As we venture into the second quarter of 2024, Surrey's real estate market is distinguishing itself as a potential area of opportunity within Metro Vancouver. Surrey has seen a surge of activity in the early months of the year, with the number of concrete tower launches already surpassing the entire count of 2023. Three towers launched in March alone in Surrey City Centre and one more is about to start writing. Taken together, this brings over 1,000 units to the market.
Historically, demand had been tempered by elevated interest rates and general market sentiment. Our Director of Advisory, Garde MacDonald, says that these factors make the recent developments all the more significant. "During 2023, there was a lack of certainty about rates; when the year began, fear remained that rate increases were still possible. Now that we are at the top of the rate cycle, developers feel slightly more certainty around the next 12 to 18 months." This newfound stability has buoyed the market after the hesitancy of last year from buyers and developers alike. “The real test for 2024 is the ‘depth of market’—the actual pool of buyers ready to invest in Surrey's towers.”
The Driving Forces Behind Surrey's Rise
The combination of a revitalized market, favourable financial conditions, and Surrey's long-term urban development prospects position it as a key area for real estate investment and activity in Metro Vancouver. Driving interest from an investment standpoint are the solid foundations and ongoing financial commitments in the area. As MacDonald sees it, significant investments from federal and provincial bodies, alongside academic expansions including the University of British Columbia, underscore the city's upward trajectory. With a steady influx of 1,000 new residents each month, projections show Surrey on course to become BC's most populous city by 2029. This not only attracts further investment, job creation and attention, but also fosters a more generally optimistic outlook for the area.
The growth is further buoyed by Surrey's affordability and the potential for increased demand as interest rates decrease, making it attractive to otherwise sidelined purchasers. “Surrey's position as a relatively more accessible market, especially when compared to neighbouring submarkets such as Burnaby and Coquitlam, solidifies its appeal,” asserts MacDonald. The city's success in introducing projects with smaller, more affordable units highlights an effective strategy to cater to a broader segment of buyers—particularly valuable in times of subdued sales activity.
Noteworthy New Projects
Surrey's market revival is epitomized by several promising presale projects, each offering a unique blend of amenities, lifestyle, and investment potential.
Amson Bloc: Developed by the Amson Group, this mixed-use development in South Newton encompasses a four-storey building with daycare and commercial space, alongside a five-storey residential building offering 121 condos. Amson Bloc is designed for modern living, combining convenience with style.
Spera: Brought to life by Northwest Development, Spera introduces 413 condominiums across four wood-frame buildings, with up to six storeys alongside 3,726 square feet of commercial space. It caters to a variety of lifestyles, emphasizing residential comfort and urban convenience.
Stowa: Located in the Gateway District, Stowa features 77 units over six floors, ranging from studios to three-bedroom homes. It offers an array of luxurious amenities, including a fully equipped fitness centre and a rooftop patio, set within a walkable neighbourhood near parks, dining, and shopping venues.
Favourable Financials Make for Long-Term Prospects
Surrey's real estate market in 2024 exemplifies a dynamic blend of growth, affordability, and development potential. With its attractiveness to diverse buyer segments and a surge in new projects, Surrey presses forward as a compelling destination for investors and residents alike.
As the city continues to evolve, its real estate market promises to be a point of interest and investment in Metro Vancouver. For more information on the presale markets of Metro Vancouver, look out for our monthly Presale Pulse Market Insights.
