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Research Roundup: How is Ottawa's real estate market doing?

Research Roundup: How is Ottawa's real estate market doing?

Date Posted: March 15, 2018

Genworth Canada released their Ontario Regional Risk Report for February 2018 on March 2.

  • According to the report, a seller's market is prevailing in Ottawa with the number of sales (year over year) up by 7% and the average price (year over year) up by 5%.
  • The sales to new listings ratio is 64%.
  • "The average sale price of a residential-class property sold in January in the Ottawa area was $427,487, an increase of 9% over last year. The average sale price for a condominium-class property was $263,744, a decrease of 9% from January 2017."

CBRE published their 2018 Canadian Market Outlook on March 7.

The report devotes three pages to Ottawa (starting on page 42) and includes the following:

From Regional Statistics:

  • Multifamily high rise cap rates are forecast to hold (year over year) at between 4.0 and 4.25.
  • The multifamily vacancy rate forecase for 2018 is up to 3.2% from the 2017 rate of 1.7%.
  • The 2018 forecast for average rent for a 2 bedroom unit is up to $1,245 per month over 2017's $1,232.
  • The report predicts that 1846 new rental units will be added to the supply in 2018.

From Projects to Watch: "Zibi, a multi-phase, mixed-use development by Windmill Development Group Ltd. and Dream Office REIT will transform the old Domtar lands in Ottawa and Gatineau into a world-class sustainable community. Set to start development in 2018, Phase I is scheduled to be complete for 2023, with the full site anticipated by 2026."

From Key Trends: "The largest office transaction of 2017 was Shopify leasing 325,000 sq. ft. at the old Export Development Canada building at 234 Laurier Avenue West. Shopify and the rise of urban tech has helped change the conversation of commercial real estate in Ottawa from one that was exclusively based around the federal government to that of an emerging tech-hub in Canada. As more tech companies mobilize into the downtown core, this leading-edge tenant has the potential to change the landscape of downtown Ottawa in 2018 and beyond."

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