- What Colliers says 2024 was challenging for the Victoria area
- Why Financing issues have led to a slowdown in new product
- What next Economic headwinds mean 2025 could be rough as well
It was a challenging 2024 for the Greater Victoria multifamily market, according to a report released by Colliers on Tuesday.
The brokerage said high interest rates and unfavourable market conditions smothered investor activity, leading to a 45% decrease in sales for the region last year, compared with sales in 2023.
The Greater Victoria multifamily market hit just $235m in transactions last year, compared with $427m the previous year.
Against this backdrop, strong investor demand has been met with a difficult financing environment and lack of new builds.
Of the transactions taking place in 2024, just $59m worth were new builds, which was a single deal, with the other $176m being established properties.
Only one transaction broke the $50m threshold for the year, the purchase of 920 Reunion Avenue by Ovis Group in September.
The second largest was the $23.5m deal for 4026 Quadra Street by Starlight Investments in October.
The average price of established inventory was about $284,000/unit, while new inventory reached $492,000/unit.
Property taxes and rent-increase controls have played a role by making it less appetizing for investors to enter the rental market, Colliers said.
Colliers said the lull in activity in the Victoria market will likely continue through 2025, against economic uncertainty created by the threat of tariffs from the United States.
