In June of 2018 the Knew crew headed out to chat with sales teams representing over 50 multi-family developments and nearly 2500 multi-family units currently constructing and/or pre-selling across the Central Okanagan area (West Kelowna, Kelowna and Lake Country).
This was our third time heading out into the field to collect sales, availability and pricing data on the area’s multi-family development market. Remarkably, our efforts have literally doubled since our first round of multi-family shops in June 2017 when there were only 26 sale centres to visit – the good ol’ days. With all of this new momentum behind us, Knew is happy to announce that we will now be performing our new multi-family market surveys on a quarterly basis rather than semi-annually. So, stay tuned for a similar market update sometime in Oct/Nov of 2018!
For now, Knew can report that we observed 189 attached-wall sales and 573 apartment condo sales within projects marketing constructing and/or pre-sale multi-family units across the Central Okanagan in the first half of 2018. By considering these figures alongside existing home sale numbers during the same time period Knew has estimated that the demand for new attached-wall units represented 30% of all attached-wall sales in the first half of 2018 (up from 25% in the last half of 2017), while the demand for new apartment condo units represented 45% of that market (up from 35%).
Notably, sale-through rates of all constructing and/or pre-selling townhome and apartment condo projects surveyed in June 2018 collectively ranged from 73% to 81%. These rates are close to being inline with what we would typically expect multi-family absorption rates to be upon project completion for the Central Okanagan area (70% for townhomes and 95% for apartment condos – based on a 5-year rolling average computed from data borrowed from the Canadian Mortgage and Housing Corporation).
In terms of pricing, those units which remained for sale in June 2018 were priced higher on average than those that had been absorbed in the previous 6 months (in a range of 15% for townhomes to a notable 40% for tower apartment condo units). However, Knew identified an ample supply of forth coming units ready to hit the market between June 15th and September 15th, the date at which Knew will finalize it’s next round of multi-family product shops.
These new units will surely provide new opportunities to purchase unit size and price point combinations that may have previously been exhausted in the first half of 2018.