Sales and prices of multi-family rental apartment buildings in Edmonton are holding steady despite the headwinds of the pandemic, according to The Network.
In the first six months of this year, 27 rental apartment buildings sold in Alberta’s capital city, compared to 29 in the same period last year.
The average price “per door” reached $152,725, up from $136,264 during the first six months of 2019, the Network data shows.
This year’s sales included four high-rise rental apartments and 22 low-rise buildings. The average capitalization rate was 5.3 per cent, down slightly from the 5.4 per cent average a year earlier.
The total dollar volume in the first half more than doubled to $463 million, compared to $221 million in the first half of 2019.
The Network multi-family data, compiled exclusively for Western Investor, also shows that Calgary did not perform as well as its northern neighbour.
Calgary’s rental apartment sales were down to 14 transactions in the first half, compared to 24 in the same period in 2019, but the average price per suite increased modestly to $178,016, compared to $176,950 in 2019.
The total dollar volume of Calgary rental apartments this year is down sharply to $70.2 million, compared to $154.3 million a year earlier. Capitalization rates in Calgary remain in the 4.6 per cent range.