Most parts of the residential real estate market are stalled as buyers sit on the sidelines and wait out the recent economic uncertainty. Read More
Amid tumbling stock markets and panic about international trade wars and tariffs, one broker is seeing a mini-burst of sales activity in Metro Vancouver multi-family rental buildings.
Article content
Most parts of the residential real estate market are stalled as buyers sit on the sidelines and wait out the recent economic uncertainty.
Article content
Article content
But amid tumbling stock markets and panic about international trade wars and tariffs, one broker is seeing a mini-burst of sales activity in Metro Vancouver multi-family rental buildings.
Article content
“In the last three weeks, we have listed five properties and sold five properties. We have put ‘under contract’ four properties and reduced the price on three additional properties,” said Mark Goodman of the Personal Real Estate Corp.
Article content
Story continues below
Article content
Most are older buildings in Marpole, east Vancouver and Burnaby. One that is under contract for sale is a 48-suite apartment building on Granville Street in Marpole that sits on a 76-metre-long corner lot, and is asking $12.7 million.
Article content
Westcoast Homes
Article content
Goodman describes the current market as being more liquid than it has been over the last couple of years. The backdrop includes prices that have come down between 25 and 30 per cent, and interest rates that have stabilized. There are also more listings as an older generation of owners wants to get out of the market because rents are dropping while repair and maintenance costs are rising.
Article content
Things shifted more forcefully in the past few weeks and, in an online post this week, Goodman noted: “We’re screamin’ busy as investors flock to safer, more predictable returns.”
Article content
Stock markets have plummeted this week in response to U.S. President Donald Trump’s steep tariff hikes for countries around the world and the possibility of the global economy going into recession.
Article content
Story continues below
Article content
“Historically, we’ve seen drops, but, for people who know the stock market better than me, this is a big deal,” said Goodman. “We’re seeing a massive recalibration now around the world.”
Article content
Stories You May Like
-
Push for below-market rental units in B.C. highrises is stupid, says UBC prof
-
Looming capital gains tax changes spark ‘unprecedented’ rush in B.C. property sales
-
Advertisement embed-more-topic
Story continues below
Article content
He thinks that as investors in the stock market get skittish, they look to buying assets that don’t deliver as aggressive returns, but are more predictable.
Article content
He said most of the sales in the current mini-flurry of activity are by local investors who have real estate portfolios in place and have managed multi-family buildings.
Article content
“This is their main business as opposed to professionals who are dentists, doctors or accountants who are buying this as a passive (investment),” said Goodman.
Article content
University of B.C. real estate professor Tsur Sommerville said rental buildings aren’t traditionally thought of as a ‘flight to safety’ investment move.
Article content
“But I am not sure what is right now,” he said.
Article content
He noted there are many more rental units that will be coming onto the market and that rental rates are already falling.