The Official Moncton, NB Project Thread

[MonctonRad]

Good article about MID (Moncton Industrial Development) in the T&T today.

Highlights:

- They are running out of lots to sell in their four existing parks.
- They will be making a proposal to PAC regarding a new industrial park early in 2022. Presumably this will be for that wedge of property on the SW corner of the TCH/15 interchange, across from the airport, extending to Shediac Road. There has already been surveying and some land clearing within this property.
- Land sales by MID totaled $4.3M (2020), $7.6M (2021), and they already anticipate $5.6M in sales in just the first quarter of 2022, constituting 59 acres under negotiation.
- The decision by Walmart to locate their new distribution centre in the Caledonia Industrial Park made a lot of people sit up and take notice, especially in the United States. This is what is driving a lot of the current land sales.
- One recent land sale (13 acres) is for Ideal Roofing, an Ottawa based firm planning on building a new plant making steel roofing products.

Success breeds success. I am glad to hear that the Walmart distribution centre is acting as an accelerator for even more development in our industrial parks.

[MonctonRad]

The city of Moncton has released their building permit valuation for 2021.

the total is $296.5M (apparently a record). Of this, $163.5M was for residential construction and $102M was for commercial and industrial activity. There was $24M in institutional activity according to the T&T article.

[MonctonRad]

According to the T&T, the average home price in greater Moncton has cracked $300k for the very first time - $306,100, which is 38% higher than last year.

Average single family home prices in greater Moncton:

- Dieppe - $413,400 (up 94.5% over the last five years)
- Moncton - $311,600 (up 94.0% over the last five years)
- Riverview - $294,500 (up 92% over the last five years)
- Surrounding areas - $274,900 (up 104% over the last five years)

- There were 4,551 housing sales this year (up 18%)
- Inventory is at a 30 year low.
- There were 406 homes for sale at the end of December (down 37.6% from the same time last year)

Speculators are moving into the market as we have been historically undervalued with relation to other larger centres in the country. These people will "fix and flip" properties for a handsome profit. There are many people escaping from Ontario willing to pay a premium for a good quality property down here. There is no end in sight.

[bridgeoftea]

Originally Posted by MonctonRad

According to the T&T, the average home price in greater Moncton has cracked $300k for the very first time - $306,100, which is 38% higher than last year.

Average single family home prices in greater Moncton:

- Dieppe - $413,400 (up 94.5% over the last five years)
- Moncton - $311,600 (up 94.0% over the last five years)
- Riverview - $294,500 (up 92% over the last five years)
- Surrounding areas - $274,900 (up 104% over the last five years)

- There were 4,551 housing sales this year (up 18%)
- Inventory is at a 30 year low.
- There were 406 homes for sale at the end of December (down 37.6% from the same time last year)

Speculators are moving into the market as we have been historically undervalued with relation to other larger centres in the country. These people will "fix and flip" properties for a handsome profit. There are many people escaping from Ontario willing to pay a premium for a good quality property down here. There is no end in sight.

Honestly these days you don't really need to do anything to a place to make a profit. Sadly it doesn't look like the price trend is going down anytime soon.

[MonctonRad]

The January PACS agenda is out for Moncton. It is disgustingly sparse; quite literally requests for only a couple of residential garage permits

[MonctonRad]

We now have complete 2021 building permit valuations for the extended Moncton metropolitan area (save for unincorporated areas).

Moncton - $296.5M
Dieppe - $101.9M
Riverview - $55.8M
Shediac - $54.0M

TOTAL - $508.2M

That's right, building permit valuation in the extended Moncton metropolitan area for 2021 exceeded a half billion dollars!!!

[bridgeoftea]

Originally Posted by MonctonRad

We now have complete 2021 building permit valuations for the extended Moncton metropolitan area (save for unincorporated areas).

Moncton - $296.5M
Dieppe - $101.9M
Riverview - $55.8M
Shediac - $54.0M

TOTAL - $508.2M

That's right, building permit valuation in the extended Moncton metropolitan area for 2021 exceeded a half billion dollars!!!

Great news!

[josh_cat_eyes]

Originally Posted by MonctonRad

We now have complete 2021 building permit valuations for the extended Moncton metropolitan area (save for unincorporated areas).

Moncton - $296.5M
Dieppe - $101.9M
Riverview - $55.8M
Shediac - $54.0M

TOTAL - $508.2M

That's right, building permit valuation in the extended Moncton metropolitan area for 2021 exceeded a half billion dollars!!!

I’m very surprised how close Shediac’s total is to Riverview’s.

[MonctonRad]

Originally Posted by josh_cat_eyes

I’m very surprised how close Shediac’s total is to Riverview’s.

Lot's of apartments going up in Shediac right now.

If you ask me, Shediac is just beginning to take off. I predict at least a decade of major growth ahead.

Riverview's numbers aren't shabby either. Their building permit valuation the previous year was only about $32M, so they are up about 2/3rds in valuation too.......

[Taeolas]

It'll be interesting to see how the trends keep going and when they reach the next few milestones. Estimating when they hit 1B might be too far out, but we should be able to make a decent guess for when they hit 750M.

[MonctonRad]

With other major projects in the offing (especially Ashford and the ASEC), I can foresee over $600M in annual regional building permit valuation in the not too distant future.

[MonctonRad]

I heard an interesting factoid from a reliable source today.

Apparently there is a two year wait for crane rental in the greater Moncton area.

Because of this there is some delay in apartment construction, and, with in-migration into the area of 3,500 per year or so, there will be at least a 10 year backlog in new apartment construction before supply begins to catch up with demand........

[josh_cat_eyes]

Originally Posted by MonctonRad

I heard an interesting factoid from a reliable source today.

Apparently there is a two year wait for crane rental in the greater Moncton area.

Because of this there is some delay in apartment construction, and, with in-migration into the area of 3,500 per year or so, there will be at least a 10 year backlog in new apartment construction before supply begins to catch up with demand........

That’s crazy! I’d believe it though!

Anybody wanna crowdfund buying a crane? We could make our money back in a couple years.

[Taeolas]

Wow, that is incredible.

Were I in the crane rental business, I'd be trying to get another crane or three into the region to strike while the market is hot.

[jonny golden]

Lets hope that the crane rental companies recognize the opportunity and add to their inventory. There's a lot of those large mobile cranes that I've seen around too. And of course every time a project gets finished, the crane moves on to the next location. Hopefully the crane availability situation wont hinder things too much.

[BaseballFan]

Won't be much need for cranes if the multi-res tax assessments head in this direction. Based on total 2022 levy of $2.7385 per $100 of assessment, that's $469,938 or $7,342 per unit per year. Yikes.

[MonctonRad]

Or $611.83/month for each unit, which is probably about half of the rental cost for the tenant.

Add in the cost of amortization for the owner, as well as maintenance and upkeep, and there wouldn't be too much profit left over.

Is it any wonder that monthly rents are mushrooming every year?????

[adamuptownsj]

I don't know how the province can justify these assessments.

[Ammn_guy]

To everyone harping on landloards, Between city Tax,utility fees, insurance, turnover costs, income tax (minimum 15-30% usually), it puts the base breakeven cost of a unit in even he crappiest of triplexs at about 600-1000 a month. And thats before mortgage.

Landlords are giving up waiting for a reduction of taxs and cashing in on the high sale prices. which.. will only drive the rents higher due to the higher morts on the new sales.

Renters, You want some one to complain to start talking about moncton and the provinces ridiculous tax rate.

Originally Posted by MonctonRad

Or $611.83/month for each unit, which is probably about half of the rental cost for the tenant.

Add in the cost of amortization for the owner, as well as maintenance and upkeep, and there wouldn't be too much profit left over.

Is it any wonder that monthly rents are mushrooming every year?????

[MonctonRad]

And yet the landlords will still get blamed as being greedy.

The New Brunswick Apartment Owners Association should really consider hiring a PR firm to air their concerns with the public, and to put more pressure on the province and the municipalities to lower the property tax assessment rates.