There was an uptick in pre-sale condominium project launches in Metro Vancouver and the Fraser Valley throughout May 2019, according to MLA Advisory’s latest pre-sale real estate insights.
Analysts recorded 10 project launches creating a combined total of 539 pre-sale units for May, and the forecast for June calls for nine project launches with 737 pre-sale units. These numbers are an increase from April’s seven project launches, but the actual number of pre-sale units was higher at 779 for the first month of the second quarter.
For the month of May, about 22% of the units in the newly launched projects have been sold.
The Fraser Valley, in particular, has been leading the way by stimulating the market with the introduction of wood frame condominiums and townhomes, with Abbotsford experiencing the strongest interest.
Overall for the second quarter of 2019, it is expected over 2,000 units will be released across the Lower Mainland, including 140 concrete homes, 1,540 wood frame homes, and 375 townhomes.
MLA Advisory also says the detached market is showing signs of overall price stability after undergoing a downward trend for multiple quarters. While the condominium market is experiencing stagnant price growth, detached homes are starting to show some positive price changes.
For May, Metro Vancouver had an overall monthly benchmark price change of -0.8%, with localized submarkets such as New Westminster recording a growth of +1.4% and Burnaby East seeing +1.5%.
The Fraser Valley is also showing signs of positive stability with an overall detached market price growth of +0.2%.
All the while, developers have been adapting their pre-sale strategies by extending their launch timelines to the following month to generate more interest from prospective purchasers.
Some marketing campaigns have also taken creative twists to catch buyers’ eyes within the challenging market conditions.
“It is becoming increasingly common for developers to hold longer preview periods and postpone writing contracts until public interest in the project is more certain,” said Suzana Goncalves, EVP of sales and marketing and a partner of MLA Canada, in a statement.
“Developments offering unique product offerings and carefully curated purchaser incentives that truly reflect their buyers are seeing greater sales activity and foot traffic. Avocado toast took over the airways and continues to show success with copycats now looking to get more creative and follow suit.”