The provincial government has introduced new legislation to cool down the overheated real estate market.
Many of the measures are aimed at the G-T-A…. where prices have sky-rocketed.
But other measures — like rent controls on newer buildings –will have an impact province wide.
Darryn Davis takes a look at how the new rules could affect kingston’s real estate market.
When it comes to Kingston’s real estate market Matt Lee says it isn’t overheated but it is strong.
“We have these very stable increases that happen you know 3, 3 and a half per cent per year depending on where you are in the city but we don’t see this 33 per cent like in Toronto. ”
The province has introduced a number of measures intended to keep housing for Ontarians affordable.
One of them is a vacancy tax that can be implemented by municipalities to curb speculators in the market.
Kingston’s mayor says it doesn’t appear to be an issue in the limestone city — but he’s already been speaking to the local M.P.P. about the tax.
“I think we need to understand some more information about the details of how the tax might work and certainly we would want to have a look at our local market to see if that would be something we are interested in. ”
Tying rent increases to the rate of inflation and capping it at 2 and half per cent may have the biggest impact province wide and in Kingston.
The new rent controls come as happy news to renters but not necessarily to developers.
“Apartment building developers will very likely slow down if not completely halt their development of multi-unit residential buildings and that’s a concern. ”
“Lee says it’s going to take time to be able to properly assess just what kind of an impact the rent controls are going to have on development.”
“We’re going to have to basically judge that over the next year to see how it actually impacts us. ”
To try and offset that potential impact on developers the province has set up a 125 million dollar fund for the next 5 years.
The money would offer a rebate on development charges for the construction of new rental buildings.
Whether the money is enough to make a difference is uncertain.
Darryn Davis CKWS news Kingston.