"Another record-setting month in October with over 6000 MLS sales transactions across Greater Vancouver and the Fraser Valley along with strong absorptions in the presale market in both existing inventory and newly released projects as the flight to space continues.” Suzana Goncalves EVP, SALES AND MARKETING; PARTNER, MLA CANADA
ELEVATED LAUNCH ACTIVITY IN OCTOBER
There were fourteen presale project launched in October 2020 that released approximately 1,524 condominium and townhome units to market. These projects are primarily located in Greater Vancouver, with particular concentration in West Coquitlam, Vancouver East, and Vancouver West. Of the 1,524 presale units released to market in October, 25% sold. This absorption rate is on par with the last two months of presale activity, however, given that there was more supply released in October than the previous three months combined, this absorption is extremely strong. Of the newly released units, wood frame condominiums had the highest absorption rate (35%) followed by concrete condominiums (25%) and townhomes (17%). Two exciting concrete projects that launched sales in October were Format by Cressey in East Vancouver and Apex by Denna Homes, which is the final addition to their Seylynn Village in North Vancouver.
BOOSTED IMMIGRATION TARGETS SIGNAL OPTIMISM FOR 2021 AND BEYOND
On October 30th, the Federal Government announced new immigration targets that seek to bring over 1.2M new permanent residents to Canada from 2021-2023. Compared to previous targets, this represents an increase of 50,000 new residents per year over the next three years. This announcement comes as Covid-19 cases continue to rise in our largest cities and the US-Canada border remains closed to non-essential travel. Moreover, Canada’s immigration target for 2020 hoped to settle 341,000 people, but as of September had only settled 128,425 people (37.6%). With this expected increase and the housing requirements they will need, a strong focus will now need to be placed on ensuring we have the supply to accommodate the increase – the impact to pricing otherwise will be swift. This recent announcement by the Federal Government sends a clear signal to the real estate industry and instills cautious optimism moving into 2021 and beyond.
INCREASED COVID-RELATED PROTOCOLS AS CASES RISE
Throughout October and into November, there has been growing concern about increasing Covid-19 cases across the Lower Mainland. Because of this, the Real Estate Board of Greater Vancouver (REBGV) advised its agents to avoid open houses and prioritize virtual communications. Furthermore, on November 7th, Provincial Health Officer Bonnie Henry implemented a two-week plan with increased diligence and protocols related to physical distancing, workplaces, and indoor social gatherings. Although these new regulations will have an impact, there have been significant learnings over the past six months and the real estate industry is equipped to work remotely and facilitate transactions virtually. As a result, MLA Advisory forecasts that there will be continued presale activity in November and nine pre-sale projects will launch sales; these projects will bring approximately 439 concrete condominium, 51 woodframe condominium, and 301 townhome units to market.