I am presently in the process of initiating the construction of a apartment complex in Kamloops. This is a summary of my general perception of the market for prospective purchasers - marco picture / local picture. If anyone had input as to how they perceive its accuracy I would be most grateful.
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Real Estate Market Perspective – Apartment Complex Kamloops
The observations offered here are born of the assessment of the market in the context of the construction and sale of an apartment complex that accesses the upper market decile, with unit prices ranging from $350k to $850k. This complex’s interface with the market is somewhat less affected by the typical influencing factors in the market - employment, interest rates, general economy etc., because it is targeted, in large measure, to a discerning buyer at financial maturity – they are likely to buy a second residence or they are downsizing as a part of the typical life course.
While this offering is to a degree atypical, there is opportunity to at the upper margins of the “investment market” to incite participation. The proponent senses if the investment market is provisioned for that a favourable outcome will ensue; so long as, the theme of the building is held paramount in terms of ensuring that there is compatibility with occupants and or the strategic allocation of space.
It is the sense of the proponent that we have a stable local market generally, that the local market has recently been trading more or less sideways against stable inventory and the local market is beginning to show some modest growth. The violent undulations of other markets and of the Kamloops market in the past, are less present in the contemporary Kamloops market, due in large measure to a more diversified local economy and perhaps, Kamloops is now becoming a moderate destination for lower mainland and prairie residents accessing the advantages of our market vis-a’-vis larger center’s markets.
This local market perspective is offered against the backdrop of sustained very low interests rates in the near and perhaps midterm, rising employment, a moderately favourable near term economic picture and an anticipated acceleration is to a strong and sustained up cycle in the medium and long term. This perspective is offered on the basis of central bank actions and a perception that, the cycles that were causal in generating the recession are correcting so as to effect a confluence of events to feed a super cycle beginning in and around 2018.
This general market picture bodes well for the proposed development. The larger units targeting to people downsizing from large homes are to a degree “isolated” from the market, given the type and nature of the purchaser. The smaller units targeted to a discerning lateral purchaser or “investor purchaser” land at the about the average home value in Kamloops and the upper end of the apartment market, this narrow market segment (market segment peculiar to this building) will be supported by an historical (20 year average) absorption rate of approximately 7 - 10 units per month, as well as, the favourable local and general market conditions.