Inside : The Okanagan Multi Family Market
After those hoping to become landlords are seeing a sudden increase in apartment buildings for sale and a near - five-year hiatus, the Okanagan & vancouver real estate residential market has come back to life this spring.
“I reckon lots of owners abruptly decided to list,” said Jeff Hudson, a commercial realtor with Colliers International Kelowna
(250-763-2300). The landlords could be taking a clue from the total housing market, which has found sales in Okanagan Mainline (Peachland to Revelstoke) increase 8.2% in May compared to May 2012 on 733 sales. New listings for the month were down 13.4% from a year earlier, with 1,836 residential vancouver real estate properties on MLS.
The typical detached price is $375,000, almost unchanged from a year ago. Hudson said at least six apartment buildings are listed for sale in the Central area, including one in 2 each and Kelowna in Penticton and Vernon.
Expect to spend around $100,000 per door in Kelowna, and in the $90,000 per door range in smaller centres.
There is red hot demand for small apartment buildings, when he listed a 21 - suiter in Kelowna this week on MLS as Hudson found out. It is generally hard to locate apartment buildings for sale in Kelowna, because most are in closely-held portfolios by a handful of owners, he explained.
Kelowna has a rental vacancy rate of from 3% to 4% and numerous new employment - creating jobs are anticipated this year to boost rental demand. These include an expansion of the Kelowna General Hospital along with a brand new office tower downtown for Interior Health, and recent expansion of the UBC Okanagan campus. (As in the majority of B.C,’s smaller centers, it is public pay cheques that drive the economy and job growth in Kelowna.)
Major Point: Buying condos as leases could possibly be good strategy. Costs remain well below the peak period (2008) when most were built., while most of the overhang of new condos has finally been taken up. A good example is the luxury Invue condominium tower, where - based on existing listings - you can buy one bedroom or two bedroom resale units for $300-$305 per square foot, or about 20% below the values of five years back. A scan of the Kelowna MLS market this week found 64 condo apartments, largely 2 - bedroom units, priced between 000, 000 and $ 200, $ 100 and a handful priced under $ 100, 000. 2-bedroom apartments rent in the $1,350 range.