MARCH 2020BC MULTIFAMILY NEWSLETTER

BC MULTIFAMILYMARKET OVERVIEWThe first two months of 2020 have been an indication that the multifamily market in BC is returning to a traditional cycle with fundamental investment metrics predicted to be the dominant theme this year. A look back on 2019 showed the market transition from an abnormally hot run in the few years prior, and 2020 is shaping up to be much more positive with investors getting back to basics.

Two major risk factors that we see in the multifamily market continue to show they are hardly risks at all. As indicated in the most recent CMHC rental market report, vacancy rates across Metro Vancouver (and BC as a whole) continue to be at rock-bottom lows while mortgage interest rates have taken yet another dip lower. The Bank of Canada’s recent rate cut is presenting investors with unprecedented CMHC insured 10 year mortgage options costing less than 2%! With

rates this low, coupled with perpetually low vacancy rates, we can only expect demand and investment activity in the sector to pick up as we enter into a favourable spring market.

Although January and February are historically slower months for apartment building transactions, we are predicting activity to pick up substantially as there is currently a higher than average number of active listings already on the market, and not just within Metro Vancouver, but across the entire province. At JLL Multifamily BC we take pride in our expertise and ability to advise clients across all regions of British Columbia, from Vancouver Island, through the Lower Mainland, and all reaches of the Interior and North. Contact us today to discuss what opportunities match with your investment goals.

Market # of Sales Sales Volume # of

Units

2020

Metro Vancouver 13 $137,800,000 488

Greater Victoria 3 $57,300,000 23

Secondary Markets 8 $20,420,000 111

British Columbia Total 24 $215,520,000 622

2019

Metro Vancouver 10 $117,293,125 227

Greater Victoria 1 $1,900,000 11

Secondary Markets 9 $109,689,000 591

British Columbia Total 20 $228,882,125 829

2018

Metro Vancouver 25 $234,271,328 1239

Greater Victoria 2 $4,150,000 344

Secondary Markets 16 $56,630,000 848

British Columbia Total 43 $295,051,328 2431

Year-Over-Year Market Breakdown BC Transactions from January and February

CMHC Highlights

Low Vacancy & Low Interest Rates

Vacancy Rate

British Columbia 1.50%

Metro Vancouver 1.10%

Greater Victoria 1.00%

Mortgage Rates

10-Year Insured 1.75%

5-Year Insured 1.60%

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Although information contained herein has been obtained from sources deemed reli-able, neither JLL nor any of its clients makes any guarantees or representations, express or implied, as to the completeness or accuracy of such information. Any projections, opinions, assumptions or estimates used are for example only. Neither JLL nor any of its clients accepts any liability for loss resulting from reliance on such information. There may be material differences between projected results and actual results. Copyright © 2020 Jones Lang LaSalle IP, Inc. All rights reserved.