TGIF: What's Next for Real Estate in the YVR 'Burbs?
Timing is everything in real estate - this is not just a cute expression - it is a reality, and closely related to supply and demand.
Metro Vancouver’s multi-family sector is now the strongest in Canada - with an incredible demand for rental buildings. Local and foreign investors are competing for the same product as a clear indication that commercial real estate is indeed the new boom. It is also a clear indication that our cities have not built any purpose built rental housing for decades.
Vancouver also has the lowest office vacancy rate in the country and speculative office towers are pre-selling at unprecedented prices - try $2,000 per sq.ft for a 30 storey building which will complete 3 years from now! Vancouver ranks just behind Toronto for low industrial vacancy rate and experienced the highest increase in lease rates in 30 years.
What does all this mean to us in the “burbs”? As Vancouver’s economy continues to heat up and next year’s GDP growth is forecast to lead the nation, top companies will be attracted to relocate here. And where will they buy condos and homes? In the suburbs. This may well offset the correction which could be caused by the increasing interest rates and stiffer qualification requirements.
Even without a crystal ball, the one thing we do know is that, as long as you keep it long enough, your real estate will always be a great investment. And....you can rent it out!
Keeping you covered is as always our mission - we just have a bigger unmbrella now! Happy to talk real estate any time.
Michelle, Sheila, Scott, Ray and Shane
-Generations Real Estate Partners