Most parts of the residential real estate market are stalled as buyers sit on the sidelines and wait out the recent economic uncertainty

But amid tumbling stock markets and panic about international trade wars and tariffs, one broker is seeing a mini-burst of sales activity in Metro Vancouver multi-family rental buildings.

“In the last three weeks, we have listed five properties and sold five properties. We have put ‘under contract’ four properties and reduced the price on three additional properties,” said Mark Goodman, principal broker at Goodman Commercial, which specializes in land and rental apartment building sales.

Most are older buildings in Marpole, east Vancouver and Burnaby. One that is under contract for sale is a 48-suite apartment building on Granville Street in Marpole that sits on a 76-metre-long corner lot, and is asking $12.7 million.

Goodman describes the current market as being more liquid than it has been over the last couple of years. The backdrop includes prices that have come down between 25 and 30 per cent, and interest rates that have stabilized. There are also more listings as an older generation of owners wants to get out of the market because rents are dropping while repair and maintenance costs are rising.

Things shifted more forcefully in the past few weeks and, in an online post this week, Goodman noted: “We’re screamin’ busy as investors flock to safer, more predictable returns.”

Stock markets have plummeted this week in response to U.S. President Donald Trump’s steep tariff hikes for countries around the world and the possibility of the global economy going into recession.

“Historically, we’ve seen drops, but, for people who know the stock market better than me, this is a big deal,” said Goodman. “We’re seeing a massive recalibration now around the world.”

He thinks that as investors in the stock market get skittish, they look to buying assets that don’t deliver as aggressive returns, but are more predictable.

He said most of the sales in the current mini-flurry of activity are by local investors who have real estate portfolios in place and have managed multi-family buildings.

“This is their main business as opposed to professionals who are dentists, doctors or accountants who are buying this as a passive (investment),” said Goodman.

University of B.C. real estate professor Tsur Sommerville said rental buildings aren’t traditionally thought of as a ‘flight to safety’ investment move.

“But I am not sure what is right now,” he said.

He noted there are many more rental units that will be coming onto the market and that rental rates are already falling.

“It’s not one of the more secure assets that people buy in global macro uncertainty, but these have been sitting for awhile. A lot have had price cuts and, for some investors, it may well be safer than the other things they are considering for where to park their money.”

He said more classic examples of investing in turbulent times are to buy gold or U.S. dollars.

Vancouver-based Patrick McEvay, who specializes in apartment building transactions at Marcus & Millichap, said there is a different situation to each market, submarket and property. He noted the number of first-quarter sales of multi-family rental buildings in the Lower Mainland this year compared with last year is very close, and that some deals are years in the making.

The “market is primed for buyers,” but many are waiting to see where the overall turmoil from the trade wars as well as the outcome of the federal election will land, he said.

However, he agreed there are some who are starting to see multi-family rental buildings as a “great investment to weather out the storm in comparison to other investments.”