Victoria, once the Canadian city with the lowest rental vacancy rate, has seen a sharp increase in vacancies and a flatlining of rent increases over the past year, according to Colliers International.
Noting the overall vacancy rate in the Capital Region has risen to 2.7 per cent, up from 2.1 per cent a year ago, Colliers adds that some markets are seeing much higher vacancies. These include Esquimalt, where vacancies are now 5.5 per cent and Fairfield and Oak Bay, now both at 2.4 per cent, up from 1.5 per cent and 1.9 per cent a year ago, respectively.
Colliers notes the average price for a rental building in Victoria is now around $129,000 per suite, with real estate investment trusts among the most active buyers. Just one Toronto-based REIT was responsible for nearly a third of the 17 apartment building sales in the region last year.
Meanwhile, Victoria rent increases have averaged less than 2 per cent in the past year, despite an allowance of a 3.8 per cent increase under B.C.'s rent controls.
