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CMHC’s Fall 2014 rental market report shows reduced vacancy rates in the Niagara Region. The lower vacancy rate is a positive indication of property values within the region. In addition the lower vacancy rates, there continues to be a large interest in the Niagara apartment market from outside investors.
Decreasing vacancy rates
The 2014 apartment vacancy rate for the St. Catharines-Niagara CMA was 3.6%. The apartment vacancy rate fell, especially for two and three bedroom apartments from 4.1% in 2013. This decrease in private apartment vacancy coincides with an increased demand for rental housing.
A large transaction within the region
There is a big interest in St. Catharines apartment market from outside investors, as notably indicated by an apartment property portfolio purchase by Skyline Apartment REIT. Skyline Real Estate Holdings Inc. purchased the eight properties in June 2014 for $101,000,011.00.
The eight buildings total 830 units with 1,514.5 bedrooms (bachelor apartment given rating of 0.5 bedrooms). Seven of the apartments are located within St. Catharines, with one in Niagara Falls. The purchasers additionally sold three apartment properties in Peterborough and one in Lindsay.
A sizeable boost of confidence in the market
The demand for apartments will always been apparent in Niagara, from students and young professionals to those who cannot yet make the move to home ownership. The Niagara market has faced its challenges, however the Skyline Apartment REIT transaction shows that the regional market is still receiving a large amount of confidence from large real estate developers, both currently as well as moving forward. Learn more information regarding the Niagara rental market by connecting with a Niagara real estate appraiser.
