August 14, 2023 August 2023 Pre-Sale Report: Anticipating Fall Releases Amid Summer Slowdown

"As predicted, a number of projects rushed to release in June before the summer slow down. After hitting a monthly high for released inventory, July saw significantly less product typical of the summer season and August is expected to be similar.  Same-month absorptions were a steady 33% considering the seasonality. Focus is now on the Fall market – there is some current optimism driving a number of potential launches in the Fall but a looming Bank of Canada announcement early September is still creating some trepidation among developers while buyers look for long-term presale purchase opportunities ” Suzana Goncalves, EVP, Sales and Marketing; Partner, MLA Canada

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JULY SEES MODERATING LAUNCH ACTIVITY AS DEVELOPERS PREPARE FOR SLOWER SUMMER MARKET 

In July the Metro Vancouver pre-sale market exhibited moderate launch activity, with five pre-sale launches—four wood frame and one townhome development—contributed 326 units to the market. This is coming off the heels of the wave of launches in June, which saw sixteen launches and the largest monthly release of inventory in a year. Consequently, the decline in launch activity is well-aligned with the heightened activity in the previous month. Same-month absorptions in July was 33%, aligning with anticipated seasonal trends. Pre-sale launches in July included Adorè by Killarney Group, Latimer South Village (Condos) by Vesta Properties, and Ash 28 by Terra Blanka. 

BURNABY’S INNOVATIVE HOUSING-FIRST STRATEGY LEADS INDUSTRY 

In a bid to alleviate its housing shortage, Burnaby has embarked on an innovative path. The city's "Certified Professional Program" has streamlined building permit reviews by entrusting qualified experts, expediting the development process. This initiative has unburdened bureaucratic bottlenecks and fast-tracked housing projects. 

Building on this success, Burnaby has taken a monumental step by establishing the Burnaby Housing Authority Municipal Development Corporation. This entity holds the power to accelerate housing projects, enhance planning efficiency, and foster collaboration among stakeholders. These measures have invigorated Burnaby's housing sector, revitalizing stalled projects and ushering in new, accessible housing options. 

The impact of these reforms extends beyond construction sites. Burnaby's visionary approach sets a powerful example for other municipalities grappling with housing challenges. Meaningful change is often difficult, but Burnaby's innovative strategies are positioned to drive significant growth within the region. By leading the way in effective housing solutions, Burnaby is shaping a promising future and demonstrating how proactive measures can transform communities. 

CALM BEFORE THE STORM 

There are four presale launches anticipated to launch in Metro Vancouver in August. These launches are set to introduce 804 units into the market. Notably, among these releases, the City of Lougheed by Shape Properties and Citizen by Anthem stand out as major projects. These launches are strategically timed, preceding a wave of concrete launches that are projected to follow in the Fall. Looking ahead to September and October, our analysis predicts at least six significant concrete launches in Greater Vancouver. These forthcoming projects have the potential to contribute over 1,200 additional units to the market, signifying a dynamic period of growth and evolution within the Metro Vancouver pre-sale market. 

Coming soon! Stay tuned for our fully comprehensive overview of the macroeconomics, pre-sale, and resale market video report, Pre-Sale Pulse.

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