VANCOUVER – A new CBRE report cites a downward inflationary trend along with declining interest rates as factors pushing multifamily investment activity upwards in Vancouver and Victoria.
The 2024 Mid-Year Apartment Report was released from CBRE’s National Apartment Group-BC team, which specializes in the sale of rental apartment buildings and development sites throughout British Columbia.
“Mid-year sales activity and pricing reflects both the demand for and confidence in the B.C. multifamily asset class from both local private investors and national institutional investors. With further rate cuts expected over the coming quarters, confidence is returning to the investment market which is starting to show signs of recovery,” CBRE Vancouver vice-president Greg Ambrose said in a release.
Sales volume has been trending down since peaking in 2021 based on the sales activity in the first half of 2024. With 61 transactions totalling 2,386 units and $830 million in sales volume, it is on track to exceed last year’s sales and possibly be similar to 2022’s numbers, the release said.
Multifamily cap rates throughout B.C. edged slightly higher in the second quarter of 2024, with marginal increases recorded across each regional average asset class except for retail cap rates holding constant.
Apartment rents in Canada reached record highs in the first half of 2024, it added, with average asking rents for all residential property types in Canada hitting an all-time high of $2,202 in May, surpassing $2,200 level for the first time.
All provinces recorded annual increases in apartment rents for purpose-built and condo rentals with B.C. claiming the highest average asking rent of all the provinces at $2,526 in May 2024, and in Vancouver total average asking rents are the highest in the country at $3,008 with bachelors at $2,317, one-bedrooms at $2,684 and two-bedrooms at $3,729.
The full report is available here.
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