronto, there are more than 600,