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New research shows economic fundamentals, growing jobs and population, and impact of foreign buyers tax make Victoria a good investment city

November 14, 2016

November 14, 2016
FOR IMMEDIATE RELEASE
 

New research shows economic fundamentals, growing jobs and population, and impact of foreign buyers tax make Victoria a good investment city

Economic fundamentals suggest Victoria may outperform many BC real estate markets

Langley, BC: New research by The Real Estate Investment Network (REIN) finds Victoria, BC meets criteria for a stable and sustainable investment market and finds the city poised to outperform many other non-Metro-Vancouver real estate markets in BC. As the foreign-buyers tax shifts demand to Victoria, the report finds this is only one of many factors causing the upward movement of property demand and values; our research shows that growing diversity in economics and demographics support this demand.

REIN’s Authentic Canadian Real Estate (ACRE) system, including the Long-Term Real Estate Success formula, predicts growth in GDP, jobs, and population, leading to sustainable real estate investment markets. Applied to Victoria, The REIN Victoria Economic Fundamentals report, which can be found at www.reincanada.com/research-reports, finds Victoria is growing in the three key indicators, and more:

  1. Economic growth - with GDP forecasted to increase 2.3% through 2016.
  2. New jobs and diversification of job sectors – from steady post-secondary education and cruise industries to an increasing technology sector (with 880 tech companies, creating 15,000 direct), job growth is expected to continue.
  3. Population growth – The population is predicted to increase four – five percent every five years through 2025, this is driven in part by:
    1. New jobs attracting university students to stay in the city post-graduation
    2. New jobs attracting an influx of people from elsewhere seeking employment
    3. Mainlanders escaping exorbitant housing prices as the impact of the tax on foreign buyers drives up real estate prices throughout the Lower Mainland
  4. Strong rental demand, exceeding supply – Victoria’s extremely low vacancy rate, at 0.6 per cent, is forecast to remain low through 2017 and beyond.

“From this moment forward, given the changing demographics and economics occurring in the city, investors and homeowners will witness longer periods where the market will outperform the majority of non-Vancouver markets in the province, with fewer slow-market periods than historically expected” says REIN’s Senior Analyst Don R. Campbell. This increase in stability in the housing market will lead to increased stability in an investor’s portfolio.

The increased economic diversity resulting in an expanding job base make the city attractive to people seeking jobs and affordability. As a result, Victoria is becoming a vibrant centre of commerce and education. Indicators on REIN’s Long-Term Real Estate Success formula suggest real estate investors and homebuyers willing to do proper diligence will find reasonable returns in Victoria.

In addition to this research report, REIN’s demographic and economic analysis and research predict that, in approximately five years, the highest demand for rentals and purchases will trend towards two or more-bedroom unit properties.

About REIN:

The Real Estate Investment Network (www.reincanada.com) is Canada’s most trusted real estate investment education, analysis, research and strategic leadership resource. REIN provides real estate investing workshops, services and products for its Members and the public. Since its founding in 1992, REIN has delivered balanced and impartial research and economic insights integrated with relevant and cutting-edge analysis.

 

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For more information:

Full report:
www.reincanada.com/research-reports

Long-Term Real Estate Formula graphic: http://cdn3.reincanada.com/Research/Long_Term_Success_Formula_Graph_2016.pdf

Spokesperson headshot:
http://cdn3.reincanada.com/Research/Don_R_Campbell_headshot.JPG

 

Contact:

Jennifer Hunt

Director Strategic Projects

Real Estate Investment Network

media@REINCanada.com

604.449.6034


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