October Real Estate Market Data & Insights
THIS EPISODE IS NOW AVAILABLE IN AUDIO
"October saw our largest release of inventory in a single month this year and our same month absorption remained steady at 40%. Resale supply continues to decline which is pushing buyers to the presale market and the overall market continues to be active and steady with more price appreciation to come." Suzana Goncalves, EVP, SALES AND MARKETING; PARTNER, MLA CANADA.
OCTOBER SEES LARGEST RELEASE OF PRESALE INVENTORY IN A SINGLE MONTH THIS YEAR
The fall was forecasted to bring a new wave of presale condominium and townhome product to market in Metro Vancouver and October did not disappoint. In total, October saw 15 presale projects launch within Metro Vancouver, releasing 2,525 units to market. Not only is this nearly double the average number of units released in a single month this year, it makes October the most active month in terms of total launched presale product. When you consider that this is occurring in the fall, a season typically characterized by decreased presale and resale activity, it’s clear that developers are thinking strategically to capitalize on current tailwinds occurring in our market. Among other things, they include the Lower Mainland’s critically low inventory, strong buyer confidence, and an eagerness among purchaser’s looking to enter the market before rate increases occur in 2022. Key launches in October include Myriad by Concert Properties, The Towers by Vesta Properties, and Fifteen Fifteen by Bosa Properties and Kingswood Properties.
A RETURN OF DEMAND FOR PREMIUM REAL ESTATE IN THE DOWNTOWN CORE
As we move into the final weeks of 2021, Greater Vancouver continues to see unprecedented demand within its real estate market. Sustained market activity over the latter half of this year has been complimented with increased consumer confidence in not only Vancouver, but specifically within its downtown core. This is highlighted within the resale market, which saw condominiums selling for over $1M in the downtown area increase by 20% in October compared to the same time last year. The presale market has similarly seen robust market activity that highlights renewed interest among purchasers willing to pay a premium for high density, city living. Heighted interest in Metro Vancouver’s most luxurious condominium market is encouraging developers to release held back penthouse and sub-penthouse product and is signaling to developers with readily approved projects that now may be the right time to launch their product. Overall, MLA Canada expects downtown Vancouver to take centre stage in 2022 as developers launch projects into the market.
EXPECT ELEVATED PRESALE ACTIVITY TO CONTINUE INTO 2022
The Metro Vancouver market is forecasted to bring 13 projects and 1,796 units to market in November. This continues a trend of elevated presale activity within our market that we have seen throughout 2021. Now, as we move towards the end of the year, there has been debate among developers on whether to launch before year-end or to wait until early-2022. While reasons for when a project launch are multi-faceted, developers have been encouraged by robust demand and the added flexibility afforded by the extended early marketing period, which was permanently extended to 12 months in May. Even so, there are several major concrete condominium projects slated for early-2022 that are beginning previews and will be comprised of a new wave of presale products in Metro Vancouver. Shape Properties held a realtor preview event for the fifth tower in Amazing Brentwood’s master-planned community, and Solo District by Appia Developments is expected to sell the fourth tower of Solo District in early-2022 after the project’s third tower receives occupancy in early-December.
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