After years of trying to cope with the relentless beating from the global oil price crash, the Western Canadian economy and housing market are both expected to perform better in 2016, according to industry observers.
In particular, the 2016 Economic Outlook and Market Fundamentals Research Report from real estate firm Morguard stated that low-cost debt and equity funds would be in healthier supply this year, which could trigger greater sales. Transaction volume by year’s end is projected to be closer to the long-term average of $7.5 billion.
Investments in commercial property in 2016 would also owe a lot to greater purchasing power stemming from improved incomes. In addition, revisions to leasing strategies along with improvements to tenant services are expected to contribute to better income for owners, the report said.
“The oil slump is expected to have less of a negative impact on Western Canadian economic activity in 2016, which bodes well for the commercial property sector,” Morguard Director of Research Keith Reading stated, as quoted by CNW
According to the report, near-term performance in Western Canada’s commercial property market might exhibit substantial variance between regions, with Vancouver expected to be the leading performer this year.
The multi-suite residential sector in the region is projected to remain nominally strong, with far less vacancies that might lead to tighter competition between families and individuals who are looking for rental spaces.