RealNet Canada Inc. announced 2015 GTA apartment market results, noting that total dollar volume for the 12-month period reached $1.7 billion, representing a year-over-year increase of 34 per cent compared to 2014 and matching the previous investment record set in 2013.
Other notable records realized in the multi-unit investment sector in 2015 include new highs in price per unit valuations and new lows for capitalization rates. The average price per unit value reached $219,935 in 2015 – rising 13 per cent year-over-year, while yields have compressed even further to an average of 4.6 per cent, representing a decline of nearly 50-basis points when compared to 2014.
2015 notable trends
Foreign investment in the GTA apartment sector gained considerable momentum in 2015, reaching $134 million and representing a surge of 45 per cent in total dollar volume over the previous yearly total of $93 million.
The GTA apartment sector also experienced substantial year-over-year growth in the seniors’ residence investment category. In 2014, the overall dollar volume contributed by seniors’ residence transactions reached $90 million, and grew to $432 million in 2015, representing a staggering 380 per cent annual increase. This trend is consistent with Canada’s aging population, which is expected to double in the next 25 years.
2015 fourth quarter
The fourth quarter was the region’s fifth best-performing quarter on record totaling $457 million, or 27 per cent of the yearly total, and also represents a 30 per cent increase compared to the same period one year ago. Incidentally, no foreign investments were made in the final quarter, however four out of the top five apartment transactions in the quarter were retirement communities. On a dollar volume basis these four deals represented almost half of all seniors’ residence transactions in 2015, and 44 per cent of the overall quarterly dollar volume.
Top 5 apartment transactions
| Transaction Name | Municipality | Price | # of Units | $/Unit |
| Renessa Retirement Residence | Newmarket | $64,000,000 | 158 | $405,063 |
| Hollandview Trail Retirement Community | Aurora | $58,000,000 | 125 | $464,000 |
| 3480 Havenwood Drive & 1485 Williamsport Drive | Mississauga | $50,250,000 | 264 | $190,341 |
| Oak Ridges Retirement Community | Richmond Hill | $40,000,000 | 129 | $310,078 |
| Traditions of Durham Retirement Community | Oshawa | $37,000,000 | 140 | $264,286 |
Richard Vilner is Research Manager at RealNet Canada Inc. (www.realnet.ca), the leading real-estate information services company in Canada.
