Edmonton's multi-family housing market should enjoy a banner year in 2012, according to real estate giant Avison Young.
"Expected downward pressure on vacancy rates is forecast to push up rental rates across the region as workers from other parts of the country continue to migrate to Alberta," Avison Young said in its 2012 forecast for the Alberta capital. "Well-positioned product will continue to draw strong interest from both local and national investors."
The average price per door increased about $860 in 2011 over 2010. The per-apartment price is now around $111,300 per door, which is still about $8,400 behind the peak in 2007.
The number of units per transaction jumped from 29.4 in 2009 to 32 in 2011, signalling a greater interest from larger institutional investors in Edmonton's offerings.
The overall greater Edmonton multi-family vacancy rate fell 0.9 per cent in 2011 to 3.3 per cent, but was up in some markets, notably Strathcona County, which includes Sherwood Park. New product helped boost the vacancy rate in that district by 3.7 per cent to 4.7 per cent.
The average cost per acre for multi-family land in Edmonton hit $832,088 in 2011, with the corresponding figure in the suburbs hitting $559,856, according to Avison Young.
The increase in multi-family land sales in the final quarter of 2011 means that a market in need of new purpose-built rental units could soon welcome additional supply.
"With vacancy expected to decrease and new rental supply coming on line, the ingredients for a more active market where owners can obtain full value for their properties are coming into place," said Paul Chaput, principal for Avison Young in Edmonton.
from Western Investor March 2012
