Demographics Set to Drive Condo Markets in Montreal and Quebec



    Genworth Report: Demand from baby boomers to support growth through 2011

    MONTREAL, Sept. 12 /CNW/ - Growing numbers of Montrealers and Quebec City
residents over age 55 will drive continued demand and rising prices for condos
as baby boomers downsize their homes, according to new data released today by
Genworth Financial Canada, a subsidiary of Genworth Financial, Inc.
(NYSE:  GNW).
    Genworth's Summer 2007 Metropolitan Condominium Outlook reports that
Montreal's average resale condo price will rise from $179,358 in 2007 to
$205,351 by 2011, while in Quebec City resale condo prices are expected to
climb from $132,470 in 2007 to $148,131 in 2011.
    "In Quebec's two largest cities the aging populations have increased
substantially over the past 20 years. The 55+ segment now makes up close to a
quarter of the population in Montreal, and a full 27 per cent of Quebec City's
population," said Peter Vukanovich, president Genworth Financial Canada.  
"Growing demand from this significant condo demographic will keep price growth
steady as these boomers move into a new life stage."
    Census figures released in July by Statistics Canada show the number of
Canadians aged 55 to 64, many of whom are approaching retirement, is at a
record high of 3.7 million.
    Developers are responding to the changing housing demands of this boomer
generation. Condominium starts are expected to slow in 2007 and continue to
fall to a lesser extent through 2011 in both Montreal and Quebec City,
however, as builders seek to clear inventories before embarking on new
construction.
    "Although it has not yet impacted the buyer profile significantly,
there's no question that we are seeing an increased interest in our
condominiums from the baby boomer generation as they seek to downsize or
relocate to the downtown area. We are convinced that in the coming years it
will become a more important segment for our market," said Jonathan Sigler,
Co-President of Groupe Prével, a leading Montreal condo builder.
    The Summer 2007 Metropolitan Condominium Outlook reviewed resale condo
markets in Quebec City, Montreal, Ottawa, Toronto, Calgary, Edmonton,
Vancouver and Victoria. All eight markets registered price growth in 2006 and
are forecast to continue to grow this year and through 2011.

    

    Average Resale Condo Price by City: Forecast

    -------------------------------------------------------------------------
    City           2007        2008        2009        2010        2011
                   Forecast    Forecast    Forecast    Forecast    Forecast
                   Percentage  Percentage  Percentage  Percentage  Percentage
                   Increase    Increase    Increase    Increase    Increase
    -------------------------------------------------------------------------
    Quebec City    $132,470    $135,218    $139,210    $143,645    $148,131
                   6.5         2.1         3.0         3.2         3.1
    -------------------------------------------------------------------------
    Montreal       $179,358    $184,875    $191,316    $198,250    $205,351
                   5.2         3.1         3.5         3.6         3.6
    -------------------------------------------------------------------------
    Ottawa         $185,272    $189,616    $196,100    $202,378    $208,926
                   5.6         2.3         3.4         3.2         3.2
    -------------------------------------------------------------------------
    Toronto        $222,893    $229,205    $236,270    $244,973    $254,049
                   4.4         2.8         3.1         3.7         3.7
    -------------------------------------------------------------------------
    Calgary        $270,169    $293,335    $306,722    $315,684    $322,838
                   19.8        8.6         4.6         2.9         2.3
    -------------------------------------------------------------------------
    Edmonton       $224,621    $234,878    $248,795    $257,958    $263,586
                   36.4        4.6         5.9         3.7         2.2
    -------------------------------------------------------------------------
    Vancouver      $314,471    $327,163    $341,116    $352,800    $365,491
                   7.2         4.0         4.3         3.4         3.6
    -------------------------------------------------------------------------
    Victoria       $264,471    $273,908    $285,071    $293,790    $302,603
                   6.3         3.6         4.1         3.1         3.0
    -------------------------------------------------------------------------
    Sources: The Conference Board of Canada; Canada Mortgage and Housing
    Corporation; Canadian Real Estate Association.
    

    The Genworth report also noted that condos are becoming a more attractive
option for first-time homebuyers, given the rising price of new detached homes
in Canada. As reported by Genworth's Summer 2007 Metropolitan Housing Outlook,
new homes are forecast to average $378,000 in Canada this year, a six per cent
annual increase.
    "We work with our lender partners and mortgage professionals to provide
low-down payment mortgages for these first-time buyers," said Vukanovich. 
"The affordable monthly payments allow them to become homeowners and start
building equity sooner."
    The full Summer 2007 Metropolitan Condominium Outlook is available at
www.genworth.ca.

    About Genworth Financial Canada:

    Genworth Financial Canada, The Homeownership Company, works with lenders,
mortgage brokers, real estate agents and builders to make homeownership more
affordable and accessible throughout Canada. The company combines global
experience in mortgage insurance with technological and service leadership to
deliver innovation to the mortgage marketplace.
    Genworth Financial Canada issues reports on Canada's housing market in
spring, summer and fall; and on Canada's condo market in winter and summer;
all in conjunction with the Conference Board of Canada. Our intention is to
educate and provide useful information to Canadian consumers, homeowners,
future first-time homebuyers and governments. We believe homeowners and
homebuyers require up-to-date information about Canada's housing market to
make informed decisions about homeownership, for many the most important
investment of their lifetime. Genworth Financial Canada also listens to
homebuyers about their challenges and concerns, to make us better informed
about how we can offer products that help Canadians realize the dream of
homeownership.
    Additional information about Genworth Financial Canada is available at
www.genworth.ca or through mortgage lenders.

    About Genworth Financial

    Genworth is a leading insurance holding company, serving the lifestyle
protection, retirement income, investment and mortgage insurance needs of more
than 15 million customers. It has operations in 27 countries. For more
information, visit www.genworth.com.





For further information:

For further information: or to arrange interviews: Sherri Leclair,
Genworth Financial Canada, Marketing/Communications Leader, (905) 287-5408,
sherri.leclair@genworth.com


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