Ottawa, March 10, 2015 – The Colliers International 2014 Multi-Family Real Estate Report shows that Ottawa, though experiencing high rental vacancy throughout 2014, has one of the most stable and sought after multi-family markets in Canada.
This report Colliers International published today is a bi-annual multi-family report that covers eight Canadian cities, including: Calgary, Edmonton, Montréal, Ottawa, Toronto, Vancouver and Victoria.
Despite the total value of all commercial real estate transactions in Ottawa being down by 11 per cent in 2014, the total dollar value of transactions of multi-family assets (properties where more than one family reside), rose 33 per cent during the last year, with Ottawa also seeing 61.54 per cent growth in the number of sales transactions.
“The multi-family asset class in Ottawa remains one of the most sought-after of the major Canadian markets,” said Oliver Tighe, Director of the Valuation and Advisory Services and Multi-Family Practice Group for Colliers International in Ottawa. “This is due to very stable rental and vacancy rates. Owners are attracted to the stability and lower relative price of apartment buildings in Ottawa versus other major markets.”
The Colliers International Multi-Family Report also unveiled an emerging trend in ownership that is moving away from private owners to more national owners across the country, and that the sale price per door, sale price of the multi-family asset divided by the number of livable units, has increased by 5 per cent nationally. Vancouver, Toronto and Calgary continue to have the highest demand, as the volume of sales and average sale price per door throughout 2014 illustrate.
“Vancouver and Toronto have the highest sale price per door, while Montréal and Winnipeg have the lowest,” added Tighe. “Not surprisingly, Vancouver and Toronto also have the highest average rental rates for 2014 with the average one-bedroom rental in Vancouver at $1,198 and Toronto at $1,168.”
Rental vacancy rates in major Canadian markets stayed relatively stable in 2014, with Montréal being the exception, experiencing the largest increase in vacancy of any major Canadian market at 3.9 per cent. Montréal also has the lowest average rental rates among major Canadian markets, and while the city had the largest total number of sales transactions, its total transaction value in 2014 was 42 per cent less than in 2013.
Capitalization rates for multi-family properties continue to hold at the lowest level of all commercial real estate asset classes due to continuing and significant demand for well-located, high-rise multi-family assets.
The Colliers International Multi-Family Report also predicts that 2015 will remain consistent with these current trends, with the exception of Alberta, which is likely to be impacted by the current fluctuations in the oil market.
About Colliers International Colliers International is a global leader in commercial real estate services, with over 15,800 professionals operating out of more than 485 offices in 63 countries. A subsidiary of FirstService Corporation, Colliers International delivers a full range of services to real estate users, owners and investors worldwide, including global corporate solutions, brokerage, property and asset management, hotel investment sales and consulting, valuation, consulting and appraisal services, mortgage banking and insightful research. The latest annual survey by the Lipsey Company ranked Colliers International as the second-most recognized commercial real estate firm in the world.
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For further information, please contact:
David Eisenstadt / Carol King
Chris Markovic, Director
Marketing & Market Intelligence, Colliers International
Phone: 416-643-3764 / (cell) 647-405-6404