London’s hot housing market is helping fuel demand for a new residential complex in the southwest corner of the city.

Old Oak Properties plans to construct buildings of 14 storeys and 12 storeys along with 14 townhouse units on Morgan Avenue near the intersection of Wonderland and Southdale roads.

Both towers will be apartment rentals with 161 units in the 14-storey building and 113 in the 12-storey building.

Old Oak president Greg Bierbaum said the Morgan Avenue project, as yet unnamed, is in a strong growth area and close to shopping and other amenities in the Wonderland Road commercial corridor. The extension of Bradley Avenue from Wonderland to Wharncliffe Road will speed transportation in the area, he said.

Canada Mortgage and Housing Corp. said London’s apartment vacancy fell to 2.1 per cent last fall, the lowest since 2003.

Bierbaum said many empty nesters are selling their homes, taking advantage of hot real estate market with record sales being set every month this year.

“It’s a broad demographic trend, empty nesters, retiring baby boomers are selling their homes and cashing out.”

Old Oak recently finished the Mosaik luxury apartment building on Sugarcreek Trail and is completing the second tower of the Hyde Park Place apartment project in the Fox Hollow area. A third tower for that site also is planned.

The most high-profile project for Old Oak — a 33-storey 175-unit apartment tower at 515 Richmond St. at Dufferin Avenue — will begin next spring.

Bierbaum said construction on the Morgan Avenue project should begin within 18 months.