Coquitlam multifamily assets have shown a steady increase in value over the past 5 years as cap rates for apartment buildings have dropped across the region. This market is predominantly characterized by low-rise buildings. The average sales value over the past five years in this market is about $125,000, a value range that is consistent with areas such as East Vancouver and New Westminster.

Values for apartment buildings in East Vancouver have grown steadily over the past 10 years and have generally tracked rents in its upward trajectory. The supply of rental units in this market is limited to new condos in areas such as Main and Fraser Street. Transaction activity has been fairly limited in this market with few sellers; however, a number of buildings have been acquired by investors looking to take advantage of rising rents, particularly in trendy areas near Main Street and Commercial Drive.

This market is predominantly characterized by low-rise buildings and complexes over 40-years of age. The average sales value over the past five years in this market is about $145,000.

East Vancouver has traditionally been considered an affordable option to renters relative to the Westside or West End; this is evident in rents which are on average approx. 15% lower. According to CMHC, the average one-bedroom rents for $915 in Mount Pleasant/Renfrew Heights, and $845 in the East Hastings Area.

Much of the transaction activity taking place in East Vancouver over the past few years have been of older apartment product that has been renovated and reintroduced to the market at higher rental rates. Average cap rates have hovered in the 4.0% to 5.0% range, with lower cap rates for older buildings with upside potential.

According to CMHC, vacancy rates for apartments are generally around 1.0%; which will continue to be tight amid little new rental supply. Investors will continue to look to East Vancouver for buildings with upside as well as those properties which are well-positioned for future growth and rent increases.

Below is an update to some data we posted previously outlining activity and pricing for Downtown Vancouver condo resales. Sales volume was down 30% YoY in August 2012. For product less than 2 years old, the market has come off in terms of both pricing and sales activity. The majority of newer condo product downtown continues to trade in the bandwidth between $600 and $800 per sq ft.

Source: REBGV stats.

Below are average cap rates derived from aggregated sales data over 6 months ending September 2012.

North Shore Outlook – A new kind of grocery store to take over Safeway lot in West Van.

From the outside, it doesn’t seem like much is happening to the boarded-up former Safeway building on Marine Drive in Ambleside.

But crews are quickly working on extensive renovations to make way for Fresh St. Market, a grocery store that will offer 70 per cent veggies, fruit and meat and 30 per cent grocery items.

Read more: http://www.northshoreoutlook.com/news/170352856.html