What happened: Data from Colliers' National Land Report H1 2023 for Canada revealed a strong demand for multifamily land, especially for high-density usage. Over the past five years, land acquisitions increased by 23% in total sales volume. The demand for industrial space has led developers to invest in industrial land in key markets nationwide. What the numbers say: Limited industrial land options in the Greater Vancouver and Greater Toronto areas have driven prices up by 155% and 48% per acre in the last five years. The strong demand for industrial space has ensured availability rate remains at around 1%. The volume of transactions for residential land dropped by 26% in five years. Relevance: Canada's population is growing rapidly, with increasing targets for new immigrants each year. The report predicts a rise in affordability issues if construction is not increased. Residential land transactions have declined as developers wait to finish existing projects, and interest rates have impacted construction financing. |
