Commercial real estate sales across Greater Vancouver were down 19.5 per cent overall last quarter, according to the lastest statistics report from Real Estate Board of Greater Vancouver.
Slowing demand has impacting all commercial sectors, with land sales decreasing the most. Land sales declined 34.8 per cent this quarter, dropping from 305 sales in the second quarter of 2018 to 199 in the third. Office and retail sales decreased the least, down just 4.2 per cent quarter-over-quarter.
“We’re seeing less demand across our commercial market compared to recent years and supply is beginning to ramp up with a number of projects expected to complete in our region over the next year,” said Phil Moore, REBGV president.
Total dollar volume of sales, however, barely decreased, down 0.9 per cent overall year-over-year. Office, retail and multi-family dollar volumes increased this quarter, up 45.5 per cent and 3.9 per cent, respectively.
I line with slowing sales activity, the B.C. Real Estate Association’s Commercial Leading Indicator (CLI) measuring economic activity in the province is down a modest 1.3 per cent year-over-year. Quarter-over-quarter, the CLI has measuring flattening growth, which points to a “continued positive, if somewhat slower, growth environment for commercial real estate activity.”
New Westminster industrial sales showed the biggest increase in dollar value of all sectors and regions in Greater Vancouver, increasing 1366 per cent over last quarter. Coquitlam multi-family sales posted the largest decrease in quarter-over-quarter dollar volume, decreasing 87.9 per cent.