Vacancy levels remain below 1% for purpose-built rentals in the Greater Victoria region according to the most recent CMHC 2017 fall report.
Victoria, July 18th, 2018 Victoria, BC - Two significant share sale transaction completed by national REIT’s in the Victoria market indicating strong demand for investment opportunities.
According to the most recent CMHC data, vacancy rates in Greater Victoria remain at 0.7%. This low vacancy rate can be attributed to sustained low unemployment levels estimated by statistics Canada at 4.3% for 2018. Additionally, growing influx of students, both national and international, attending Victoria’s major post-secondary education institutions combined with, stricter mortgage qualifications for first-time home buyers and the rising costs of housing for first time buyers has induced more renters to continue to stay in place.
Market transactions for the first half of this year are estimated to have significantly exceeded the $108 million recorded for the same period in 2017. However, exact figures for total sales volume are not available based on the fact that details concerning the purchase by a national apartment REIT of 356 units in two major properties are unavailable based on confidentiality agreements attached to these transactions
Colliers International anticipates demand for rental product will remain robust due to rental demand sustained by continued strong employment and economic fundamentals leading to more net in migration to the region. According to the most recent Yellowsheet Construction Data and Analytics stats, approximately 8,390 units are either in the development application/permit application, pre-construction and under construction phases. However, this supply should be absorbed by the market assuming current tenant demand fundamentals continue going forward.