Following record sales in 2021 and 2022, Colliers’ 2023 National Land Report shows that the real estate market saw a return to pre-pandemic norms, largely influenced by economic uncertainty and stagnant interest rates. As interest rates remain stable and potentially decrease in 2024, transaction activity may increase if land prices decrease and new supply is absorbed.
Industrial sales decreased by about 65%, signaling a drop in future supply and impacts on industrial rents through 2024 into the first half of 2025. Commercial land sales declined by 11% over the last five years and total acres acquired decreased by 62% since 2018, with developers favoring mixed-use residential projects over standalone commercial developments. Montreal was the only exception, with 5% growth.
Vancouver and Toronto focused on purpose-built rentals, with residential land transactions comprising 64% and 71% of total transactions, respectively. Overall residential land activity paused due to a pricing disconnect between buyers and sellers, with sellers maintaining high prices amidst low vacancies. Buyers remained cautious due to rising land, labor, and financing costs, resulting in limited transactions. Calgary was the exception, experiencing an increase in acres sold as developers shifted focus to low and medium density projects.
