Lower Manhattan plans grounded

The current plan for office development at Ground Zero, which is expected to replace 10 million square feet of office space with five new buildings, is reportedly being opposed by Mayor Bloomberg.

Bloomberg has called for about 10% of that office space to be replaced with 700 apartments and a hotel.

However some commentators believe that Mayor Bloomberg's opposition to the current plan for office development at Ground Zero is scaring prospective commercial tenants away from Lower Manhattan.

We are putting in literally billions of dollars in transit infrastructure upgrades in lower Manhattan," A top downtown rebuilding official said. "We're doing that because we assured the restoration of the financial capital of the world."

Activity levels rise in Canada's resale market

Resale housing activity in Canada has got off to a cracking start at the beginning of 2006, according to a new report.

Statistics released by The Canadian Real Estate Association (CREA) reveals that seasonally adjusted home sales via the Multiple Listing Service (MLS) in Canada's major markets totalled 28,840 units in January 2006, up 3.1% compared to December. 

Seasonally adjusted sales reached their highest monthly levels on record in Calgary and Edmonton in January 2006. In Toronto, actual (unadjusted) sales activity reached its highest level for the month of January since 2002.

A changing economic environment may actually see property price increases slow according to CREA Chief Economist Gregory Klump. He said: "Price increases are generally expected to become more modest as rising interest rates and mortgage carrying costs gradually cool resale housing demand and result in a more balanced market in 2006.”

Western cities may however, buck the trend. Klump added: “ Calgary and Edmonton may prove to be exceptions to the general trend toward smaller price increases this year due to a growing shortage of listings and exceptionally strong sales activity.”