We always look to HQ Commercial’s Mark Goodman for perspective on multifamily rental market. This single wood frame building (image) just sold in Kitsilano for $345k/unit (3.2% cap rate), when the average price forwe went to Mark for some broader context. In the image is Mark with his father David. (HQ Commercial connects investors, tenants and landlords with top commercial RE brokers in the marketplace). That deal is on the “upper end of the spectrum across Greater Vancouver as far as values as concerned,” Mark says. The average price per unit in Vancouver last year was $262k.
“Buyers are paying significant premiums for well-located rental stock,” he says. “There is a lot of money chasing very few deals.” (Sounds like a high school prom.) Vancouver is known for having some of the highest condo and single-family housing prices with the lowest cap rates for rental apartment buildings in Canada. Canada’s overall stability – political and economic – along with Vancouver’s low vacancy rates, strong immigration and limited supply opportunities have made the multi-family rental sector one of the leading “go-to” RE asset classes for investors, Mark says.
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