-- Across Canada, vacancy and capitalization rates remain at historical lows while the average price per door and average rental rates continue to trend upward. Nationally, the average price per door increased by just under 18 percent and average rents increased by just under four percent. --
Toronto, August 13, 2014 – Across Canada, the multi-family market continues to exhibit strength and growth. Colliers International‘s Valuation and Advisory Services Group released a new report that highlights trends in this asset class that a number of major Canadian markets are currently experiencing.
Of the markets surveyed, the Greater Toronto Area (GTA) continues to be the largest market for multi-family transactions across the country, albeit by a much smaller margin compared with the same time last year. Similarly, Ottawa and Victoria both experienced increases in transaction value, with Victoria seeing an increase of almost 90 percent. Winnipeg is the least active market, with a mid-year transaction value of only $14,850,000.
“The multi-family asset class is the most sought after in Canada, and demand is expected to continue” says Oliver Tighe, director with Colliers International in Ottawa and an expert in the Canadian multi-family market. Mr. Tighe also notes, “There continues to be significant competition for any good-quality, large-scale assets made available for sale; as such, many owners are electing to reinvest and expand their existing holdings where possible.”
The report also spotlights the Vancouver multi-family market, a market world-renowned for its exceptionally high residential real estate costs. Vancouver, which attracts both local and international investors, has seen a decade-long rise in multi-family values. One multi-family property in particular saw an increase of more than 330 percent in value and witnessed a 380 basis point shift in capitalization rate over a 15-year period. This trend is expected to continue as the supply of capital remains high and the supply of assets remains low.
> Download the full report