Daily Market Update

by Jordan Maxwell17 Mar 2015
Chinese investment wave beyond Vancouver 
Vancouver is not alone in being rocked by real estate buyers from China. According to news1130.com, the explosive growth of the Chinese economy is fueling an international buying binge. Chinese purchases of foreign homes totalled $39 billion US last year, according to Real Capital Analytics, from less than one-tenth of a billion just six years earlier. Such investment is pushing up prices in Australia, the US, the UK and Hong Kong, according to Bloomberg reporter Bonnie Cao in New York, and they’re not necessarily billionaires. “A lot of them are actually professionals such as lawyers, doctors, engineers – not as in the old days.” 

Vancouver rental market in high demand
Vancouver-area apartment buildings are in high demand, in a rental market with the lowest vacancy rate and highest rents in Canada. Just as detached houses and condos in the city are fetching the highest prices nationally, so too the “price per door” for multi-family buildings is highest here, in the neighbourhood of $230,000 a unit. That compares to $171,000 a unit in Calgary and $160,000 in Toronto, according to a new report from Colliers International. According to an article in the Vancouver Sun, The city’s vacancy rate is a rock bottom one per cent, making Vancouver by far the tightest rental market in Canada, and tighter than a year earlier when it was 1.7 per cent. Montreal and Halifax have vacancy rates nearing four per cent wile Toronto has a vacancy rate of 1.6 per cent. Read more here.

Brick and beam real estate demand on the rise 
Rents for brick-and-beam real estate in the city’s east end, where Wattpad is based, rose 26 per cent to C$20.62 a square foot from 2007 and were up 49 per cent in the west end, according to data compiled by CBRE Group Inc. The cost to lease space in the best quality towers in the financial core rose 6.4 per cent to $32.21 over the same period, the brokerage said. Availability of historic office space is also at a record low in some neighbourhoods, according to CBRE. Vacancy in the downtown west end dropped to 2.4 per cent in December from 6.5 per cent in 2007. According to the Financial Post, that compares with a vacancy rate of 4.9 per cent in December for offices in the financial core, which is approaching a decade high amid a wave of new supply. “The type of companies located in those markets are more trendy and don’t necessarily want to be in a sterile office building,” Masha Dudelzak, Toronto-area research manager for the brokerage, said by phone. “They have young employees so that’s a big draw.” Read more here.

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