Victoria's multi-family market will continue to be characterized by low capitalization rates and high per-suite prices, according to a report from Colliers International.
The typical cap rate for recent apartment building sales are in the 4.6 per cent range, and walk-up buildings are selling for around $130,000 per suite, according to Colliers, Victoria.
Average rents in Victoria are $1,024 for a two bedroom and $806 for one bedroom, up 2 per cent from a year ago. The current vacancy rate is 1.5 per cent, the sixth lowest in Canada. Colliers expects vacancy rates to fall to 1 per cent this year in the capital city, and is predicting that cap rates will remain among the lowest in Canada.
from Western Investor, May 2011
