Lower Mainland to see fewest number of concrete home launches in over 5 years
With 2019 now nearing a close, it is anticipated Metro Vancouver and the Fraser Valley will see the fewest number of concrete housing project launches in over five years.
According to MLA Canada’s October pre-sale update for multi-family homes, the reduction in the number of concrete condominiums entering the market in 2019 will be 75% lower than 2018.
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The market in the Lower Mainland typically sees between 8,000 and 12,000 concrete condominium project launches, but this year will likely see 3,000 less units.
“This is due to a number of factors including less buyer urgency, increased government intervention and tighter financing regulations,” reads the update.
“The impacts that this will have on our housing market will be felt in the coming years as housing starts and units under construction sharply decline. With demand for housing in BC only increasing, this drastic drop in supply will contribute to future price escalation and affordability factors.”
There were about 911 units in 16 project launches in September, and 671 units in 12 project launches in October, with the sales rate hovering at around 20% for both months over the first 30 days of a project launch.
But projects in the Fraser Valley are seeing greater success, with nearly 50% of wood frame multi-family homes — deemed to be products for first-time buyers — selling within the first 30 days.
“Increased activity in the resale market, especially in price sensitive markets, is having a noticeable positive effect on the success of pre-sales,” continues the update.
For November’s forecast, analysts expect to see just six project launches with a combined total of 292 units.
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