More Jobs, Higher Retail Sales, and Great Commercial Real Estate Opportunities in Vancouver, BC
Real Estate News for Vancouver
Victoria, B.C. Named One of the Best Regions for Multi-Family Investors
Tags:
(Posted on Dec 20, 2016 at 04:13PM by Michelle Bogle)
The multi-family sector in British Columbia is booming and property investors are revelling as values continue to rise, vacancy rates are near record low levels and rental rates are the highest across Canada.Â
Â
But, even though the multi-family sector is strong across the province, there are certain regional markets that are expected to do better in 2017, especially as growth in the technology field continues to drive rental demand.Â
Â
In today’s post, we take a closer look at Victoria, which is named one of the top five regions for investing in the multi-family sector in 2017.
Â
Victoria
Forecast: rental vacancy rate of 0.8% through 2017
Average two-bedroom rental in 2017: $1,200
Â
British Columbia’s capital represents one of the best multi-family markets in the province, if not in all of Canada. The rental vacancy rate is resting at a super low 0.7% and is expected to remain below 1% for the next two years, according to a forecast from Canada Mortgage and Housing Corporation (CMHC).
Â
As for the rental demand, it is being driven by three tenant pools: students, employees in the high-tech sector and seniors. Net migration for people aged 16 to 25 has added 18,000 residents to the population since 2006 – the largest single cohort of migrants to the region. Many of these are post-secondary students or employees in the city’s burgeoning tech sector, which now employs 23,000 people. Layered on this is the growing demand from seniors, who are choosing Victoria as their retirement destination.Â
Â
The downside of investing in this region is the high cost of rental apartment buildings, currently in the $185,000-per-door range and up. Also, capitalization rates for multi-family properties average 4%, which is the lowest across B.C.
Â
Having said that, investing in Victoria’s multi-family sector is still a solid choice. For more information on the region, please contact Marcus & Millichap’s Vancouver office to speak with one of our highly skilled commercial real estate advisors.
Powered by Webstager