The status of the Real Estate market is usually a good indicator of how a country’s economy is performing. In Canada, according to BNN, Real estate activity was the biggest year-over-year contributor to growth, adding C$218.8 billion to Canada’s gross domestic product in April 2016, up from C$211.6 billion in the same period last year (published June 2016).
During the coming 12 years, the province of Ontario is planning to invest over C$160 billion in infrastructure, the largest in its history as a province. This is a result of a population growth that is expected to increase by 40% by 2041 (reaching 19m up from 13.6m in 2014). That is an increase of 5.4m in 27 years (200,000 per year). Since 2015, the province has announced support for more than 475 projects that will:
- Keep people and goods moving
- Connect communities
- Improve quality of life
Such investment in infrastructure is expected to create 110,000 jobs (on average) annually. This will obviously translate to an increase in economic activity in the province.
The city of Vaughan, where the highest population growth was experienced between 2006-2011 (20.7%), is one of the cities in the Greater Toronto Area where three major infrastructure projects are taking place:
- Highway 427 Expansion:6 km from Highway 7 to Major Mackenzie Drive.
- Toronto-York Spadina Subway Extension: a subway line from Downsview station to Vaughan Metropolitan Centre (located at Hwy 7 and Hwy 400).
- Mackenzie Vaughan Hospital: The first hospital to be built in Vaughan and the first hospital in Canada to feature fully integrated “smart” technology which features systems and medical devices that can speak directly to one another to maximize information exchange.
Background information – The Greater Toronto Area (GTA)
The Greater Toronto Area (GTA) is located on a 7,124 km² area with a population of around 6 million (2011 Census). The GTA is comprised of 5 regions (Toronto, York, Halton, Peel & Durham) and includes 25 municipalities within those regions. The largest 7 municipalities in terms of population are as follows:
|Municipality||Population 2015 (est.)||% of Total GTA Population|
* The city of Vaughan is the 5th largest city in the GTA and the 17th largest city in Canada
Background information – Real Estate Stats:
Average price of a detached house sold in Sept 2016 (Source: Toronto MLS)
|Municipality||Average Price of Detached House Sept 2016|
In addition to the aforementioned three major projects planned in Vaughan, there are a number of reasons that make Vaughan an attractive city for families, businesses and investors.
- The city is building a new downtown area referred to as Vaughan Metropolitan Centre (VMC). Known as the largest and most significant development project in Vaughan’s history. It will include more than 1.5 million square feet of commercial office space, 750,000 square feet of retail space and 12,000 residences. One of the key features of this new downtown location is its connectivity to the subway network through the Toronto-York Spadina Subway Extension project. This creates a direct subway connection between the city of Vaughan and the city of Toronto, the fifth largest city in North America and the economic hub of Canada.
- Another main attraction in the City of Vaughan is Vaughan Mills Shopping Centre which is recognized as the 10th largest indoor shopping mall in Canada and 7th largest in Ontario. It was opened back in 2004.
- Just North of Vaughan Mills Shopping Centre is Canada’s Wonderland, Canada’s largest Theme Park which opened back in 1981. Canada’s Wonderland is ranked third in the world by number of roller coasters.
- The Three Major Infrastructure Projects in VaughanWest of Vaughan and bordering with Brampton, Toronto and Caledon is the Vaughan Enterprise Zone (VEZ), an area of 1,120 Hectares encompassing mainly large parcels of land suitable for corporate Head Quarters, National Logistics and Distribution Centres. The area is located 10 minutes from Toronto Pearson International Airport (where 45% of Canada’s Air Cargo Volumes is handled). It is also where CP Rails largest intermodal terminal exists which has a handling capacity of more than 600,000 containers per year.
Vaughan is certainly one of the cities to consider when making a personal or a business Real Estate decision. The forecasts are promising for the city’s real estate market on both the personal and business levels. Connectivity, services, location and demographics indicate a healthy economic growth phase over the coming years and therefore, a great place to be part of.
Follow our blog for more information about the Real Estate and Mortgage market in the Greater Toronto Area.
Mohammad Abusaa (M. Abusaa)
Real Estate Broker of Record & Mortgage Agent
D. 416 825 7775