Canada: Economic Recovery Will Be Shaped Like A Hockey Stick

According a recent report from the Bank of Canada, the country’s recovery from the recession will be shaped more like the steady curve of ‘a hockey stick’ rather than bouncing back like a V.

Despite its secure banking system, rated as number one by the World Economic Forum, Canada has not managed to dodge the recession altogether. However, while neighbouring US and the UK continue to drown in negative statistics, in Canada, the green shoots of recovery are beginning to sprout.

Take unemployment for example. In April, the UK registered another 57,100 on the dole and the US a staggering 539,000. Canada on the other hand actually gained an unexpected 35,900 jobs.

Statistics Canada stated that the positions added during the month were driven by an increase in self-employment. Most of the job gains were in the information, culture and recreation sectors, as well as business, building and agriculture.

Also showing relative resilience during the whole of the first quarter of 2009 was the Canadian Real Estate Market.

According to Royal LePage, Canada’s oldest and largest Real Estate Agent, regional disparities in quarterly housing prices showed that the market in Atlantic Canada outperformed all of the other areas of the country as hardy local economies have spurred house price growth across the three housing types surveyed.

Their quarterly House Price Survey shows that house prices in Halifax, the capital of Nova Scotia in Atlantic Canada have risen between 5.7 and 16.6% since the last quarter of 2008, quite a different scenario from that of the saturated Real Estate market across Europe where the demand for housing and prices continue to plummet.

Ailse MacFarlane, Marketing Director from Landcorp International specializing in international development land commented “Atlantic Canada continues to remain one of the most attractive places to invest in overseas property and land. Not only have prices of property risen over the last quarter showing a demand for housing and resilience against the effects of the recession, it also offers quality of life, natural beauty and opportunity for people considering emigrating. Canada welcomes around 250,000 immigrants each year with a large proportion drawn to Atlantic Canada”

Ailse continues, “Despite the current economic climate, investors continue to show great interest in our development land opportunity in Nova Scotia. It is a secure asset and a very attractive investment alternative. What’s more, the land we promote qualifies for Self Invested Personal Pensions (SIPPs) and all the associated tax benefits for UK tax payers.”

Landcorp are currently marketing the land in Nova Scotia in conjunction with the development company Terra Firma Development Corporation Ltd. Terra Firma own the land and will develop a luxury lifestyle resort named ‘Forest Lakes Country Club’.

Forest Lakes Country Club will boast numerous facilities including an 18 hole golf course, driving range, club house, lakes, water sports, bars, restaurants and a luxurious boutique hotel.

Prices per half acre start from just CAD,500 (£21,500 approx) with predicted returns of 100-150% anticipated by 2010 or soon afterwards. At that stage investors can then choose to exit with their profits or flip into a plot and own a piece of real estate. For a limited period, quarter acres are available at CAD,750 (£10,750 approx.).

News submitted by Lucy Brown, Landcorp International

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