The property market in Saint John is increasing significantly in growth due to the proposed building of the ‘Energy East’ pipeline that would ship oil into Saint John, New Brunswick. This is great news for Canadian real estate investors looking to invest in Saint John, home of Canada’s largest oil refinery, Irving Oil.
The pipeline, built by TransCanada Corp, would run from West to East, from Alberta to Saskatchewan and then to Saint John for refinery. It would ship primarily light oil, with some crude oil as well, says Huffington Post. “Oil from Western Canada is essentially landlocked, making it difficult to move to international markets, which drives down its price by as much as $40 a barrel compared to the world standard.”
This makes it a perfect candidate for cooperative utilization by the USA and Canada as a means of achieving North American energy independence. With the shipment and refining of Canada’s own oil, less oil would be needed from foreign sources, though there is a potential for a market to ship from Canada to energy consumers in Asia.
So how exactly will the Energy East pipeline create an ideal property market in Saint John, New Brunswick?
Lower Cost of Living
Other areas of Canada have a much higher cost of living with higher real estate prices. Because of this, families will be selling their homes as they move to Saint John for employment with Irving Oil and will be taking advantage of the current low real estate prices.
Lower Real Estate Prices…For Now
However, as the population grows, competition for extremely desirable waterfront properties will increase, and real estate investors will soon find the prices to purchase and then lease these properties much higher. This is why it’s imperative to act during the initial growth stage Saint John is experiencing, as the conditions for investing in Saint John are currently highly favorable for investors.
According to CTV News, New Brunswick mayor Mel Norton stated, “Saint John is a place where we absolutely, 100 per cent want to see the pipeline end … We want to see it filled with Alberta oil and refined in Canada’s largest oil refinery and shipped out to world markets from our deep-water port.”
The Timing is Right
- The pipeline would deliver 830,000 to as much as 850,000 barrels of oil from oil sands each day.
- The pipeline will bring in thousands of workers and their families who will need housing. Saint John already currently has unemployment rates of around 5.9%
- Growth is estimated at 18.9%, offering investors an incredibly high return due to the current low prices. This means more passive income and financial freedom for real estate investors who get established soon and take advantage of increasing property values over time.
- Though the average price for a home is around $150,000 right now, prices are rising each month, so now is the best time to act.
- Saint John was recently labeled the ‘number one market to invest in‘ by the Canadian Real Estate Association, or CREA. According to CREA, “national home sales rose 0.6% from March to April.”
- Families find Saint John a safe, beautiful and affordable place to live, and retirees desire it as well
- As the population increases, your properties will increase in value and pricing.
With Irving Oil expected to bring jobs, energy dependence, and growth in the property market, this isn’t a surprise.
“It’s important that producers understand the advantages of a pipeline that would carry western crude oil to eastern refineries,” says Norton. Investors, as well as producers, can enjoy these advantages.