Newfoundland Economy, Real Estate and Tourism

March 1, 2008 · Filed Under St. John's Real Estate · Comment 

Today, The Telegram included a “Horizons” section in the Saturday paper. Horizons is an Annual Business and Industrial Review and Forecast. It was evident that the pages were filled with talks of boom and wealth for Newfoundlanders. I was fortunate enough to receive a call last week for an interview with The Telegram for the real estate portion. How was I contacted - this blog. Other then the fact my name was spelled incorrectly I was pleased.

As I read through Horizons it was interesting to note the various headlines were powerful and promising. Article titles read “oil wealth driving provincial economy, impending boom, real estate hot thanks to Hebron Ben Nevis, growth and innovation in changing times, commercial industry growing.” Not only is Newfoundland and Labrador’s capital city St. John’s noticing a significant increase in the housing market, but Torbay, Flatrock and Conception Bay as well.

Tourism was another hot topic. References to new hotels in the downtown St. John’s (five hotel proposals) and a flourishing cruise industry. 61,000 tourists are expected to visit “The Rock” for 2008 via cruise lines.

It’s clearly one of most promising times for Newfoundland.

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Why the delay in New Home Construction in Newfoundland and Labrador?

January 23, 2008 · Filed Under First Time Buyers, Market Trends, New Home Construction, Real Estate Articles and St. John's Real Estate · Comment 

While new home construction in Newfoundland and Labrador is booming, it is not uncommon now to see a six month closing date on new home construction. With a good percentage of the trades people presently working in Western Canada, some contractors are finding it difficult to recruit enough local trades people.

It is estimated that as much as10,000 Newfoundlanders and Labradorians are working out west for companies such as Syncrude, Suncor and Flint Energy, to name a few.

An estimated 4,000 are working on a rotational basis commuting to and from the province, bringing millions of dollars to local communities throughout Newfoundland and Labrador. Some of these commuters are staying in camps, where food, lodging and travel to and from the province are all fully paid.

Workers are drawn to jobs that often start above $100,000 per year and lots of overtime.

While it all may seem wonderful, it has to be a burden on the family structure with 20 days away and back home for 8 days of rest in a repeat cycle.

Can it last? What kind of wages would be required to keep at least some of our trades people home, and what affect will this have on the price of new construction?

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