Winnipeg real estate investment dollar volume is down 12 per cent year-over-year, trending below the five-year average of $632 million.
A new report by Colliers International places overall sales volume at $426 million in 2017, as compared to $484 million in 2016. Investment is down approximately 125 per cent from Winnipeg’s decade-high of $966 million in 2016.
Investment volume in 2018 is expected to make a comeback in 2018, surpassing last year’s value.
“A number of larger scale listings are currently being marketed with strong buyer interest pursuing them,” the report states. “Investor demand remains robust for high quality existing investment opportunities with stable cash flows and strong tenant rosters.”
Rising interest rates aren’t expected to affect high quality real estate’s capitalization rates. However, the saturation of high quality stock coming onto the market in 2018 is likely to affect the value of lower quality buildings requiring renovations.
Residential and multi-family sales may record the most sales in 2018, as the implementation of Transit-Oriented Development (TOD) zoning as helped facilitate more real estate development not restricted to Winnipeg’s downtown core. Apartment building permits totaled $417 million in 2017 – far ahead of retail ($63M), industrial ($33M) and office ($165M) permits.