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2013: The year of the multi-family property

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Guest | 24 Jan 2013, 03:01 PM Agree 0

"The strength of the sector will be fuelled by strong demand drivers and constrained supply characteristics," reads the study by Morguard Corp., a publicly traded property management firm. "Negligible new construction will also act as a booster of generally tight conditions in the rental market."
The forecast anticipates occupancy rates hovering close to the 98.0% mark nationally, with rents will continuing to rise,although capped to some degree rental control legislation.
"The multi-family residential rental sector will see largely stable and healthy performances in the coming year, as was the case through all of 2012," Morguard continues. "Steady growth in property values over the past few years may ease in 2013, however values will continue to range at the peak."
That analysis jives with that of other market watchers, who point to inmigration and scarcity of product for the bullishness in the marketplace.
Uncertainty around alternative investments -- stocks, bonds, etc -- is also driving demand for multi, although new-build construction is still a daunting propostion for many smaller investors fearful of losting a cap rate advantage.
Other key projections from Morguard include:

Property values will continue to range at the cycle peak supported by robust investment demand, low interest rates, and historically low long-term bond yields
Income performance strength will remain a fixture over the near term as rental markets in all sectors post strong occupancy characteristics, positive demand trends, and modest increases in rental rates
Robust purchasing activity in the investment sector will continue to feature a significant REIT sector component, however pension funds and private capital will remain active
Conservative construction volume in the office and industrial sectors over 2013 will ensure rental market conditions improve however, as 2013 ends risk levels will rise with the increase in office development in Vancouver, Toronto and Calgary
  • Brampton-Homes | 04 Feb 2013, 07:41 AM Agree 0
    I couldn't agree more. As a professional realtor i've never seen such a surge in the multi-family dwelling market in all my 25 years in the business.
  • Patra01 | 09 Feb 2013, 08:02 AM Agree 0
    Yes, It might be the upcoming property investment strategy, but I would not like this type of property investment strategy any more in the initial stage. However it might be vary from country to country and from places to place. The only thing is that we need to update our property investment strategy as pert the current real estate market trends which could be beneficial for us.

    Thanks and keep it up!
  • preeti22 | 23 Aug 2013, 11:33 AM Agree 0
    An [url=]investment property [/url] can be a smart way of increasing your income, if decisions have been made wisely ....
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