Leading into the current COVID-19 situation, the mid-island multifamily market was experiencing high investor demand and low supply of available inventory resulting in a reduced sales volume in 2019 compared to 2018. To highlight the increased demand, two sales of investment product in the Nanaimo market transacted in the sub 4.0% capitalization rate range. This is unprecedented in the Mid-Island region. Looking forward, Colliers forecasts:
- The total vacancy to increase due in large part to the approximately 713 rental units scheduled to be delivered to the Nanaimo market in 2020.
- The COVID-19 pandemic will likely create some uncertainty in the market and could potentially add downward pressure on rental rates.
- On a national basis, Multi-family rental is proving to be one of the best performing asset classes for rent collection and well located assets within the Mid Island region will continue to be in high demand.