OVERALL MARKET SUMMARY

In this highly anticipated First edition of the Fifth Dimension for 2023, we are thrilled to present the invaluable insights provided by our esteemed data collection and analysis partner, Zonda Urban. Their expertise and comprehensive analysis offer a compelling commentary on the recent quarter’s performance, a comprehensive overview of the market’s year-to-date achievements, and a tantalizing glimpse into what lies ahead for Metro Vancouver’s thriving multi-family residential real estate market.

Q1 — New Home Market

Metro Vancouver’s new home market showed signs of recovery in the First Quarter of 2023 after experiencing near-record low sales throughout the second half of 2022. Although buyer activity in certain segments of the market is indicative of positive momentum, many developers have still delayed their respective project launches to wait for improved economic and/or purchaser sentiment.

Only 12 new projects were launched over the quarter releasing 1,415 units into the market. Total inventory released in the First Quarter of 2023 was significantly lower than previous first quarters. The 2,141 total new home sales recorded during the First Quarter of the year marks the lowest First Quarter total since 2013.

On a positive note, overall First Quarter sales were six percent higher than the previous quarter. There were 7,462 released and unsold units remaining at the end of the First Quarter, a nine percent decrease from the previous quarter but a 45 percent increase from the same quarter last year. 973 completed unsold new multi-family homes were available at the end of the First Quarter, up three units from the previous quarter and up 96 percent from the previous year.

A total of 1,286 High Rise sales were recorded in the First Quarter of 2023, a 54 percent increase from the previous quarter but 69 percent fewer than the same quarter last year. High Rise sales accounted for 60 percent of new home sales during the quarter.

There were 5,249 released and unsold High Rise units available at the end of the First Quarter, a five percent decrease from the previous quarter but a 34 percent increase year-over-year.

The majority of High Rise sales occurred in the Burnaby/New Westminster sub-market, which accounted for 44 percent of all High Rise sales during the quarter. Combined High Rise sales in the Burnaby/New Westminster, Central Surrey/North Delta, and Tri-Cities sub-markets accounted for 85 percent of sales in this sector, and 51 percent of all new multi-family home sales during the quarter. Notable sales activity occurred at Anthem’s first tower of South Yards (Brentwood), Lucent by Landa Group (City Centre), Perla by Polygon (Metrotown), Marcon’s Elmwood (Burquitlam), Band by Townline (Burquitlam), and Concord’s Oasis (Brentwood)

The 535 new Low Rise condominium sales recorded in the First Quarter of 2023 were 43 percent lower than the previous quarter and 66 percent fewer than the number sold in the same quarter last year. The decrease in sales when compared to the previous quarter can be explained by a lack of project launches to the market; only three new Low Rise projects were launched during the quarter which added 251 units to the market.

This compares to the 10 new project launches which released 1,049 units in the previous quarter. The 1,213 released and unsold units at the end of the First Quarter represents a four percent decrease from the previous quarter. The Tri-Cities and Central Surrey/North Delta sub-markets experienced the highest number of new Low Rise multi-family home sales in Metro Vancouver as they accounted for a combined total of 286 unit sales.

Notable sales activity across Metro Vancouver’s Low Rise condominium sector was noted at Whitetail Homes’ Galilea (City Centre), the second building of Highstreet Village by AB Wall (Abbotsford), Marcon’s Hue (St. Johns), Florin by Allaire/Circadian

Group (Burquitlam), and Lennox by Polygon (Central Lonsdale).

A total of 320 new Townhome sales were recorded in the First Quarter of 2023, which represents a 29 percent increase from the previous quarter but a 51 percent year-over-year decline. There were 1,000 released and unsold Townhome units at the end of the First Quarter, which is eight percent higher than the previous quarter and 100 percent higher than the same quarter last year.

The available Townhome inventory continues to rise as sales activity for this product remains low. There were only five new townhome projects launched during the quarter which released 113 units into the market. Sales activity was observed at The Loop by Gramercy Developments (Grandview Heights), Garcha’s Union Willoughby (Yorkson), Oakley by Warwickshire Homes (Willoughby Heights), Westhampton at Hampton Cove by Polygon (Ladner), AB Wall’s Highstreet Village (Abbotsford), and Heath by BM Group (Yorkson).

Q1 — Resale Market

Taking a closer look at the various product sectors, we observe an encouraging upward trend. High Rise, Low Rise, and Townhome resales experienced impressive growth rates of 58, 22, and 43 percent respectively, compared to the previous quarter. Although these figures show a decline compared to the same quarter last year, with decreases of 49, 52, and 50 percent for High Rise, Low Rise, and Townhome sectors respectively, it is vital to consider the broader market context and evolving consumer preferences.

The availability of active listings also witnessed a positive surge, highlighting an increased supply of options for prospective buyers. Overall, active listings rose by an impressive 34 percent compared to the previous quarter and 35 percent relative to the same quarter last year. This trend extends to the High Rise, Low Rise, and Townhome segments, with notable increases of 38, 41, and 20 percent respectively, compared to the Fourth Quarter of 2022.