Read my interview from the July/August issue of The Canadian Real Estate Magazine. The editor was curious about whether or not Hamilton’s market was still a good place to invest. Here was my response.
Hamilton was one of the first areas of Ontario to benefit from the investor feeding frenzy of 2016. It hasn’t been spared any of the drama being seen in the rest of the Golden Horseshoe – sales are down; prices are stagnant – but according to Michael St. Jean of St. Jean Realty, the city is still working its way up from a decades-long economic coma, and investors are still making money.
“Investors are still everywhere,” he says. “They’re knocking on our doors on a daily basis. I think the investors who were looking into Hamilton a few years ago were really, really early. I think the real mass development is just about to get underway.”
St. Jean points to the arrival of big-name developers like Tridel and Dream, the expansion of the local airport, and a fully approved LRT system as signs that the city’s rebirth is still in its embryonic state. “As far as I’m concerned, the best opportunities are yet to come,” he says.
St. Jean is still a firm believer in the city’s North End, particularly around James Street, as well as Hamilton Centre and Hamilton East, where Victorian-era detached homes can still be found in the $300,000 to $400,000 range. He says a number of affordable, unique pre-construction opportunities will also be available in the downtown core in the next 12 to 24 months, presenting an alternative to the condos that are now selling for between $500 and $625 a square foot.
St. Jean reports that rents in the city are rising “very quickly.” Despite a slowdown in sales, Hamilton’s student population (70,000+ strong) and growing number of healthcare workers aren’t going anywhere. St. Jean says detached low-rise properties downtown can rent for between $1500-$2000 a month, while areas like Ancaster and Dundas, where prices will be significantly higher, often see townhomes renting for $2000 and up per month and detached properties renting for as much as $3000.
If the questions is, “Has Hamilton peaked?” the answer seems to be a resounding no. “If your worried about missing out, I think we’re still in the very early stages,” St, Jean says. “We may not be in the first inning, but we’re probably in the third or fourth inning at best, if we’re lucky. There’s lots of opportunity,”
