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Vancouver’s Multi-Family Rental Sector is in Overdrive
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(Posted on Mar 20, 2016 at 06:00AM by Michelle Bogle)
Vancouver’s commercial real estate market, especially the multi-family category, is sizzling right now with unprecedented sales numbers across the Lower Mainland. Industry professionals and investors are experiencing a surge in prices to unseen levels.
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According to the Goodman Report’s 2015 Year-End Review, Vancouver’s multi-family rental building sales saw a huge lift in 2015. In fact, sales rose by 47% to 181 transactions and the dollar volume increased by 99% to $1.55 billion last year compared to 2014.
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There are a number of factors that contributed to this major uptick, including Vancouver’s worldwide appeal and climbing immigration levels. The weakened Canadian dollar and historically low interest rates have also played a key role in the hot market. With a low inventory of affordable accommodations, difficulties in developing new rental stock and undersupplied rental suites, bidding wars have become the new normal.
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The outlook for 2016 looks to be much of the same – if not more. Industry professionals are anticipating dollar volumes to hover around the $2 billion range by the end of the year. The demand is very high with no let-up in sight.
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To learn more about Vancouver’s booming multi-family market, please contact our office to speak with one of our commercial real estate advisors.
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