At CBRE's annual Market Outlook Breakfast in November, a clear theme emerged: multi-residential developers have shifted focus to the Halifax peninsula. With over 50% of the multi-residential units currently under construction located on Peninsula, this shift will have a meaningful impact on the urban core of Halifax.
Housing Price Regulation Thesis Defense by Slidesgo.pptx
1Q 2016 Halifax Multi-Residential Market
1. HALIFAX
MULTI-RESIDENTIAL MARKET
Robert Mussett
Senior Vice President
902 492 2077
robert.mussett@cbre.com
Chris Carter
Vice President
902 492 2085
chris.carter@cbre.com
Andrew Cranmer
Sales Associate
902 492 2065
andrew.cranmer@cbre.com
Edwina Govindsamy
Client Service Assistant
902 492 2069
edwina.govindsamy@cbre.com
CONTACT US
A Strong Shift to the Peninsula
At CBRE’s annual Market Outlook Breakfast in
November a clear theme emerged; multi-residential
developers are shifting focus to the Halifax Peninsula.
There are approximately 3,100 units currently under
construction throughout Halifax, 51% of those units
(1566) are on the Peninsula and another 37% (1138)
in the Mainland North/West Bedford areas. The Parks
of West Bedford is driving off-peninsula development
but focus has clearly shifted out of the suburbs and into
the downtown, a change very different compared with
historic development trends.
Another, new aspect of the shift to the peninsula, is the
return of institutional developers. Killam Properties and
GWL Realty Advisors have invested in development
opportunities and high-profile sites are now under construction or open such as, The Alexander and 1920 Brunswick Street. In addition,
new entrants to the market such as Starfish Properties and Urban Capital are undertaking developments on the peninsula.
Nevertheless, Halifax has a strong local development community and groups including Westwood Group, Banc Properties, WM Fares
and Southwest Properties have acquired premium sites in the downtown. These developers continue to actively build on the peninsula with
projects such as the Doyle Block on Spring Garden, The Pavilion and the Sister Sites - The Mary Ann and Margaretta.
Currently CBRE is tracking 430 units to open in 2016 and that number is expected to increase to ± 1,150 units in 2017. Projects such as
The Alexander (240 units), Maple (300 units), Point North (140 units), The Roy (135 units) and Monaghan Square (162 units – Tower 1)
are leading the way for this influx of new supply. We forecast that the overall vacancy rate for apartments in Halifax, currently at 3.4%, will
increase in 2016 to 3.6% and to ± 4.0% in 2017 given the amount of new supply coming to market.
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0.5
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1.5
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2.5
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3.5
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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 (f)
Rental Apartment Vacancy Rate
Source: CMHC, Halifax Rental Market Report, 2015.
CBRE Research 2016
Historic 10 Year average = 3.1%
3.6%
Overall Vacancy Rate (YoY)
3.4% r, 201
Overall Average Rent (YoY)
$974
Units Under Construction
3,081
First Quarter, 2016
CBRE CAPITAL MARKETS | ATLANTIC CANADA