Multifamily Dollar Volume Slips
Multifamily investment here has peaked, according to an Avison Young study on the first half of 2013. While prime assets are still attracting premium pricing, the days of head-to-head competing offers are in the past. (It was fun while it lasted, hope you kept some pictures to remember it.) AY principal Rob Greer tells us the decline in dollar volume compared to 2012 comes down to a lack of available quality product of scale and a reduction of activity by REITs, mostly. "Despite the numbers, we still expect the market to finish strong in terms of both total sales and dollar volume," he says. So a ray of sunshine there, at least.
Rob expanded a little on the trepidation (AY tracks multifamily investments greater than $5M). Of the 17 multifamily deals in the first half of 2013 ($154M in total value), just four exceeded $10M (only one exceeded $20M; MC2 on Cambie, from Intracorp to Mayfair Properties, for just over $26M). "We are also seeing extended negotiations, which are delaying transactions and are working in the buyer's favour," he says. (In the photo is Harbourview Terrace in North Vancouver, which sold for $8.7M, one of the few sales outside Vancouver in 2013.)