Q&A with Cheryl Rice, president, PMA Brethour Ottawa
August 28, 2019
New Home + Condo Guide spoke with Cheryl Rice, president of PMA Brethour (Ottawa). She leads a team of professionals who provide new-home builders with market research, sales, marketing and training services. With 25+ years experience, she has launched major residential/commercial developments, lowrise and condominium projects.
We asked Cheryl for her insight into the Ottawa real estate market. Here’s what she says about how condos are making a comeback and why they are a good home choice and investment.
New Home + Condo Guide: The Ottawa skyline and streetscapes have been changing in recent years. We’re seeing a lot of new condo apartment buildings going up. Uniform Echo, Claridge’s 45-storey Icon tower and Lamb Development’s 20-storey SoBa, come to mind. What do you think is contributing to this increase in new condo development?
Cheryl Rice: To provide some context, Ottawa experienced a condo boom in 2013 that quickly over-saturated the market, resulting in several failed projects. Since then, condos have been making a comeback and the market is doing much better overall. Condo sales in Ottawa do not, however, make a significant contribution in the grand scheme of things, and mid-highrise buildings specifically are minute in the bigger picture.
For example, year-to-date sales of condominium apartments located in central Ottawa (where there is the highest concentration of mid/highrise condo apartments), comprise only 5.5 per cent of Ottawa’s total new-home sales. The true test for condo apartments is already playing out, as new projects are brought to market this year into what was once Ottawa’s ‘slumbering market’. One example is Claridge’s Moon, which had a strong new opening in May, and who has another building (Claridge Royal) in the pipeline. For buyers seeking homeownership, affordability is a key factor fueling the demand for condos, as well as close proximity to transit (the LRT), employment and amenities.
NHCG: Some industry experts are saying Ottawa is an emerging hot real estate market. From your day-to-day perspective on the local housing scene, do you agree?
CR: Ottawa has been an emerging hot real estate market for some time, and based on new and resale home sales, I suggest we’re there. The Ottawa market has improved year-over-year since 2015 and the election of a Liberal prime minister in 2016. Since then, Ottawa’s fundamentals have been, and continue to be, strong, creating a resilient market with jobs (in particular in the tech and public sectors), a strong local economy, population growth, and affordable housing relative to other major Canadian markets. These factors drive consumer confidence and demand, so much so that Ottawa has been in a seller’s market frequently and consistently throughout the last two years.
NHCG: What kind of buyers are a good fit to purchase a pre-construction, new condo and why?
CR: Buyers of pre-construction product do not need or want to move right away, so the longer closing dates are attractive to them, especially to investors. Also, during the pre-construction phase, home builders usually offer more competitive pricing to raise the funds needed to break ground faster (construction activity attracts buyers).
As well, at this stage, buyers have a better choice of unit, floor and exposure, plus the ability to customize their home to their personal preferences.
NHCG: Finally, what are some of the benefits of buying a new condo versus a resale?
CR: Today’s new condos offer more luxurious and trendy finishings, features and amenities. Buyers who choose new over resale are usually not interested in renovating or upgrading an older condo – they want a move-in-ready home. Lower condo fees are another important benefit; older condo buildings require more maintenance and repairs, hence higher condo fees.
Many of the new condo projects in Ottawa are being built within close proximity to transit, highways, and amenities, making location an important benefit to buyers. Some projects have the added benefit of providing retail space, which offers convenience to homeowners while creating an appealing ambiance at street level (boutiques, stores, personal services, etc.). And finally, buyers have original ownership; they simply don’t want to buy used. New condos also offer a more flexible, manageable deposit structure, giving buyers more time to accumulate a down payment.
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About Marlene Eisner
Marlene Eisner is an award-winning print and online editor and journalist. She has written on many topics including new homes and condos in Montreal, Ottawa and Vancouver, and has been the editor for numerous magazines and newspapers in Quebec and Ontario.