There has been a significant drop in the number of rental apartment buildings sold in Metro Vancouver in the first six months of 2008 compared with the same period last year, according to an August newsletter published by real-estate brokers David and Mark Goodman.
The father-and-son duo, who work for Macdonald Commercial, note that there were 51 buildings sold in Greater Vancouver from January to June. That’s down from the 77 buildings sold during the same months of 2007. The dollar volume dropped from $273 million to $167.8 million over the same period.
The average price per suite increased 19 percent in the South Granville area, 15 percent in the West End, 14 percent in Kitsilano and on Vancouver’s East Side, and 12 percent in Marpole. The per-suite price fell 11 percent in Kerrisdale, where there was only one sale in the first six months of this year, compared with two sales in those months last year.
The Goodmans write that higher oil prices (which have levelled off since publication of the newsletter) will have an inflationary impact on products and services people use every day. They state that there is “no doubt that growing inflation will increase rents”, but that this will be offset for landlords by escalating taxes and utility costs.
However, they also point out that with inflation comes the likelihood of higher interest rates. “Accordingly, now may be the appropriate time to consider longer terms for your mortgage, if you plan to hold for a long time,” the Goodmans advise apartment owners.
