Victoria is the capital city of British Columbia, and is located on the southern tip of Vancouver Island. The city has a population of about 80,017, while the metropolitan area of Greater Victoria, has a population of 344,615. Strong growth in population is expected and a major need for affordable housing is creating a very open municipal climate for investors.
Why Invest in Victoria?
Since the economic downturn of 2008, the real estate market in Victoria had been very flat, this made for consistent, unemotional investing, with tight cashflow.....until the 3rd quarter of 2015. We started going up and we haven't stopped! Our market in Victoria is moving fast, but there are still deals to be had, you just have to be ready to act.
We are seeing a major influx of Vancouverites that are taking advantage of the housing windfall that came to them, moving out to live the lifestyle they want, while buying nicer homes than they had before, and still having money in the bank! The same applies for renters...tired of paying the high prices for Vancouver, yet not wanting to give up lifestyle by moving to the Fraser Valley, we are seeing an upward shift in younger, working age families, putting down roots on the island. In fact, 59% of residents in Victoria, are renters, a higher average than normal.
Industry experts have pegged Victoria as one of the top 5 spots to buy in BC, and with City Council looking at making Garden Suites, Secondary Suites and Multiple suites all easier to get permits for, it may soon seem like an investors paradise. The market offers tremendous value, and with the extreme shortage of inventory, demand is pushing our prices higher. There is also an acute rental crisis here, which makes it easy to find renters, and though cashflow has tradtionally been tougher to get, we are seeing an upswing there as well. Though as always, caution is needed when using this strategy, however, flipping houses can finally be quite lucrative again in Victoria's market.
Victoria is different than many markets in Canada. Traditionally, our population has been getting older, not younger, our young people used to move away (and take their spending with them), our incomes don't show as very high as we are very much a retirement community...these would normally have been red flags...and still can be. So KEY to taking advantage of this fast changing opportunity is working with a Realtor who is an Investor themselves, that understands how demographics (income, median age etc) affect the regions real estate. Click the CONNECT ME button on our Home Page to connect with a Realtor that can walk you through the landmines...straight to the goldmines.
Victoria Market Facts (Last published):
- 2016 Vacancy Rate: 0.6%
- Average MLS residential sale price: $745,700
- Average MLS Days on Market (DOM): 33
- Total Market Listings (MLS): 2060
- Average weekly earnings (BC): $910
- Average 2 bedroom rent: $1095
- Unemployment Rate: 4.9%
The population of Victoria proper, was 80,017 in 2011.
Greater Victoria, has a population of 344,615 and is the largest urban area on Vancouver Island.
Investors wanting information on Garden Suites, Secondary Suites, redevelopment plans etc, can visit https://www.victoria.ca/EN/main/residents/building-renovating.html