“Bigger really shows that there’s extreme confidence in the market,” said Paul Richter, national research manager for RealNet Canada, the firm collecting the data.
The greater Vancouver area enjoyed a record number of sales over $10 million in the first quarter of this year, specifically 24 property sales.
That number exceeds a 2009 record by three transactions, and comes at a time when residential sales is slowing on the Lower Mainland.
Still, “volume and velocity, however, were down from the previous quarter by 16 per cent and six per cent respectively,” according the report.
The latest quarter represents the fifth straight with sales in excess of $1 billion.
“That’s a really good indication that the market is at peak levels,” said Richter. “It’s equal to the peak levels in ‘08.”
The high-end spending spree is being fuelled by low interest rates and demand for office space, among other things.
That same thinking extends beyond Vancouver.
The latest Canadian Real Estate Sentiment Survey suggests that overall, Canada's commercial real estate leaders remain positive about the health of the sector, although see growth tapering off as the year progresses.
"What's interesting about the survey results is that they show how confident Canada's commercial real estate leaders remain about market conditions in the face of continued global economic uncertainty," said Paul Morse, CEO, REALpac, which produces the survey with FPL Advisory Group. "Even though some executives expect a slowing or pause in activity, their outlook remains positive, and improving equity availability is another vote of confidence for future growth."
Billed as Canada's most comprehensive measure of senior executive confidence in the domestic commercial sector, the survey’s second quarter index reading came in at 63 out of a possible score of 100, slightly up from 61 last quarter, but down from 71 a year ago.
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