The Fifth Dimension Fall Edition 2023

THE FIFTH DIMENSION FALL EDITION 2023 A Comprehensive Analysis of the Metro Vancouver Multifamily Market

Produced in Collaboration With:

WELCOME TO THE FIFTH DIMENSION With the turning of the leaves to brilliant reds, yellows and oranges we commence this autumn issue of the Fifth Avenue Real Estate Marketing Limited’s (Fifth Avenue) Fifth Dimension. As a service to our industry, we offer this definitive guide on the new multifamily home market in Metro Vancouver each and season year round.

Four more than four decades Fifth Avenue has been a leading full service, suburban and Fraser Valley market-focused residential real estate sales and development marketing. We are a partner of Peerage Realty Partners whose BC network also includes Okanagan-based Epic Real Estate Solutions Inc. and Vancouver BakerWest Real Estate Incorporated, in addition to strategic partnerships with Vancouver Island based DFH Real Estate and Island Realm Real Estate. Together we cover British Columbia’s ever changing and expanding new home market.

The supporting data for this report is objectively collected and presented by renowned and renamed Zonda Urban, a leading provider of advisory services on the new Multifamily home market and a vital contributor to this report since 2010.

There is no question that amid all this uncertainty that the market overall has seen a dip in sales activity over the third quarter of 2023 when compared to the previous quarter, a 28 percent decline). This is still in positive contrast to the overall compared to the same period in 2022.

Sales this past summer and year to date sales are actually up 70 percent overall year-over-year.

As we enter the concluding weeks of what will be the market story of 2023 one can not help recall the significant ebbs and flows to date. It has been a year very much about government intervention. From holding our breath over each interest rate announcement to date (with possibly one more to come before the end of the year), to the to the taking aim on owners of short-term rental accommodations without a consideration of markets outside the primary metropolitan area to “naughty lists” and new announcements with respect to local housing targets for each

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city, we are all weathering now blustery market conditions and winds of change.

With the higher cost of borrowing for consumers today it is worth noting that developments with the longest completion dates are achieving the highest sales activity. Home buyers are banking on prices continuing to increase in the long run, and interest rates dropping prior to having to complete today’s real estate purchases. On the other hand, developments with standing inventory or inventory completing in under a year are struggling compared to those on the market completing in 2025 or later. In addition to the higher costs for consumers, the higher rates also mean higher construction costs for developers, making it near impossible for any real price movement in either direction at the moment.

However, along with rising rates and ongoing efforts to combat inflation comes rising wages, rising transportation, and import costs. In addition, cities and municipalities also seem to be increasing their development cost charges and community amenity charges putting further pressure on pricing and discouraging new supply. This does not always seems to make any sense.

Due to all of these factors, purchasers and developers have continued to assess the market and are expected to hold off needed new home inventory until the numbers make sense for them to be able to move ahead again.

Meanwhile, Townhome product has become the new single-family dream alternative for the majority of today’s buyers given product averages up to and over the million-dollar mark now. In addition, Townhome cost escalation has pushed pricing to the point that the majority of all new home sales are Low Rise and select High Rise product offerings. As a result, only five new Townhome developments launched across Metro Vancouver and the Fraser Valley for the quarter.

Overall the dynamic market landscape signified some promising shifts within central markets of Vancouver East, Vancouver West, and

Richmond all transitioning from a cautious “yellow light” in First Quarter to encouraging “green lights” in the Second Quarter are now back to mostly yellow lights. However, certain pockets have moved to a “green light” due to an overall lack of inventory with increased sales absorptions, mainly on new Low Rise product as the new High Rise product will have further code changes increasing the costs to deliver these homes further over the coming months. Low Rise offerings will be the most attainable and thus the least risky new home product of the future.

Downtown Vancouver saw only 30 total sales over the Third Quarter with Curv by Brivia Group representing half the total share of this market area. Vancouver West, East, Richmond & South Delta, the Tri-Cities, Central Surrey/North Delta, and Langley/Cloverdale markets have all shifted to a “yellow light” quarter. Burnaby/New West, the North Shore, Ridge/Meadows and Abbotsford/Mission markets have maintained or moved to a “green light” status for this quarter with the highest sales activity in the Low Rise sector.

As we navigate the winds of fall, we will have to wait and see where everything lands along with how our industry adapts over the final quarter of this year with the final chapter of this shifty 2023 market story setting the scene for new beginnings in 2024 Regards, and all the best.

Jamie Squires Jamie Squires President & Managing Broker Fifth Avenue Real Estate Marketing LTD. Jamie@fifthave.ca

TABLE OF CONTENTS WELCOME TO THE FIFTH DIMENSION

2

OVERALL MARKET SUMMARY

4-5

MARKET SUMMARIES

6-29

Vancouver Downtown

6

Vancouver West

8

Vancouver East

10

Richmond & South Delta

12

Burnaby & New Westminster

14

North Shore: North & West Vancouver

16

Tri-Cities: Coquitlam, Port Coquitlam & Port Moody

18

Ridge Meadows: Maple Ridge & Pitt Meadows

20

Surrey Central & North Delta

22

South Surrey & White Rock

24

Cloverdale & Langley

26

Abbotsford & Mission

28

LOOKING BACK & AHEAD

30

RESEARCH METHODOLOGY

31

Proud Peerage Realty Partner

OVERALL MARKET SUMMARY In this Fall edition of the Fifth Dimension for 2023, our data collection and analysis partner Zonda Urban shares its commentary on the recent quarter, market performance year to date, issues and challenges heading into the holiday season and new year and what to expect in the upcoming quarter with respect to Metro Vancouver’s multifamily residential real estate market Q3 — New Home Market Like the temperature, Metro Vancouver’s new home market has been cooling after resiliently weathering ten consecutive Bank of Canada interest rate hikes in less than 20 months. Although, sales activity declined in the quarter, it remained relatively robust compared to the near-record low sales experienced in late 2022 and early 2023. Overall Third Quarter sales were down by 28 percent when compared to the previous quarter.

Amidst uncertain market conditions in the summer, developers extended previewing periods for their projects to assess consumer interest and confidence in the market. In cases where the initial response to a project did not meet requirements, project launches were postponed or remain in “VIP-previewing” mode.

A total of 2,682 new home sales were recorded during the Third Quarter of 2023, which is a near 70 percent increase in sales volume when compared to the same quarter of 2022. A total of 23 new projects representing 2,095 units were introduced during the quarter, which is fewer than the 37 new projects consisting of 3,654 units released in the Second Quarter of 2023. Furthermore, there were 8,064 released and unsold units remaining at the end of the Third Quarter.

This reflects a half percent increase from the previous quarter but a four percent decrease from the same quarter last year. Additionally, there were 1,154 completed unsold new multifamily homes available

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at the end of the Third Quarter, marking a 144 unit increase from the previous quarter and a 70 percent increase from the previous year.

A total of 1,459 High Rise sales were recorded in the Third Quarter of 2023: a 12 percent decrease from the previous quarter but 129 percent higher than the same quarter last year. High Rise sales accounted for 54 percent of new home sales during the quarter.

There were 4,962 released and unsold High Rise units available at the end of the Third Quarter, an eight percent decrease from the previous quarter and a 15 percent decrease year-over-year.

The majority of High Rise sales occurred in the Burnaby/New Westminster market area, which accounted for 41 percent of all High Rise sales during the quarter. Combined High Rise sales in the Burnaby/New Westminster, Tri-Cities, and Central Surrey/ North Delta market areas accounted for 76 percent of sales in this sector, and 42 percent of all new multi-family home sales during the quarter. Notable sales activity occurred at Anthem’s Citizen (Metrotown), the first phase of Gardena by Intracorp (Burquitlam), the North Tower of District Northwest by Thind Properties (Surrey City Centre), Perla by Polygon (Metrotown), and the completed third tower of City of Lougheed by Shape Properties (Lougheed).

The 833 new Low Rise Condominium sales recorded in the Third Quarter of 2023 were 31 percent lower than the previous quarter but 22 percent higher than the number sold in the same quarter last year. Low Rise sales constituted for 31 percent of all new homes sales this quarter. During this period, 14 new projects launched, adding a total of 1,154 units to the market, which contrasts with the 15 new project launches in the previous quarter, releasing 1,464 units. The 2,037 released and unsold units at the end of the Third Quarter represents a 23 percent increase from the previous

quarter. The Central Surrey/North Delta and Langley/Cloverdale market areas experienced the highest number of new Low Rise home sales in Metro Vancouver as they accounted for a combined total of 442 unit sales in the Third Quarter. Notable sales activity across Metro Vancouver’s Low Rise Condominium sector was observed at Village at Sunshine Hills by JPS Developments (North Delta), Whitetail Homes’ Unity (Langley City), the South Village Condos at Latimer Heights by Vesta Properties, the fourth and fifth building of Fleetwood Village II by Dawson + Sawyer (Fleetwood), and City & Laurel by Atterra Development Group (Maple Ridge).

A total of 390 new Townhome sales were recorded in the Third Quarter of 2023, marking a 43 percent decrease from the previous quarter but a 94 percent year-over-year increase. There were 1,065 released and unsold Townhome units at the end of the Third Quarter, a 10 percent increase from the previous quarter and two percent higher than the same quarter last year. The number of new Townhome project launches during the quarter decreased, with only five projects introduced, contributing 156 units to the market.

Positive sales activity was observed at Polygon’s Townhomes at West Wind at Lelem (UBC), Fabric Living’s The Cut (Grandview), the North Phase of Riley Park by Mosaic (Burke Mountain), Union Willoughby by Garcha, and Yorkson Infinity Properties’ Rail District (Central Abbotsford).

OVERALL MARKET SUMMARY Q3 — Resale Market A total of 2,518 newer multifamily homes were resold in the Third Quarter of 2023. This total is 27 percent lower than the previous quarter but is an 18 percent increase compared to the same quarter in 2022. When comparing activity across product sectors, High Rise, Low Rise, and Townhome resales were 22, 30, and 30 percent lower, respectively, when compared to the previous quarter. However, they experienced increases of 38, 42, and 42 percent, respectively, when compared to the same quarter last year. Overall active listings increased by 23 percent when compared to the previous quarter and by 10 percent in comparison to the same quarter last year. Active listings for High Rise, Low Rise, and Townhome products each experienced increases of 29, 12, and 23 percent, respectively, when compared to the Second Quarter of 2023.

Observations and Opinions Of late, the Bank of Canada has held its overnight lending rate at five percent, and provided an admission that fiscal tightening has finally begun to slow down economic activity.

Higher borrowing rates continue to challenge homeowners on a variable mortgage and will further extend further into fixed mortgage holders as rate renewals occur over the next few years.

Higher borrowing costs are also adding significant pressure for developers. Despite the challenges, new multifamily home developments in Metro Vancouver are achieving success in today’s market environment. Some of the most common traits of successful projects include: unique offering (i.e. residential staring on higher floors), well located near transit, priced slightly below competitive offerings and a longer completion timeline. Some projects that are near completion or have a shorter construction timeline have countered that objective by offering lower mortgage or mortgage payment incentives. Despite approximately 1,000 fewer

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new home sales this summer compared to the previous quarter, several new project launches anticipated to start sales soon will likely result in higher sales activity than in the summer quarter. In fact, several Condominium developments have already launched and are reporting strong absorptions including a sell out of the 3 third Condominium offering at AB Wall’s Highstreet Village.

Notable projects that are projected to launch in the Fourth Quarter of 2023 of the First Quarter of 2024 include a diverse line up offerings: Vancouver Downtown - Anthem’s Park, Pinnacle International’s 601 Beach; Vancouver West - Sightline Properties’ Dahlia, Wesgroup’s W16, Listraor’s York, Peterson Group’s Ashleigh Oakridge; Vancouver East - Wesgroup’s Ardea, Bucci’s Entroterra; Burnaby - Ledingham McAllister’s Icon, Ledingham McAllister’s Riviera, Millennium Development’s Etoile Gold, Concord’s Greenhouse, Bosa Properties’ Solhouse 6035, Wesgroup’s Reign; North Shore - Darwin Construction’s Weston Place, SwissReal Group & Brimming Development’s Pierwell; Tri-Cities - Beedie’s Debut, Intracorp’s Gardena (Magnolia), Intergulf’s Burquitlam Park District (Tower 1), The Circadian Group’s Lodana, Townline’s Terrayne; Richmond/South Delta – Polygon’s Tailstar (Aurora); South Surrey/White Rock - Streetside Developments’ The Boroughs: Chelsea, Central Surrey/North Delta - Allure Ventures’ Sky Living, Dawson + Sawyer’s Guildford the Greatest, RDG Management Ltd’s Guilden, Whitetail Homes’ Gabriel, Streetside Developments’ Juno; Langley/Cloverdale - Zenterra’s The Commons, Mortise’s Unison, Zail Properties’ Aviva; Abbotsford/Mission - Westcorp’s Cherryville, AB Wall’s Highstreet Village Phase 3, Mann Group’s Grovemont; Epic Homes’ The Falls (Kanaka Springs), Wood Lock Developments’ Everwood.

New Home Aggregates Q3-2023 High Rise

Low Rise

Townhomes

Total

Total Q3-2023 Sales

1,459

833

390

2,682

Total Inventory

4,962

2,037

1,065

8,064

Standing Inventory

865

169

120

1,154

Total # of Projects

160

101

116

377

Sales Comparison Totals Q3-2023 2021 Sales

2022 Sales

2023 Sales

Change from 2022

High Rise

8,919

7,003

4,413

-37%

Low Rise

5,439

4,045

2,571

-36%

Townhomes

4,278

1,372

1,395

2%

Total

18,636

12,420

8,379

-33%

Resale Market Totals Q3-2023 High Rise

Low Rise

Townhomes

Total

Total Resales

1,095

773

650

2,518

Total Active Listings

1,745

753

728

3,226

HIGH RISE SALES

LOW RISE SALES

TOWNHOME SALES

1,459

833

390

NEW MARKET SUMMARY

VANCOUVER DOWNTOWN The Vancouver Downtown market area has been assigned a “Yellow Light” status for the Third Quarter of 2023, with 30 total sales recorded, a 76 percent decrease from the previous quarter. The significant sales decrease can be attributed to the lack of new inventory and the amount of unsold inventory including completed inventory and select number of sales that did not complete. The market area currently has 77 units of standing inventory. Developers are providing Realtor promotions, GST promotions, and credits up to five percent of the purchase price to push move in ready inventory. The market area continues to see local end-users and international buyers focused on luxury. Despite uncertainties including rumors of collapses and uncertain market conditions, there are still expectations of project launches early in 2024.

Released

Projected

New Market Highlights High Rise

̵

Curv, by Brivia and Henson Group’s 358-unit High Rise achieved 15 sales over the quarter, at an overall blended price of $2,600 per square foot

Low Rise

̵

8x On The Park, by Brenhill, sold four units over the quarter, with just three move-in ready units remaining

Townhome

̵

Onni’s High Rise, 1335 Howe, reported eight sales throughout the quarter, with 61 remaining units that are now move-in ready ̵

West Bank’s High Rise development, 1818 Alberni, achieved three sales over the quarter, with just 21 units remaining ̵

Westbank’s has two High Rise developments in the interior finishing stages of construction and are anticipated to have occupancy by the end of 2023

Locations are approximate

HIGH RISE SALES

30 ↓

LOW RISE SALES

TOWNHOME SALES

0↔

0↔

Active Projects

Unsold Inventory

Active Sales Range ($PSF)

High Rise

15 ↔

295↓

$1,337 - $3,300

Low Rise

—

—

—

Townhome

—

—

—

**Note: The greater variation in active Sales Price Range is the result of the achievable sale value differential between comparable product in the different Downtown neighbourhoods.

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RESALE MARKET SUMMARY

VANCOUVER DOWNTOWN MLS Resale Highlights

MLS Resale Statistics (Product 10 Years of Age or Less)

̵

For High Rise product, the average sales values per square foot have increased by $75 when compared with the Third Quarter of 2022 ̵

The number of High Rise listings has increased from 237 to 250 and High Rise resales increased by eight when compared to the Third Quarter of 2022 ̵

For High Rise Condominiums, the average per square foot values of one bedroom units increased by $103 while two bedroom units decreased by $5 since the Third Quarter of 2022 ̵

The months of supply for resales in the High Rise market has decreased from 11.9 months to 10.3 months when comparing to the same quarter last year ̵

The sales range has increased by $35,100 on the lower end and by $72,388 on the higher-end over the past four quarters for High Rise product ̵

The average time a unit is on the market has increased for High Rise by 24 days when compared to the Third Quarter of 2022

Active Listings

Sold Listings

Active Listings

Monthly Supply

#

%

$PSF

DOM

Active Sales Range (75% of sales)

High Rise

246

10.3

72

99%

$1,430

78

$635,000 - $1,899,900

Low Rise

3

-

-

-

-

-

-

Townhomes

1

3

1

1%

$1,045

403

$875,000

MLS Resale by Unit Type Average Price

$PSF

Average Price

1 Bedroom

2 Bedroom

High Rise

$747,686

$1,392

$1,305,570

$1,333

Low Rise

-

-

-

-

2 Bedroom Townhomes

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$PSF

-

3 Bedroom -

-

-

NEW MARKET SUMMARY

VANCOUVER WEST For the Third Quarter of 2023, Vancouver West receives a “Yellow Light” rating. The market area recorded 176 sales during the quarter, marking a 32 percent decrease from the previous quarter, with an overall absorption rate of 17 percent. Throughout the quarter, there were four project launches releasing 180 units, yet only 29 percent of these units were absorbed. This may be due to the projects launched catering to luxury buyers with high price points, appealing to specific demographics. High Rise properties continue to dominate the sales landscape, accounting for 56 percent of total sales in the market area. Notably, the Low Rise sector experienced a significant boost in sales due to the launch of two new Low Rise projects, resulting in an increase from two sales to 36 sales in the Third Quarter of 2023. Several projects in this market area have temporarily paused sales activity for construction purposes. As these projects near completion, an uptick in activity is expected to surge in the market area.

Released

Projected

High Rise

New Market Highlights

Low Rise

̵

Townhome

Italia, by Solterra released their High Rise in early August and achieved 15 sales with an overall price of $2,000 per square foot ̵

Killarney Group released their Oakridge Low Rise building, Adore 49th in early August and achieved a total of 28 sales at an overall average price of $1,410 per square foot ̵

Ash 28, a project developed by Terra Blanka and Lotus Living Group released their Townhome project in early July and reported three sales at an overall blended price per square foot of $1,690 ̵

Polygon’s UBC High Rise, The Conservatory sold its remaining 13 units in the Third Quarter of 2023 and is now sold out after being on the market for 29 months ̵

The first two towers of Cambie Gardens by Onni are reported to be 80% sold as it achieved 21 sales over the quarter. All the units are move-in ready and are offering incentives of up to $300,000 off ̵

Thesis, developed by Alabaster, was released in early July and reported a total of seven sales at an overall blended price of $1,470 per square foot

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Locations are approximate

HIGH RISE SALES

98 ↓

LOW RISE SALES

36 ↑

TOWNHOME SALES

42 ↓

Active Projects

Unsold Inventory

Active Sales Range ($PSF)

High Rise

36 ↔

600 ↓

$1,188 - $2,899

Low Rise

7↑

116 ↑

$1,242 - $1,560

Townhome

23 ↓

141 ↔

$1,187 - $1,740

RESALE MARKET SUMMARY

VANCOUVER WEST MLS Resale Highlights

MLS Resale Statistics (Product 10 Years of Age or Less)

Total listings and resales have increased by 51 and 34, respectively, when compared to the Third Quarter of 2022 ̵

The average time a unit is on the market has decreased for High Rise and Townhome product by nine and 52 days, respectively, but increased for Low Rise product by eight days when compared to the Third Quarter of 2022 ̵

Average price per square foot sales values for High Rise, Low Rise, and Townhome units have increased over the past four quarters by $22, $58, and $92, respectively Two bedroom High Rise and Low Rise product saw an increase of $60 and $79, respectively, in average price per square foot sales value when compared to four quarters ago The sales range has decreased by $5,000 on the lower end but increased by $55,100 on the higher end when compared to the Third Quarter of 2022 for High Rise product ̵

̵

̵

̵

Active Listings

Sold Listings

Active Listings

Monthly Supply

#

%

$PSF

DOM

Active Sales Range (75 % of sales)

High Rise

253

5.8

132

68%

$1,347

48

$690,000 - $1,610,000

Low Rise

36

4.9

22

11%

$1,186

68

$720,000 - $1,245,000

Townhomes

107

7.8

41

21%

$1,258

51

$1,355,000 - $2,080,000

MLS Resale by Unit Type

The Townhomes sales range has increased by $146,200 on the lower end but decreased by $400,000 on the higher end over the past four quarters

Average Price

$PSF

Average Price

1 Bedroom

2 Bedroom

High Rise

$764,619

$1,323

$1,289,203

$1,348

Low Rise

$708,786

$1,102

$1,097,285

$1,188

2 Bedroom Townhomes

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$PSF

$1,528,422

3 Bedroom $1,238

$1,762,652

$1,267

NEW MARKET SUMMARY

VANCOUVER EAST The Vancouver East market area receives a “Yellow Light” status for the Third Quarter of 2023. This quarter, it reported 151 sales, representing a 33 percent decrease compared to the 226 sales in the Second Quarter of 2023. The overall absorption rate in Vancouver East of 16 percent reflects limited new inventory. The market area experienced only two project launches during the quarter, resulting in a total of 167 units being released. Sales in the High Rise and Low Rise sectors decreased by 41 and 38 percent, respectively. In contrast, the Townhome sector witnessed a 41 percent increase, driven by the success of a newly launched Townhome project. By the end of the quarter, 106 units were move-in ready.

While more projects are expected to launch soon, there have been reports of rising construction costs affecting the launch of future projects and impacting the inventory in the market area.

Released

Market Highlights

High Rise

̵

Chard Development released Earl, a Low Rise and Townhome development in early July, and achieved 30 sales to date at an average price of $1,261 per square foot ̵

The Cut, a Townhome development by Fabric Living achieved a total of 23 sales since starting sales in late June at an overall blended price of $1,182 per square foot ̵

2550 Garden Drive, by Bucci, has 39 move in ready units remaining as they sold five units over the Third Quarter of 2023 and is blending at $1,290 per square foot ̵

Paradigm, Wesgroup’s High Rise in their River District masterplan achieved seven sales over the quarter with only 15 units remaining ̵

Wesgroup is expected to continue expanding their River District masterplan with the release of Ardea, a 204-unit High Rise which is expected to start sales in late Fall 2023 or Winter 2023

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FA L L E D I T I O N 2 0 2 3

Low Rise Townhome Locations are approximate

HIGH RISE SALES

84 ↓

LOW RISE SALES

TOWNHOME SALES

40 ↓

27 ↑

Active Projects

Unsold Inventory

Active Sales Range ($PSF)

High Rise

9↔

385 ↓

$905 - $1,421

Low Rise

14 ↑

288 ↑

$876 - $1,350

Townhome

8↑

102 ↑

$995 - $1,263

RESALE MARKET SUMMARY

VANCOUVER EAST MLS Resale Highlights

MLS Resale Statistics (Product 10 Years of Age or Less)

The average time a unit is on the market has increased for High Rise and Townhome units by six and 21 days, respectively, but decreased for Low Rise units by six days when compared to the Third Quarter of 2022 ̵

Average price per square foot sales values for High Rise and Townhome units decreased by $16 and $5, respectively, while Low Rise units increased by $77 when compared to the Third Quarter of 2022 The months of supply for resales in the Low Rise market has decreased from 4.7 months to 3.4 months when compared to the same quarter last year

̵

̵

̵

The average price per square foot in a Low Rise for a one bedroom and two bedroom unit is up by $81 and $129, respectively, since the Third Quarter of 2022 ̵

Total resales have increased by 47 when compared to the Third Quarter of 2022, while total listings have decreased by one in that same time span ̵

The average price per square foot for a two bedroom and three bedroom Townhome has decreased by $7 and $18, respectively, since the Third Quarter of 2022

Active Listings

Sold Listings

Active Listings

Monthly Supply

#

%

$PSF

DOM

Active Sales Range (75 % of sales)

High Rise

149

4.1

109

63%

$1,119

38

$586,000 - $1,000,000

Low Rise

45

3.4

40

23%

$1,038

34

$580,000 - $953,000

Townhomes

38

4.8

24

14%

$989

58

$1,101,000 - $1,405,000

MLS Resale by Unit Type Average Price

$PSF

Average Price

1 Bedroom

2 Bedroom

High Rise

$646,046

$1,153

$980,302

$1,099

Low Rise

$657,421

$1,076

$871,699

$1,029

2 Bedroom Townhomes

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$PSF

$1,194,725

3 Bedroom $1,024

$1,316,062

$966

NEW MARKET SUMMARY

RICHMOND/SOUTH DELTA The Richmond/South Delta market area has been reclassified as a “Yellow Light” status for the Third Quarter of 2023. Sales saw a significant decline of 66 percent compared to the previous quarter, and only eight percent of total units were absorbed, down from 20 percent in the previous quarter. The decrease in activity can be attributed to the absence of new inventory in the market area, as only 22 new units were released during the quarter. Notably, one Townhome project was launched at $660 per square foot but failed to secure any sales, indicating that buyers are cautious about entering the current market. Despite uncertainties in market conditions, there are expectations of future project launches throughout the year. These launches aim to stimulate more buyer activity in the market area by offering attractive buyer incentives.

Released

Market Highlights

Projected

High Rise

̵

Prima by Anderson Square, a completed High Rise development achieved 21 sales during the quarter at an overall blended price per square foot of $1,184 ̵

Ocean Row, an Aquilini Development project sold 12 units over the quarter at an overall blended price of $820 per square foot as the project is now 50 percent sold ̵

Onward, a 17-unit Townhome development by Kadium Properties achieved six sales at an overall blended price of $1,076 per square foot ̵

Boardwalk 5, a 53-unit Townhome project by Aquilini Development achieved eight sales at an overall blended price of $731 per square foot ̵

Aquilini Development released the next phase of the Boardwalk community, Boardwalk 6, which consists of 22 Townhomes on mid August and is blending at an overall price of $660 per square foot

Low Rise Townhome Locations are approximate

HIGH RISE SALES

26 ↓

LOW RISE SALES

11 ↓

TOWNHOME SALES

42

↓

Active Projects

Unsold Inventory

Active Sales Range ($PSF)

High Rise

17 ↓

587 ↓

$960 - $1,300

Low Rise

5↓

186 ↓

$747 - $999

Townhome

15 ↔

95 ↓

$550 - $1,100

**Note: The greater variation in Active Sales Price Range is the result of the achievable sale value differential between comparable product in Richmond and South Delta

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RESALE MARKET SUMMARY

RICHMOND/SOUTH DELTA MLS Resale Highlights

MLS Resale Statistics (Product 10 Years of Age or Less)

Total resales have increased from 199 to 297 when compared to the Third Quarter of 2022 ̵

The High Rise sales range has increased by $10,000 on the lower end but decreased by $60,000 on the higher-end when compared to the same quarter in 2022 ̵

The sales range of Townhomes increased by $81,900 on the lower end and by $235,000 on the higher-end when compared to the Third Quarter of 2022 ̵

̵

̵

Average per square foot sales values of High Rise, Low Rise, and Townhome units increased by $72, $19, and $34, respectively, when compared to four quarters ago

̵

Price per square foot sales values for one bedroom High Rise and Low Rise units have increased by $54 and $14, respectively, over the past four quarters

Active Listings

Sold Listings

Active Listings

Monthly Supply

#

%

$PSF

DOM

Active Sales Range (75 % of sales)

High Rise

230

4.8

144

48%

$1,069

54

$630,000 - $1,170,000

Low Rise

57

2.4

71

24%

$872

32

$555,000 - $880,000

Townhomes

93

3.4

82

28%

$804

51

$869,900 - $1,555,000

MLS Resale by Unit Type

The average sales price of a two bedroom and three bedroom Townhome increased by $64,042 and $97,795, respectively, since the Third Quarter of 2022

Average Price

$PSF

Average Price

1 Bedroom

2 Bedroom

High Rise

$674,240

$1,096

$945,057

$1,044

Low Rise

$561,786

$912

$768,349

$849

2 Bedroom Townhome

13 THE FIFTH DIMENSION

FA L L E D I T I O N 2 0 2 3

$PSF

$913,042

3 Bedroom $754

$1,182,895

$835

NEW MARKET SUMMARY

BURNABY/NEW WESTMINSTER The Burnaby/New Westminster market area has been designated a “Green Light” status for the Third Quarter of 2023. During this period, the market area saw a remarkable increase in sales, totaling 654, which represents a substantial 98 percent surge from the previous quarter. This surge in sales can be primarily attributed to the introduction of new projects, particularly in the High Rise sector. Notably, the City of Burnaby witnessed the launch of two new High Rise developments, releasing 613 new High Rise units with a 45 percent absorption rate. The High Rise sector remained the most sought-after, accounting for 93 percent of all sales. Developers proactively provided incentives to expedite inventory movement, resulting in the complete sell-out of five High Rise developments throughout the quarter.

In the Third Quarter of 2023, the market area absorbed 28 percent of its total inventory, marking an increase from the 16 percent absorption rate in the previous quarter.

Released

Market Highlights

High Rise

̵

Shape’s, City of Lougheed Tower 3 was launched in late July as a completed project and recorded 48 sales over the Third Quarter of 2023 with Tower 1 & 2 selling out its remaining move-in ready inventory ̵

Citizen, Anthem’s newest Metrotown High Rise was released in Q3-2023 and recorded the most sales in the High Rise sector with 225 sales over the quarter at an overall blended price of $1,370 per square foot ̵

Ledingham McAllister’s Low Rise, Cedar Creek (Signature Collection), led all sales in this sector with 23 sales at an overall price per square foot of $940 ̵

Perla by Polygon sold 51 units over the quarter and is blending at an average price of $1,245 per square foot ̵

Portside by Anthem sold its final two units over the quarter and sold out after being on the market for 34 months ̵

Numerous High Rise developments are expected to release over Q4-2023 which includes Greenhouse

by Concord, Etolie Gold by Millenium, Solhouse 6035 by Bosa Properties and Reign by Wesgroup

14 THE FIFTH DIMENSION

Projected

FA L L E D I T I O N 2 0 2 3

Low Rise Townhome Locations are approximate

HIGH RISE SALES

611 ↑

LOW RISE SALES

27 ↓

TOWNHOME SALES

16 ↓

Active Projects

Unsold Inventory

Active Sales Range ($PSF)

High Rise

32 ↓

1440 ↓

$755 - $1,464

Low Rise

7↓

175 ↓

$750 -$971

Townhome

5↑

57 ↑

$650 - $1,025

RESALE MARKET SUMMARY

BURNABY/NEW WESTMINSTER MLS Resale Highlights

MLS Resale Statistics (Product 10 Years of Age or Less)

Total listings and resales have increased by 133 and 84, respectively, when compared to the Third Quarter of 2022 ̵

The average per square foot sales values of High Rise, Low Rise, and Townhome units increased by $51, $60, and $18, respectively, when compared to the Third Quarter of 2022 ̵

The sales range of High Rise product increased by $32,500 on the lower end and by $134,900 on the higher-end when compared to the Third Quarter of 2022 ̵

̵

Compared to the Third Quarter of 2022, the average price per square foot of one bedroom High Rise and Low Rise product has increased by $16 and $51, respectively ̵

The average price per square foot of a two bedroom High Rise and Low Rise unit increased by $63 and $82, respectively, over the past year ̵

The average sales price of a two bedroom and three bedroom Townhome has increased by $76,067 and $61,583, respectively, when compared to the Third Quarter of 2022

Active Listings

Sold Listings

Active Listings

Monthly Supply

#

%

$PSF

DOM

Active Sales Range (75 % of sales)

High Rise

393

3.9

300

76%

$1,095

42

$615,000 - $1,104,900

Low Rise

42

2.1

61

15%

$900

36

$535,000 - $819,900

Townhome

41

3.6

34

9%

$809

40

$935,000 - $1,498,000

MLS Resale by Unit Type Average Price

$PSF

Average Price

1 Bedroom

2 Bedroom

High Rise

$641,909

$1,118

$938,754

$1,069

Low Rise

$569,567

$931

$773,963

$889

2 Bedroom Townhome

15 THE FIFTH DIMENSION

FA L L E D I T I O N 2 0 2 3

$PSF

$991,000

3 Bedroom $809

$1,110,838

$768

NEW MARKET SUMMARY

NORTH SHORE The North Shore market area maintains its “Green Light” status for the Third Quarter of 2023, exceeding the previous quarters sales activity with a 72 percent overall sales increase. The High Rise sector drove sales activity, surging from 19 sales in the preceding quarter to 77 sales in the Third Quarter of 2023.

The Low Rise sector posted a substantial 61 percent increase in sales, driven by the successful launch of a newly introduced Low Rise project. This development brought 39 units to the market, achieving an 85 percent absorption rate. Buyer activity in this market area has primarily been attributed to local end users either downsizing from single family homes or upsizing as they start families. The Low Rise sector led all product types with an absorption rate of 43 percent compared to the High Rise sector at 23 percent and Townhomes at 21 percent, resulting in an overall absorption rate of 26 percent for the quarter. With limited inventory being released into the market, absorptions continue to be strong for newly launched projects due to lack of new supply.

Released

Projected

High Rise

Market Highlights

Low Rise

̵

Westbank’s Horseshoe Bay, led all sales in the High Rise sector with 29 sales over the Third Quarter of 2023 and now has only 20 units remaining ̵

Elle, a 22-storey 136-unit High Rise by Polygon launched in mid September and achieved 28 sales at an overall price per square foot of $1,515 ̵

Fairborne Homes’ Ashton, released 39 units of its 140-unit development in late July, achieving 33 sales at a blended price per square foot of $1,115 ̵

Polygon’s Lennox, followed Ashton in the Low Rise sector with four sales over the quarter and now only has five units remaining ̵

Towns at Lynn by Mosaic Homes led sales in the Townhome sector with seven sales over the quarter and now has 16 units remaining ̵

Weston Place by Darwin is launching in early Q4-2023 with homes starting from $1,367,900

Townhome Locations are approximate

HIGH RISE SALES

77 ↑

LOW RISE SALES

37 ↑

TOWNHOME SALES

15 ↓

Active Projects

Unsold Inventory

Active Sales Range ($PSF)

High Rise

13 ↑

260 ↑

$1,028 - $2,300

Low Rise

5↑

49 ↑

$992 - $1,260

Townhome

6↔

56 ↑

$813 - $1,110

*Note that the large sales range is due to the price differences observed in West and North Vancouver.

16 THE FIFTH DIMENSION

FA L L E D I T I O N 2 0 2 3

RESALE MARKET SUMMARY

NORTH SHORE MLS Resale Highlights

MLS Resale Statistics (Product 10 Years of Age or Less)

̵

There were 162 total listings, a decrease by 12 when compared to the Third Quarter of 2022 ̵

Compared to the Third Quarter of 2022, the average time a unit is on the market has increased for High Rise units by six days while Low Rise and Townhome units decreased by 10 and 17 days, respectively ̵

The average per square foot sales values for High Rise, Low Rise and Townhome units increased by $126, $70, and $82, respectively, when compared to the Third Quarter of 2022 ̵

The sales range increased by $21,000 on the lower-end and by $8,100 on the upper-end for Low Rise product since four quarters ago ̵

Two bedroom High Rise and Low Rise product increased in per square foot sales value by $71 and $38 when compared to the Third Quarter of 2022 ̵

The average sales price of two bedroom Townhome decreased by $27,189 while it increased by $202,408 for a three bedroom Townhome when compared to the Third Quarter of 2022

Active Listings

Sold Listings

Active Listings

Monthly Supply

#

%

$PSF

DOM

Active Sales Range (75 % of sales)

High Rise

106

4.4

72

45%

$1,325

53

$699,000 - $2,100,000

Low Rise

15

0.8

60

37%

$1,064

16

$670,000 - $1,099,000

Townhome

41

4.2

29

18%

$1,010

23

$1,075,000 - $1,690,000

MLS Resale by Unit Type Average Price

$PSF

Average Price

1 Bedroom

2 Bedroom

High Rise

$778,713

$1,237

$1,305,028

$1,315

Low Rise

$700,467

$1,092

$944,986

$1,032

2 Bedroom Townhome

17 THE FIFTH DIMENSION

FA L L E D I T I O N 2 0 2 3

$PSF

$1,165,311

3 Bedroom $1,047

$1,600,700

$1,007

NEW MARKET SUMMARY

TRI-CITIES The Tri-Cities market area has been given a “Yellow Light” status for the Third Quarter of 2023. The market area experienced a 46 percent decline in total sales compared to the preceding quarter. The six new projects released in the Second Quarter of 2023 drove sales significantly in contrast to the absence of any new launches in the Third Quarter of 2023. Despite the decline in overall sales, absorption rates remained robust. The High Rise sector led all product types with a 35 percent absorption rate, followed

by Townhomes at 26 percent, and the Low Rise sector at 25 percent, resulting in an overall absorption rate of 32 percent for the quarter. The High Rise sector dominated sales activity, contributing to 76 percent of total sales, while the Low Rise sector and Townhomes accounted for 15 percent and nine percent, respectively. Although there has been a decline in overall sales from the previous quarter, the outlook for this market area remains optimistic, with expectations of numerous new projects to be launched in the Fourth Quarter of 2023 and First Quarter of 2024.

Released

Projected

High Rise

New Market Highlights

Low Rise

̵

Lotus at Gardena, the first Phase of Intracorp’s Burquitlam masterplan, led all product types with 95 sales over the Third Quarter of 2023. Due to the success of the first phase, the second High Rise of the masterplan, Magnolia, is anticipated to launch in early Q4-2023 ̵

Elements, a 27-storey 151-unit High Rise by Pacific Property Group & Baydo Development Corp. achieved 67 total sales at an overall price per square foot of $1,150 since launching in April 2023 ̵

Canada West Group’s Aavand led all Low Rise projects with 20 sales over the Third Quarter of 2023 ̵

Townline’s Terrayne, a 159-unit Townhome project started sales in late September and is releasing 159 new townhomes into the market in early Q4-2023 ̵

Arcadia, a 6-storey 120-unit Low Rise project, by Quantum Properties is launching in early Q42023 with homes starting from $499,900

18 THE FIFTH DIMENSION

FA L L E D I T I O N 2 0 2 3

Townhome Locations are approximate

HIGH RISE SALES

322 ↓

LOW RISE SALES

66 ↓

TOWNHOME SALES

38 ↓

Active Projects

Unsold Inventory

Active Sales Range ($PSF)

High Rise

22 ↔

588 ↓

$830 - $1,203

Low Rise

17 ↓

193 ↓

$671 - $1,100

Townhome

9↑

108 ↓

$732 - $950

RESALE MARKET SUMMARY

TRI-CITIES MLS Resale Highlights

MLS Resale Statistics (Product 10 Years of Age or Less)

̵

Compared to the Third Quarter of 2022, sales increased for High Rise, Low Rise and Townhome products by 53, 22, and 19, respectively ̵

Total listings have decreased by nine when compared to the same period last year ̵

The average sales value per square foot for High Rise, Low Rise, and Townhomes have increased by $37, $28, and $47, respectively, when compared to the Third Quarter of 2022 ̵

The lower end sales range for High Rise and Low Rise units has decreased by $2,000 and $15,000, respectively, while it increased by $60,000 for Townhomes when compared to the same quarter last year ̵

The average price per square foot of a one bedroom High Rise and Low Rise unit has increased by $46 and $18, respectively, when compared to the Third Quarter of 2022 ̵

The average sales price of a two and three bedroom Townhome increased by $52,750 and $114,848, respectively, when compared to the Third Quarter of 2022

Active Listings

Sold Listings

Active Listings

Monthly Supply

#

%

$PSF

DOM

Active Sales Range (75 % of sales)

High Rise

119

2.9

125

41%

$1,008

35

$578,000 - $962,900

Low Rise

70

1.8

116

38%

$882

27

$545,000 - $818,000

Townhome

49

2.4

62

20%

$767

25

$950,000 - $1,420,000

MLS Resale by Unit Type Average Price

$PSF

Average Price

1 Bedroom

2 Bedroom

High Rise

$605,880

$1,074

$828,140

$962

Low Rise

$558,576

$914

$744,149

$864

2 Bedroom Townhome

19 THE FIFTH DIMENSION

FA L L E D I T I O N 2 0 2 3

$PSF

$933,550

3 Bedroom $835

$1,149,603

$783

NEW MARKET SUMMARY

RIDGE MEADOWS The Ridge Meadows market area has received a “Green Light” for the Third Quarter of 2023, driven by a notable upswing in sales compared to the Second Quarter of the same year. The notable success of this market area, with a total of 83 sales, can be predominantly credited to the launch of two Low Rise projects and one Townhome project during the Third Quarter of 2023, collectively accounting for an impressive 83 percent of all sales in the market area. The increase in sales activity displays strong absorption capacity when new inventory is released into the market. Many active projects in this market area continue to keep their sales campaigns on pause as they wait to release their remaining unsold inventory in early 2024, coinciding with construction completion. Overall sales in the Townhome sector jumped from four total sales in the previous quarter to 17 total sales in the Third Quarter of 2023. The Low Rise sector experienced a 14 percent increase in sales, contributing to a 34 percent overall increase in sales from the previous quarter.

Released

Projected

High Rise

Market Highlights ̵

Low Rise

City and Laurel, a 6-storey 100-unit Low Rise by Alterra Development Group launched in early September and achieved 50 sales at a blended price per square foot of $783 Kennedy, Royale Properties 29-unit townhome project released the remaining 11 units and sold 10 units over the quarter at a blended price per square foot of $550, leaving one unit remaining in the development ̵

Falcon Homes’ 67-unit Low Rise Condominium project The North at Point Haney launched in midSeptember, achieving 13 sales at an average price per square foot of $800 ̵

Gatehouse Design + Developments’ Windfall sold one unit over the quarter at an overall price per square foot of $516 leaving three units remaining in the project ̵

Raicon’s 61-unit townhome project Rydge launched in early September and sold 6 units at an overall price per square foot of $550 ̵

̵

Atterra Development Group’s Sierra Ridge (Buildings 1 & 2) sold the remaining 3 units over the quarter at an overall price per square foot of $589 and is now sold out

20 THE FIFTH DIMENSION

FA L L E D I T I O N 2 0 2 3

Townhome Locations are approximate

HIGH RISE SALES

-

LOW RISE SALES

66 ↑

TOWNHOME SALES

17 ↓

Active Projects

Unsold Inventory

Active Sales Range ($PSF)

High Rise

-

-

-

Low Rise

7↑

241 ↑

$589 - $829

Townhome

8↑

94 ↑

$516 - $744

RESALE MARKET SUMMARY

RIDGE MEADOWS MLS Resale Highlights

MLS Resale Statistics (Product 10 Years of Age or Less)

̵

Total listings and resales have increased by 42 and 11, respectively, when compared to the Third Quarter of 2022 ̵

The average sales value per square foot for Low Rise units and Townhomes increased by $3 and $41 since the same quarter last year ̵

The average sales price of a one bedroom Low Rise unit increased by $36,979 but it decreased by $14,419 for a two bedroom Low Rise unit when compared to the same quarter last year ̵

The lower bound of the sales range for Low Rise products increased by $44,000 but the upper bound decreased by $12,000 compared to the same period last year ̵

The sales range has increased by $79,900 on the lower end and by $20,000 on the higher-end over the past four quarters for Townhomes ̵

Three bedroom Townhome units saw a decrease in average price on sold units by $69,523 over the past year

Active Listings

Sold Listings

Active Listings

Monthly Supply

#

%

$PSF

DOM

Active Sales Range (75 % of sales)

High Rise

-

-

-

-

-

-

-

Low Rise

80

6.3

38

46%

$687

39

$484,900 - $650,000

Townhome

39

2.6

45

54%

$580

28

$799,900 - $965,000

MLS Resale by Unit Type Average Price

$PSF

Average Price

1 Bedroom

2 Bedroom

High Rise

-

-

-

-

Low Rise

$498,193

$724

$596,118

$659

2 Bedroom Townhome

21 THE FIFTH DIMENSION

FA L L E D I T I O N 2 0 2 3

$PSF

-

3 Bedroom -

$861,861

$590

NEW MARKET SUMMARY

SURREY CENTRAL/NORTH DELTA The Central Surrey & North Delta market area is assigned a “Yellow Light” status for the Third Quarter of 2023, reporting 475 sales, marking a 46 percent decrease compared to the previous quarter. The market area faced a decrease in newly released inventory, with only two project launches totaling 127 units released during the quarter. Across all product types, sales have declined significantly: 61 percent in High Rise Condominiums, 23 percent in Low Rise Condominiums, and 46 percent in Townhomes. The Townhome sector, in particular, has been affected by a lack of inventory, with no new project launches in the past three quarters. The overall absorption rate for the market area stands at 31 percent. To stimulate buyer activity, developers have been offering more attractive deposit structures as incentives.

However, it’s anticipated that sales activity will rebound in the upcoming quarter as market conditions become clearer, allowing developers to release more inventory into the market area.

Released

Projected

High Rise

Market Highlights

Low Rise

̵

JPS Developments released a Low Rise building in North Delta, Village at Sunshine Hills in early September and sold all 90 units in less than a month at an overall blended price of $885 per square foot ̵

Porte Communities expands their Hartley community in Surrey Central with the release of its third building, Cedar, in early September and achieved a total of 22 sales at an average price of $860 per square foot ̵

ML Emporio Properties’ High Rise, Sequoia led all High Rise sales with 67 sales over the Third Quarter of 2023 ̵

The north tower of District Northwest by Thind Properties achieved a total of 50 sales over the quarter at an overall blended price of $1,130 per square foot ̵

The fourth and fifth buildings of Fleetwood Village II achieved a total of 70 sales over the quarter ̵

One Central by Aoyuan International in Surrey Central has 40 move-in ready units available at the end of the quarter as it achieved 10 sales over the Third Quarter of 2023

22 THE FIFTH DIMENSION

FA L L E D I T I O N 2 0 2 3

Townhome Locations are approximate

HIGH RISE SALES

117 ↓

LOW RISE SALES

249 ↓

TOWNHOME SALES

49 ↓

Active Projects

Unsold Inventory

Active Sales Range ($PSF)

High Rise

10 ↓

696 ↓

$829 - $1,130

Low Rise

16 ↑

253 ↓

$581 - $1,014

Townhome

14 ↓

121 ↑

$585 - $926

RESALE MARKET SUMMARY

SURREY CENTRAL/NORTH DELTA MLS Resale Highlights

MLS Resale Statistics (Product 10 Years of Age or Less)

Total listings and resales increased by 145 and 102, respectively, when compared to the Third Quarter of 2022 ̵

The months of supply for resales in the Townhouse market has decreased from 6.8 months to 4.7 months when compared to the same quarter last year ̵

The months of supply for resales for High Rise and Low Rise product has increased by 1.2 and 0.2 months, respectively, when compared to the Third Quarter of 2022 ̵

̵

̵

The per square foot sales value has increased for High Rise and Townhome units by $55 and $26, respectively, while Low Rise units decreased by $1 when compared to four quarters ago

̵

One bedroom High Rise units saw an increase in average price per square foot on sold units by $41 but decreased by $19 for one bedroom Low Rise units over the year

Active Listings

Sold Listings

Active Listings

Monthly Supply

#

%

$PSF

DOM

Active Sales Range (75 % of sales)

High Rise

191

4.7

121

38%

$945

42

$385,000 - $655,000

Low Rise

170

4.9

105

33%

$776

35

$450,000 - $688,000

Townhome

138

4.7

89

28%

$593

32

$820,000 - $1,103,000

MLS Resale by Unit Type

The average two bedroom Townhome saw an average price decrease of $57,800 while a three bedroom Townhome increased by $47,834 when compared to the same period last year

Average Price

$PSF

Average Price

1 Bedroom

2 Bedroom

High Rise

$498,621

$980

$648,908

$853

Low Rise

$471,030

$797

$629,671

$761

2 Bedroom Townhome

23 THE FIFTH DIMENSION

FA L L E D I T I O N 2 0 2 3

$PSF

$743,800

3 Bedroom $621

$917,799

$607

NEW MARKET SUMMARY

SOUTH SURREY/WHITE ROCK The South Surrey/White Rock market area is being narrowly avoided a downgrade from a “Green Light” status for the Third Quarter of 2023. A total of 64 sales were recorded, representing a 39 percent decrease from the Second Quarter of 2023. Both the Low Rise and Townhome sectors saw significant sales drops of 88 percent and 57 percent, respectively. This decline can be attributed to the absence of new inventory in the market area, as no new projects were introduced during the Third Quarter of 2023. Thus the retention of status. However, the High Rise sector experienced a remarkable 240 percent increase in sales driven by sales volume at Landmark Premiere Properties, Landmark Tower, the concluding tower of Foster Martin. It’s worth noting that 94 percent of total sales in this sector came from a recently released project. During the Third Quarter of 2023, the market area absorbed 22 percent of its total inventory, in contrast to the 37 percent absorption rate in the previous quarter.

Ground-oriented product types remain highly favored in South Surrey/White Rock, with the majority of purchasers being end-users.

Released

Projected

High Rise Low Rise

Market Highlights Townhome

Gramercy Development’s Townhome Development, The Loop, recorded nine sales over the quarter while increasing its pricing by $4 to an overall value of $671 per square foot ̵

King + Crescent (Cedar), the final Low Rise building of King + Crescent by Zenterra, recorded four new sales over the quarter, blending at an overall average of $840 per square foot ̵

Landmark Premiere Properties third tower of Foster Martin, a 128-unit High Rise called The Landmark achieved 32 sales with an overall price per square foot of $1,234 ̵

̵

The Boroughs (Phase 2) – Bexley, by Streetside Developments, achieved 11 sales over the quarter with a price per square foot of $709

24 THE FIFTH DIMENSION

FA L L E D I T I O N 2 0 2 3

Locations are approximate

HIGH RISE SALES

34 ↑

LOW RISE SALES

4↓

TOWNHOME SALES

26 ↓

Active Projects

Unsold Inventory

Active Sales Range ($PSF)

High Rise

6↔

97 ↑

$940 - $1,234

Low Rise

4↔

86 ↓

$816 - $913

Townhome

5↔

50 ↓

$671 - $709

RESALE MARKET SUMMARY

SOUTH SURREY/WHITE ROCK MLS Resale Highlights

MLS Resale Statistics (Product 10 Years of Age or Less)

When compared to the same quarter last year, the total number of listings and resales increased by 13 and 29, respectively ̵

The months of supply for resales for High Rise and Low Rise product has increased by 0.8 and 1.0 months, respectively, while Townhomes decreased by 1.6 when compared to the Third Quarter of 2022 ̵

Average per square foot sale values for High Rise and Low Rise units decreased by $32 and $7, respectively, when compared to the Third Quarter of 2022 ̵

̵

High Rise products have seen an increase in average days spent on the market, averaging 11 more days on the market while Low Rise products saw a decrease of eight days when compared to the Third Quarter of 2022 ̵

One and two bedroom Low Rise units saw an increase in average price per square foot on sold units by $10 and $4, respectively, over the past year ̵

Two bedroom townhomes saw a decrease in average sales price by $48,620 while it increased by $37,052 for three bedroom Townhomes when compared to the same quarter last year

Active Listings

Sold Listings

Active Listings

Monthly Supply

#

%

$PSF

DOM

Active Sales Range (75 % of sales)

High Rise

53

9.4

17

14%

$950

61

$735,000 - $1,318,000

Low Rise

31

3.3

28

23%

$767

18

$580,000 - $921,000

Townhome

63

2.4

78

63%

$619

25

$825,000 - $1,225,000

MLS Resale by Unit Type Average Price

$PSF

Average Price

1 Bedroom

2 Bedroom

High Rise

$717,500

$938

$1,035,145

$960

Low Rise

$550,875

$870

$722,081

$747

2 Bedroom Townhome

25 THE FIFTH DIMENSION

FA L L E D I T I O N 2 0 2 3

$PSF

$867,209

3 Bedroom $639

$983,818

$646

NEW MARKET SUMMARY

LANGLEY/CLOVERDALE The Langley/Cloverdale market area has been given a “Yellow Light” status for the Third Quarter of 2023. A total of 255 sales were reported, marking a slight decrease from the 274 sales in the preceding quarter. Notably, sales activity in the Low Rise sector experienced an eight percent increase from the previous quarter, constituting a significant 76 percent of total sales by product type for the Third Quarter of 2023. Townhomes represented the remaining 24 percent of total sales, with the High Rise sector showing no sales activity throughout the quarter. Over the quarter, there were three new Low Rise projects launched, introducing a total of 367 units to the market. Absorption rates remained robust in the Low Rise and Townhome sectors, standing at 36 percent and 33 percent, respectively. These figures showcased strong demand for these product types at more affordable price points in contrast to market areas located North of the Fraser River. Buyer interest continued to be prevalent for more affordable product within the Townhome sector over the Third Quarter of 2023.

Released

Projected

High Rise

Market Highlights

Low Rise

̵

Vera, a 6-storey 68-unit wood-frame development by Anxin Projects, launched in early July and sold 20 units at a blended price per square foot of $875 ̵

Urban Coast Developments Ltd.’s Spring Hill, a 6-storey 113-unit Low Rise project launched in early September and achieved 25 sales at an overall price per square foot of $820 ̵

Zenterra’s 6-storey 199-unit wood frame project The Commons is coming to market with homes starting from $439,990 ̵

Latimer South Village Condos, the final remaining homes of the Latimer Village masterplan by Vesta Properties launched in early August, achieving 71 sales at a blended price per square foot of $802 ̵

Garcha’s Union Willoughby led all Townhomes with 26 sales over the quarter of 2023 and now only has three units remaining ̵

Unison, a Low Rise project by Mortise Group of Companies is expected to launch in late October bringing 178 units to market

26 THE FIFTH DIMENSION

FA L L E D I T I O N 2 0 2 3

Townhome Locations are approximate

HIGH RISE SALES

LOW RISE SALES

TOWNHOME SALES

193 ↑

62 ↓

Active Projects

Unsold Inventory

Active Sales Range ($PSF)

High Rise

1↔

14 ↔

$975

Low Rise

11 ↑

346 ↑

$789 - $925

Townhome

10 ↓

127 ↓

$456 - $748

0

RESALE MARKET SUMMARY

LANGLEY/CLOVERDALE MLS Resale Highlights

MLS Resale Statistics (Product 10 Years of Age or Less)

̵

Resales for Low Rise and Townhome products increased by 89 and 30, respectively, when compared to the Third Quarter of 2022 ̵

Total listings decreased by 50 when compared to the same quarter last year ̵

The sales range increased by $40,000 on the lower-end and by $7,900 on the upper-end for Townhome product since four quarters ago ̵

Average price per square foot sales values increased for Low Rise Condominiums and Townhomes by $27 and $46, respectively, when compared to this quarter last year ̵

The average price per square foot sales value for a one and two bedroom Low Rise unit increased by $59 and $17, respectively, when compared to the Third Quarter of 2022 ̵

Since the Third Quarter of 2022, the months of supply for Townhome product has decreased from 3.4 months to 1.8 months

Active Listings

Sold Listings

Active Listings

Monthly Supply

#

%

$PSF

DOM

Active Sales Range (75 % of sales)

High Rise

-

-

-

-

-

-

-

Low Rise

158

2.6

179

59%

$749

28

$490,000 - $779,999

Townhome

76

1.8

125

41%

$605

20

$790,000 - $997,900

MLS Resale by Unit Type Average Price

$PSF

Average Price

1 Bedroom

2 Bedroom

High Rise

-

-

-

-

Low Rise

$495,360

$815

$655,277

$729

2 Bedroom Townhome

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$PSF

$800,940

3 Bedroom $632

$898,670

$600

NEW MARKET SUMMARY

ABBOTSFORD/MISSION The Abbotsford/Mission market area will retain its “Green Light” status for the Second Quarter of 2023.

The market area experienced a 29 percent increase in total sales. Buyer activity primarily occurred in the Low Rise sector, accounting for 116 total sales. This marked a 63 percent increase from the previous Quarter and accounted for 74 percent of total sales this quarter. One project launched over the Second Quarter of 2023, releasing 48 units into the market and achieved an 85 percent absorption rate. The Townhome sector maintained a steady buyer’s activity with 40 total sales. The Low Rise and Townhome sectors experienced strong absorptions at 72 and 69 percent respectively. The low-entry price points have attracted many first-time home buyers and end users migrating from the Tri-Cities, Surrey, & Langley. Buyer interest is expected to remain robust with numerous upcoming project launches and the subsequent release of additional inventory into the market.

Released

Market Highlights ̵

High Rise

The City of Mission saw a new Low Rise development released with the launch of Silver & Cedar by Redekop Faye. The project achieved a total of 33 sales over the quarter at an overall blended price of $780 per square foot ̵

An additional 65 Townhomes has been released in the Rail District masterplan by Infinity Properties which saw 46 absorbed over the quarter at an average price of $560 per square foot ̵

Infinity Properties also released the first Low Rise building at Rail District with The Mason and achieved a total 35 sales at an overall blended price of $690 per square foot ̵

Laurel at Mill Lake by Heinrichs Developments is a Low Rise development in Abbotsford that started sales in late July and is blending at $750 per square foot ̵

AB Wall is expected to continue expanding the Highstreet Village community with the release of its third Low Rise building in the Fourth Quarter of 2023

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Low Rise Townhome Locations are approximate

HIGH RISE SALES

-

LOW RISE SALES

TOWNHOME SALES

82 ↓

61 ↑

Active Projects

Unsold Inventory

Active Sales Range ($PSF)

High Rise

-

-

-

Low Rise

7↑

104 ↑

$662 - $780

Townhome

8↑

57 ↑

$297 - $579

RESALE MARKET SUMMARY

ABBOTSFORD/MISSION MLS Resale Highlights

MLS Resale Statistics (Product 10 Years of Age or Less)

Total listings decreased by 32 while total resales increased by 46 when compared to the Third Quarter of 2022 ̵

Over the past four quarters, the lower bound of the sales range for Low Rise product has decreased by $24,900 and by $32,900 on the upper bound ̵

Price per square foot sales values for Low Rise Condominiums and Townhomes are up by $49 and $41, respectively, from the Third Quarter of 2022 ̵

̵

̵

The average days spent on market for Low Rise units increased by four days while it decreased by 21 days for Townhomes when compared to the same quarter last year

̵

The average Low Rise price per square foot for one and two bedroom Condominiums has increased by $81 and $19, respectively, when compared to the same quarter in 2022

Active Listings

Sold Listings

Active Listings

Monthly Supply

#

%

$PSF

DOM

Active Sales Range (75 % of sales)

High Rise

5

5.0

3

3%

$827

39

$809,000 - $1,299,900

Low Rise

46

2.6

53

55%

$641

41

$400,000 - $622,400

Townhome

42

3.2

40

42%

$504

36

$640,000 - $849,999

MLS Resale by Unit Type

The average price per square foot for two bedroom and three bedroom Townhome has increased by $67 and $23, respectively, when compared to the Third Quarter of 2022

Average Price

$PSF

Average Price

1 Bedroom

2 Bedroom

High Rise

-

-

$807,500

$780

Low Rise

$415,990

$676

$548,415

$620

2 Bedroom Townhome

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$PSF

$651,318

3 Bedroom $550

$731,065

$514

LOOKING BACK & AHEAD As the third quarter comes to a close, we have experienced a blustery whirlwind of changes. The silver lining is that despite all this and despite this quarter’s sales dipping 28 percent compared to last quarter, sales absorptions are still up 70 percent compared to this time last year providing us with a cautious sense of optimism once the holiday season passes and as we continue to adapt as an industry to new legislation at every level and rising interest rates.

Looking Ahead

Looking Back

The usual winter sales decline will most likely pewter out with the typical holiday/winter incentives for actively selling developments, with the majority closing early for the holiday season with stronger hopes for the new year. Especially if the Bank of Canada increases rates again in early December. That said if inflation continues on a downward trend in to 2024 rates would then be able to follow suit relieving some pressure on both sides of the developer buyer equation.

In the last issue, we focused on how we thought the 47 municipalities named by the Provincial Government would tackle reaching their housing targets. Specifically, if more cities would remove the redundant public hearing typically required for new developments even if the development application confirms to the Official Community and/or Neighbourhood plan already voted on by the public.

In discussions with most cities in the Fraser Valley and Metro Vancouver it appears many have already moved or have started to move in this direction. There are a few that seem to want to wait and watch what others do first, which will give those less time to enact on the same to meet their housing targets while this extra unnecessary step continues as well as the costs to do so. Cities that are already enacting this will have the advantage over those that don’t or enact at a later time.

It is important to note that this does not mean there would not be any public hearings for development applications, but they would only be required if a development application is not conforming to the plan already discussed and voted on by the public to create the official community and neighbourhood plans in the first place to vote if the change to the plan should be approved or not, which makes a lot more sense than the waste of time seen in the current process voting on applications that meet the plan’s requirements as already voted on.

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As we look forward to the final quarter and the concluding chapter of 2023, we do expect further moderate decline in new home sales activity.

However, we do not see prices adjusting up or down in any significant manner given the pressures of cost increases on construction and the end consumers’ cost to borrow.

We also see those cities that have already taken the risk of implementing change for better efficiency in the approval process making at least 75% of their provincial housing targets within the mandated time lines, as long as the development costs do not increase too much and rates start to decline at some point in 2024.

Those cities still sitting on the fence with a wait and see attitude are already behind and are the cities that are least likely to make their housing targets within the mandated period, by waiting to make major changes to their process and proceeding with little baby steps is setting them back on the timelines given by the provincial government.

As we head into the holiday season our internal dialogue continues including these questions we are asking ourselves: Speaking of supply…. more of these cities will be in the headlines as they move swiftly to change their overall processes to meet their Provincial housing targets. Who will move first?

Which city will reach their target first, or will any reach their targets?

How do you think the City’s waiting to watch and see what the rest do first will catch up? Will they even be able to catch up?

What changes we will they need to enact to catch up to those that carve the path of new public processes?

What can we expect with respect to interest rates and inflation heading into a New Year?

Will the Bank of Canada increase rates again just before the holiday the season? How will this affect today’s home buyer? When in 2024 will the tide turn the other way?

If you have a view you would like to share and/or questions you would like to discuss please contact Jamie Squires at Jamie@fifthave.ca.

RESEARCH METHODOLOGY WHY ZONDA URBAN? Zonda Urban is Metropolitan Vancouver’s leading source for analytical interpretation of relevant real estate market data, trends and strategic recommendations.

Zonda Urban (formerly Urban Analytics) has been retained by Fifth Avenue Real Estate Marketing Ltd. To provide aggregate data on the Multi-family residential real estate market in the Vancouver Metropolitan. The methodology used to collect the data was as follows: General Parameters Metropolitan Vancouver refers to the area from West Vancouver to Abbotsford. The focus of this study is limited to the Multi-family market.

Multi-family Project Data – New Home Sales The primary method used to collect information is a personal visit to each project being actively marketed. In addition to collecting current sales information, Zonda Urban representatives engage onsite sales staff to determine additional relevant information such as incentive offerings, traffic trends and active buyer profiles. In all instances, active sales range quoted in tables is defined as “The per square foot sales range in which 75 percent of sales of this product type occurred” For the purposes of this publication, Zonda Urban contacts various municipal planning departments along with developers (and/or their representatives) of proposed new developments to determine the anticipated timing of their approval and marketing launch.

For over 25 years, and prior to its transition to Zonda Urban, Urban Analytics provided clarity on what’s selling, who’s buying and what that means for our clients at every stage of their project.

Zonda Urban (Formerly Urban Analytics) been monitoring the new Multi-family home market in Metro Vancouver and beyond since 1994. In addition to providing clients with the most current and accurate information on actively selling and contemplated new Condominium and Townhome projects in Vancouver, Toronto, Ottawa, Calgary, Edmonton and Victoria on the market-leading NHSLive data product at nhslive.ca, Zonda Urban is also the leading provider of advisory services on the new Multi-family home market in these markets.

Zonda Urban also monitors the purpose-built rental apartment market, residential land transactions, and commercial property transaction data. Contact sales@zondaurban.com and/or advisory@zondaurban.com to learn more about these products and services.

Zonda Urban and NHSLive provides the confidence and knowledge to make better decisions.

Multi-family Project Data – Resale The resale market provides an important barometer from which to assess demand and determine pricing for new home projects. Accordingly, Zonda Urban closely monitors the resale market for Multifamily homes in order to identify trends that are relevant to the new home sector. However, the breadth and depth of product for sale can create findings that are less than helpful to the new home developer As a result, Zonda Urban recommends studying only product that is aged ten years or newer and valued at less than $1.2 million. While it could be argued that limiting the analysis to newer product (i.e. five years or newer) would be more relevant to the new home sector, we believe this would limit the sample size and potentially skew the data towards a specific type of product available in a small number of specific buildings/projects. In all instances active sales range quoted in tables is defined as “The active sales range in which 75 percent of sales of this product type occurred”.

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Zonda Urban (Formerly Urban Analytics) (604) 569-3535 zondaurban.com

President & Managing Broker

Jamie Squires

President

Jacky Chan

Address

#313 - 14928 56th Avenue, Surrey, BC V3S 2N5

Address

1480-1500 West Georgia Vancouver, BC V6G 2Z6

Phone Number

604.583.2212

Email

jacky@bakerwest.com

Website

bakerwest.com

Email Jamie@fifthave.ca Website fifthave.ca

This document has been prepared by Fifth Avenue Real Estate Marketing Ltd. And BakerWest Real Estate Incorporated with data provided by Zonda Urban for advertising and general information only. Fifth Avenue, BakerWest, and Zonda Urban make no guarantees, representations or warranties of any kind, express or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. E.&.O.E. Metropolitan Vancouver: West Vancouver to Aldergrove. Excludes Chilliwack, and Mission. Resale Data: MLS sold for attached product (High Rise, Low Rise, and Townhomes) built within the last ten years for units valued less than $1.2 million. Single family sales are excluded from the report. This publication is the copyrighted property of Fifth Avenue Real Estate Marketing Ltd. © 2023.

All rights reserved.

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