ROCK Advisors Brokerage Inc. CEO Derek Lobo will moderate a panel in a few weeks in Toronto on the purpose-built, high-rise rental apartment industry.

“Confidence is growing in the industry after the past five years when the performance of purpose-built rental apartment stock remained stable and consistent, especially when compared with other investment sectors,” Lobo said.

His panel, set for the Metro Toronto Convention Centre on Thursday Dec. 1 at 9:30 a.m., will ask “Has the apartment market out-performed all other real estate classes? What is it likely to do next year?”

At least for the first question, Lobo was already providing a clue to his answer.

“With falling cap rates and low interest rates, it is now cheaper to build new apartments than it is to buy and repurpose old ones,” he said.

Lobo will be joined by Killam Properties CEO and President Philip Fraser, Boardwalk REIT President Roberto Geremia, TransGlobe Apartment REIT CEO Kelly Hanczyk, and Alfred Henry, CEO of Homestead Land Holdings Ltd.

Earlier this month, the Canada Mortgage and Housing Corporation noted Toronto will increasingly be home to more young adult renters between the ages of 25 to 34, as they choose to put off the purchase of their first home.

Since rental apartments account for just 10% of all new apartments in the GTA, the CMHC predicts a growing number of condo conversions. By 2012, the vacancy rate is expected to remain a stable 2%, but average two-bedroom rents will increase from $1,165 from the current $1,134.