The Fifth Dimension Report - Winter 2024 Edition

THE FIFTH DIMENSION WINTER EDITION 2024

A Comprehensive Analysis of the Metro Vancouver Multifamily Market

WELCOME TO THE FIFTH DIMENSION

With the new year fully upon us we bring you this final installment for 2023 of 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.

For 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 based BakerWest Real Estate Incorporated, in addition to strategic partnerships with Vancouver Island based DFH 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 Zonda Urban, a leading provider of advisory services on the new Multifamily home market and a vital contributor to this report since 2010.

The Fraser Valley has long been a sought-after region for real estate investment and homeownership due to its stunning landscapes, thriving economy, and proximity to Vancouver. However, recent developments related to a year of interest rates hikes, the extension of a foreign buyers ban, and the implementation of short-term rental restrictions have significantly influenced the housing market in this region.

Leading up to 2023, interest rates have played a pivotal role in shaping the affordability and demand for new construction homes in Metro Vancouver and the Fraser Valley. The historically low interest rates observed during this period allowed potential buyers to secure mortgages at affordable rates, fueling an increase in housing sales. However, as interest rates increased throughout 2022 and 2023, more

and more buyers have been priced out of the market or into a smaller product type than they could afford previously.

The newly announced extension of the foreign buyer’s ban is now in effect until January 1, 2027. Originally put into place in 2022 for 2 years with the aim to cool housing prices and increase affordability for local buyers has had little to no effect on the market overall. This is of no surprise, in 2021 when there was no ban on foreign buyers, it was the hottest market British Columbia had experienced with foreign buyers being less than 1.5% during this period. Of this very low and insignificant portion of buyers in the market, a large majority of these buyers were found to be spouses of a Canadian resident, which the ban failed to take into account, leading to both buyers being denied the ability to go on title as a family.

Our local Provincial government in British Columbia has intervened to address the longstanding issue of inadequate affordable rental supply. They are implementing a new ban on short-term rentals in cities with populations exceeding 10,000 or those adjacent to such cities. This ban will take effect on May 1, 2024. Mandating what homeowners can and cannot do with their own properties like this may help a few communities in the lower mainland, but could be detrimental to the rest of the province. For example, the city of Penticton is a summer town where most business rely on the summer tourism income to survive for the rest of the year. There are limited hotels and motels that are unable to support the demand and very few camp grounds. The elimination of short-term rentals in areas like this could result in reduced tourism revenue for businesses throughout the city, making it more challenging for them to sustain themselves throughout the year. Additionally, it might exacerbate the housing issue as businesses face the risk of closure, potentially impacting the local housing market negatively. In larger more populated cities in the lower mainland such as Maple Ridge or Coquitlam where there are few hotels. Where will visitors stay

when these hotels reach capacity and there is no longer opportunities for short term rentals? Perhaps that land earmarked for future homes will be purchased by hotel chains instead to take advantage of the new demand that this ban may create?

Upon examining the data from the last quarter of 2023, the ambiguity surrounding these matters becomes evident in communities that have maintained a yellow light status, experiencing ongoing declines in sales. In instances like Ridge Meadows, where sales have decreased despite the introduction of new projects adding inventory to the market, the transition from a green light to a yellow light is notable. Other areas where supply has been and continues to be low and can offer the best price points have remained as a green light or even moved to a green light such as Burnaby/New Westminster market and Surrey Central/ North Delta markets.

We are excited to announce that we will have a new format for our Fifth Dimension coming out with the statistics for the first quarter of 2024. Stay tuned to view our exciting new layout and even more in depth articles to help you navigate today’s complicated market.

Regards, and all the best.

Jamie Squires

Jamie Squires

President & Managing Broker

Fifth Avenue Real Estate Marketing LTD.

Jamie@fifthave.ca

OVERALL MARKET SUMMARY

In this fourth edition of the Fifth Dimension for 2023, our data collection and analysis partner Zonda Urban shares its commentary on the most recent quarter, market performance year to date, and what to expect in the upcoming quarter with respect to Metro Vancouver’s multi-family residential real estate market.

Q4 — New Home Market

Metro Vancouver’s new home market exhibited signs of recovery following the impact of ten consecutive Bank of Canada interest rate hikes starting in early 2022. Fourth Quarter sales experienced a notable uptick, rising by 20 percent compared to the previous quarter. Throughout 2023, a total of 11,589 new home sales were recorded, reflecting a 20 percent decline from the previous year’s 14,447 sales. Despite this decrease, the market demonstrated resilience compared to the near-record low figures experienced in late 2022 and early 2023. As market conditions stabilized, developers became more inclined to release previously delayed new inventory. However, to ensure sustained consumer interest at the presented price points, previewing periods and early sales campaigns have been extended. This cautious approach aligns with the aim of fostering consumer confidence in the evolving market landscape. A total of 40 new projects representing 5,431 units were introduced during the quarter, a moderate increase from the 23 new projects consisting of 2,095 units released in the Third Quarter of 2023. A total of 3,210 new home sales were recorded during the Fourth Quarter of 2023, which is a 58 percent increase in sales volume when compared to the same quarter of 2022. There were 10,162 released and unsold units remaining at the end of the Fourth Quarter. This reflects a 26 percent increase from the previous quarter and a 24 percent increase from the same quarter last year. Additionally, there were 1,240 completed unsold new multi-family

homes available at the end of the Fourth Quarter, marking an 86 unit increase from the previous quarter and a 28 percent increase from the same quarter last year.

A total of 1,918 High Rise sales were recorded in the Fourth Quarter of 2023: a 31 percent increase from the previous quarter and 129 percent higher than the same quarter last year. High Rise sales accounted for 60 percent of new home sales during the quarter. There were 6,672 released and unsold High Rise units available at the end of the Fourth Quarter, a 34 percent increase from the previous quarter and a 20 percent increase year-over-year. The majority of High Rise sales occurred in the Tri-Cities (675 sales) and Burnaby/New Westminster (626 sales) market areas, as they both combined for 68 percent of all High Rise sales during the quarter. Over the quarter, 10 new project launches were launched in either Burnaby/New Westminster or the Tri-Cities, releasing 2,744 units into the market. Notable sales activity occurred at Beedie’s Debut (Fraser Mills), the first tower of Burquitlam Park District by Intergulf (Burquitlam), Tower 1 of Reign by Wesgroup (Metrotown), the South Tower of Town & Centre by Mosaic (Coquitlam Town Centre), and Sky Living by Allure Ventures (Surrey City Centre).

The 981 new Low Rise condominium sales recorded in the Fourth Quarter of 2023 were 18 percent higher than the previous quarter and four 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, 13 new projects launched, adding a total of 1,197 units to the market, which contrasts with the 14 new project launches in the previous quarter, releasing 1,154 units. The 2,272 released and unsold units at the end of the Fourth Quarter represents a 12 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 Fourth Quarter. Notable sales activity across Metro Vancouver’s Low Rise condominium sector was observed at Gabriel by Whitetail Homes (Surrey City Centre), the third building of Highstreet Village by AB Wall (Abbotsford West), Guildford the Greatest by Dawson + Sawyer (Guildford), the first building of Quadra Home’s Walnut Park (Yorkson), and The Commons by Zenterra (Willoughby Heights).

A total of 311 new Townhome sales were recorded in the Fourth Quarter of 2023, marking a 20 percent decrease from the previous quarter but a 25 percent year-over-year increase. There were 1,218 released and unsold Townhome units at the end of the Fourth Quarter, a 14 percent increase from the previous quarter and 12 percent higher than the same quarter last year. During the quarter, 11 new Townhome project launches were observed contributing 400 units to the market. This marks an increase from the previous quarter, where only five projects were launched, releasing a total of 156 units. Positive sales activity was observed at Terrayne by Townline (Burke Mountain), the North Phase of Riley Park by Mosaic (Burke Mountain), Woodward by Mosaic (Newton), Inifinity Properties’ Rail District (Central Abbotsford), and York by Listraor (Central Cambie Corridor).

OVERALL MARKET SUMMARY

Q4 — Resale Market

A total of 1,665 newer multi-family homes were resold in the Fourth Quarter of 2023. This total is 34 percent lower than the previous quarter but is a 14 percent increase compared to the same quarter in 2022. When comparing activity across product sectors, High Rise, Low Rise, and Townhome re-sales were 30, 40, and 33 percent lower, respectively, when compared to the previous quarter. However, they experienced increases of 35, 7, and 11 percent, respectively, when compared to the same quarter last year. Overall, active listings decreased by 23 percent when compared to the previous quarter but it increased by 33 percent in comparison to the same quarter last year. Active listings for High Rise, Low Rise, and Townhome products each experienced decreases of 25, 11, and 29 percent, respectively, when compared to the Third Quarter of 2023.

Observations and Opinions

At time of publication, the Bank of Canada has maintained its overnight lending rate at five percent for the fifth consecutive announcement. Concurrently, it has been reported that economic growth has stagnated since mid-2023 and is projected to persist into the First Quarter of 2024. Amid fiscal tightening, there is some consensus that near term economic growth and inflation rates have peaked, leading to anticipations of interest rate decreases in the upcoming year. This heightened optimism has spurred numerous project launches towards the year-end, surpassing the previous quarter by more than 3,000 units. Several of these developments have achieved success, characterized by strategic community placement (particularly in masterplan developments), sharply priced offerings, longer completion timelines, and reduced deposit structures. However, despite the positive sentiment in the pre-construction market, elevated borrowing rates continue to impact overall sales activity and has shifted housing demand towards the rental market. As a result, rental vacancies continue

to hover around all-time lows and rental rates have consequently reached all-time highs in late 2023.

Notable projects that could launch in the First or Second Quarter of 2024 include: Vancouver Downtown - Anthem’s Park; Vancouver West - Peterson Group’s Ashleigh, Stanton Development’s Willow Walk; Vancouver East - Hudson Project’s Naimo, Fabric Living’s The Cut 2; Burnaby/New Westminster - Anthem’s South Yards Tower 1B and Ethos, Wanson Group’s Nido; North Shore - Creo Development’s Morrison Walk, Wall Financial’s The Trails, SwissReal Group & Brimming Development’s Pierwell; Tri-Cities - Beedie’s Encore, Qualex-Landmark’s Ironwood, Marcon’s Soenhaus, Vansoho & Quad City Limited Partnership’s Ksana, Polygon Homes Partington Creek; Richmond/South Delta – Red Construction’s The Madison at Hunter; South Surrey/White Rock - Streetside Developments’ The Boroughs: Chelsea, Hive Development’s Elisa; Central Surrey/ North Delta - Bosa Properties Parkway 2, Concord Pacific’s Piano, Anthem’s Georgetown Three, Streetside Developments’ Juno, Maskeen Group’s Victory, Amson Group’s Amson Block; Langley/ Cloverdale - Scale Projects’ Scale, ML Emporio Properties’ Azure Grove, Essence Properties’ Jericho Crossing, CastleHill Homes’ Renfrew; Abbotsford/Mission - Mann Group’s Grovemont, AB Wall’s Highstreet Village (Building 4), Wood Lock Developments’ Everwood.

NEW MARKET SUMMARY

VANCOUVER DOWNTOWN

The Vancouver Downtown market area has maintained its “Yellow Light” status for the Fourth Quarter of 2023. The quarter witnessed a modest increase in total sales, with 37 transactions, marking a seven-sale rise compared to the preceding quarter. The Downtown Vancouver market area persists in experiencing constrained sales activity, primarily attributable to a shortage of available inventory and elevated price points. In 2023, the market has only seen the launch of two projects, introducing a combined total of 387 units. Presently, 66 units are move-in ready, and developers are offering incentives, such as GST promotions and credits, to expedite the sale of standing inventory. The products in this area continue to allure luxury and high-end buyers, including international buyers. The Downtown market is expected to maintain its current level of sales activity into the new year. However, as ongoing projects reach completion, an upswing in marketing activity is anticipated, particularly for move-in ready homes.

New Market Highlights

601 Beach, by Pinnacle International, launched their 54-storey High Rise in early October releasing 252 units into the market area

Boffo Developments’ 26-storey High Rise, The Smithe, sold its last remaining eight units over the quarter and is now sold out after being on the market since early 2017

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

Onni’s High Rise, 1335 Howe, reported 10 sales throughout the quarter, with 51 remaining units that are now move-in ready

Bosa Properties’, Fifteen Fifteen is now reported to be 65 percent sold as it achieved 10 sales over the quarter **Note:

VANCOUVER DOWNTOWN RESALE MARKET SUMMARY

MLS Resale Highlights

Average sales values per square foot have decreased by $144 when compared with the Fourth Quarter of 2022 for High Rise product

The number of High Rise listings has decreased from 195 to 166 while High Rise resales increased by two when compared to the Fourth Quarter of 2022

For High Rise condominiums, the average per square foot values of one and two bedroom units decreased by $1 and $189, respectively, since the Fourth Quarter of 2022

The months of supply for resales in the High Rise market has decreased from 12.9 months to 10.0 months when comparing to the same quarter last year

The sales range has decreased by $115,00 on the lower end but increased by $698,000 on the higher-end over the past four quarters for High Rise product

The average time a unit is on the market has decreased for High Rise by one day when compared to the Fourth Quarter of 2022

NEW MARKET SUMMARY

VANCOUVER WEST

For the Fourth Quarter of 2023, Vancouver West maintains its “Yellow Light“ status. During this period, the market area witnessed 118 sales during the quarter, marking a 33 percent decrease from the previous quarter, with an overall absorption rate of 12 percent. The market area saw the introduction of four new projects over the quarter, releasing a total of 101 units, with only 26 percent of these units being absorbed. The newly launched projects, including a six-storey concrete building and three Townhome developments, may have struggled due to their premium pricing strategy, targeting a niche luxury demographic and thereby limiting their audience of potential buyers. High Rise properties continued to dominate sales, constituting 42 percent of total sales, while the Low Rise sector experienced a six percent increase in sales, totaling 38 units. Many projects in this market area have temporarily halted their sales campaigns during construction activities. However, as these projects near completion, a surge in sales is anticipated with the release of new inventory into the market.

New Market Highlights

W16, by Wesgroup released their six-storey concrete condominium in late October and achieved 12 sales with a blended price per square foot of $2,000

Sightline Properties released Dahlia, their 46-unit townhome project in late October and reported two sales at an overall average price of $1,550 per square foot

Modello Homes released Be W49th, their boutique 17-unit Townhome project with an overall blended price per square foot of $1,473

Listraor released York, a 29-unit Townhome development in late October and achieved a total of 12 sales at an overall price per square foot of $1,423

Ashleigh, a six-storey 124-unit concrete condominium building by Peterson Group is expected to be launched in late January

VANCOUVER WEST RESALE MARKET SUMMARY

MLS Resale Highlights

Total listings and resales have increased by 70 and five, respectively, when compared to the Fourth Quarter of 2022

The average time a unit is on the market has decreased for Low Rise and Townhome product by 13 and 71 days, respectively, but increased for High Rise product by 34 days when compared to the Fourth Quarter of 2022

Average price per square foot sales values for High Rise and Townhome units have increased by $34 and $45, respectively, while Low Rise units decreased by $27 over the past four quarters

Two bedroom High Rise and Low Rise product saw a decrease of $4 and $99, respectively, in average price per square foot sales value when compared to four quarters ago

The sales range has decreased by $21,000 on the lower end and by $66,000 on the higher end when compared to the Fourth Quarter of 2022 for High Rise product

The Townhomes sales range has increased by $89,000 on the lower end but decreased by $212,678 on the higher-end over the past four quarters

NEW MARKET SUMMARY

VANCOUVER EAST

The Vancouver East market area is set to maintain its “Yellow Light” status in the final quarter of 2023. The market area witnessed a downward shift with 114 reported sales during the quarter, reflecting a 25 percent decrease from the previous quarter. The absorption rate remained low, reaching 12 percent. New activity in the market slowed down in the latter part of 2023, with only one project launching and introducing 204 units. Despite the overall slowdown, this new project achieved 30 percent of all total sales in the quarter. Notably, the new project was part of an established masterplan, featuring multiple completed towers that provided prospective buyers with a tangible sense of the community. Projects offering reduced deposit structures, some as low as five percent, experienced success in sales. High price points continue to act as a limiting factor for potential buyers entering the housing market. As the quarter concluded, there were a total of 107 move-in ready units available, indicating opportunities for those ready to make a purchase in East Vancouver.

Market Highlights

Wesgroup released a 204-unit High Rise in their River District masterplan, Ardea, in mid October and achieved a total of 35 sales at an overall blended price of $1,250 per square foot

The River District masterplan by Wesgroup nearly accounted for all High Rise sales in the market area as Ardea, Harlin, Paradigm, and MODE reported for a combined total of 58 sales

Bailey by Streetside Developments is now 85 percent sold with 12 sales over the quarter. The project began construction and offered a reduced deposit structure of 5 percent Popolo by EPIX Developments has reported eight sales in the Fourth Quarter of 2023 at an overall blended price of $1,100 per square foot

The second phase of The Cut by Fabric Living is now previewing and is expected to release in the First Quarter of 2024 releasing 50 Townhomes into the market area

VANCOUVER EAST RESALE MARKET SUMMARY

MLS Resale Highlights

The average time a unit is on the market has increased for High Rise units by 16 days while Low Rise units decreased by 28 days and Townhomes experienced no change when compared to the Fourth Quarter of 2022

Average price per square foot sales values for High Rise and Townhome units increased by $9 and $6, respectively, while Low Rise units decreased by $7 when compared to the Fourth Quarter of 2022

The months of supply for resales in the Low Rise market has increased from 4.0 months to 6.5 months when compared to the same quarter last year

The average price per square foot in a Low Rise for a one bedroom unit is down by $51 while a two bedroom unit experienced no change when compared to the Fourth Quarter of 2022

Total listings and resales have increased by 15 and two, respectively, when compared to the Fourth Quarter of 2022

The average price per square foot for a two bedroom Townhome decreased by $7 while a three bedroom Townhome has increased by $40 since the Fourth Quarter of 2022

NEW MARKET SUMMARY

RICHMOND/SOUTH DELTA

The Richmond/South Delta market area is set to maintain its “Yellow Light” status for the Fourth Quarter of 2023. Notably, the market observed a substantial increase in total sales, reaching 159—an increase of 101 percent from the previous quarter. This surge in sales was predominantly fueled by the High Rise sector, which experienced a 327 percent increase in sales compared to the Third Quarter of 2023. This surge can be attributed primarily to the launch of a new project, releasing 157 High Rise units with an absorption rate of 45 percent. Remarkably, sales from this single project accounted for nearly 50 percent of all sales in the quarter. Despite the overall boost in sales, the absorption rate remains relatively low at 14 percent, signaling that existing inventory has yet to gain significant traction. High mortgage rates have impeded the movement of existing projects, with 324 unsold units classified as move-in ready. In response to the subdued buyer activity, incentives tied to the Lunar New Year are anticipated to be introduced over the First Quarter of 2024, aiming to stimulate increased market engagement.

Market Highlights

Polygon released, Aurora, the first building of their masterplan, Talistar, at the beginning of Q4-2023.

The 161-unit High Rise achieved 70 sales at an overall blended price of $1,255 per square foot

Aspac Developments’ High Rise, Hollybridge at River Green recorded 40 sales over the quarter. The project is offering a discount program of up to $515,100 off

Salt and Meadows 3, Aquilini Developments Low Rise building in their Boardwalk community achieved 15 sales over the Fourth Quarter of 2023 as they offered select homes up to $100,000 off, GST credit, and a reduced deposit structure of 10 percent

Executive Group’s masterplan, West Coast Estates, sold 70% of its released Low Rise units accounting for nine sales over the quarter at an overall blended price of $800 per square foot

Ocean Row, an Aquilini Development’s waterfront Townhome project sold five units over the quarter at an overall blended price of $820 per square foot

RICHMOND/SOUTH DELTA RESALE MARKET SUMMARY

MLS Resale Highlights

Total resales have increased from 170 to 185 when compared to the Fourth Quarter of 2022

The High Rise sales range has decreased by $13,000 on the lower end but increased by $104,000 on the higher-end when compared to the same quarter in 2022

The sales range of Townhomes increased by $98,100 on the lower end but decreased by $9,000 on the higher-end when compared to the Fourth Quarter of 2022

Average per square foot sales values of High Rise, Low Rise, and Townhome units increased by $89, $36, and $11, 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 $69 and $40, respectively, over the past four quarters

The average sales price of a two bedroom and three bedroom Townhome increased by $204,700 and $33,019, respectively, since the Fourth Quarter of 2022

NEW MARKET SUMMARY

BURNABY/NEW WESTMINSTER

The Burnaby/New Westminster market area has been designated a “Green Light” status for the Fourth Quarter of 2023. Throughout this period, the market area remained stable in sales volume, achieving a total of 636 transactions, a minor three percent decline from the preceding quarter. Notably, six new projects launched in the city of Burnaby, all of which were High Rises, with four specifically situated in the bustling Metrotown area. High Rise properties continued to dominate the landscape, comprising 98 percent of all sales in the market area, marking a two percent uptick from the previous quarter. High interest rates continue to impact buyer sentiments, resulting in projects with extended construction timelines exhibiting stronger performance compared to those with shorter completion horizons. The Fourth Quarter of 2023, the market area witnessed an absorption of 18 percent of the total inventory, signifying a 10 percent decline compared to the preceding quarter.

Market Highlights

Wesgroup’s Reign – Tower 1, a 35-storey 260-unit High Rise saw 50 percent of its inventory absorbed, accounting for 130 sales at a blended price per square foot of $1,333

Solhouse 6035 by Bosa Properties recorded 75 total sales of their 50-storey 411-unit High Rise at an overall average price of $1,450 per square foot

Concord Pacific’s Greenhouse, a 297-unit 42-storey High Rise achieved 80 sales blending at an average price per square foot of $1,456

Riviera by Ledingham McAllister a 248-unit 35-storey High Rise recorded 90 total sales averaging $1,250 per square foot

Millenium Development’s Etoile Gold, a 47-storey 277-unit High Rise in the Brentwood area achieved 80 total sales at a blended price per square foot of $1,360

Icon, a 46-storey 352-unit High Rise within the Southgate Village Master plan community by Ledingham McAllister achieved 75 total sales at an overall price of $1,160 per square foot.

BURNABY/NEW WESTMINSTER RESALE MARKET SUMMARY

MLS Resale Highlights

Total listings and resales have increased by 94 and 53, respectively, when compared to the Fourth Quarter of 2022

The average per square foot sales values of High Rise, Low Rises, and Townhome units increased by $25, $12, and $64, respectively, when compared to the Fourth Quarter of 2022

The sales range of High Rise product increased by $35,000 on the lower end and by $19,999 on the higher-end when compared to the Fourth Quarter of 2022

Compared to the Fourth Quarter of 2022, the average price per square foot of one bedroom High Rise and Low Rise product has increased by $5 and $78, respectively

The average price per square foot of a two bedroom High Rise unit increased by $36 but decreased by $23 for a Low Rise unit over the past year

The average sales price of a two bedroom and three bedroom Townhome has increased by $75,766 and $25,745, respectively, when compared to the Fourth Quarter of 2022

NEW MARKET SUMMARY

NORTH SHORE

The North Shore market area is slated to achieve a “Yellow Light” status for the Fourth Quarter of 2023, having recorded a total of 97 sales during the period, representing a 25 percent decrease from the previous quarter. While the High Rise sector demonstrated resilience with only a 13 percent decrease, fueled by the introduction of the market area’s sole new project launch releasing 57 units and achieving an 82 percent absorption rate, the Low Rise and Townhome sectors experienced declines of 32 and 67 percent, respectively. The reduction in sales can be attributed to a lack of new inventory, exacerbated by high price points and projects temporarily halted for construction. The absorption rates for the High Rise, Low Rise, and Townhome sectors witnessed declines of one, 20, and 12 percent in the Fourth Quarter, resulting in an overall absorption rate of 21 percent—a five percent drop from the previous quarter. Despite the subdued transactions in the quarter, there is anticipation of increased activity, particularly in the Townhome sector, with multiple launches scheduled early in the new year.

Market Highlights

Darwin Construction and Citimark released their eight-storey, 57-unit High Rise, Weston Place, in West Vancouver in mid October and achieved a total of 47 sales at an overall blended price of $1,800 per square foot

Elle, Polygon’s High Rise in Central Lonsdale recording 10 sales over the quarter at an overall blended price of $1,515 per square foot

Ashton by Fairborne Homes, led all sales in the Low Rise sector with 22 sales over the Fourth Quarter of 2023

The Sentinel, Denna Homes’ 26-storey High Rise in West Vancouver sold its last four remaining units over the quarter and is now sold out after being on the market since Spring 2020

Creo Developments is expected to release the final chapter of their Morrison Series, Morrison Walk, a 60-unit Townhome project in North Vancouver, in February 2024 with homes starting from the low $1.2 millions

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

NORTH SHORE RESALE MARKET SUMMARY

MLS Resale Highlights

There were 138 total listings, an increase by 57 when compared to the Fourth Quarter of 2022

Compared to the Fourth Quarter of 2022, the average time a unit is on the market has decreased for High Rise units by 22 days while Low Rise and Townhome units increased by seven and 26 days, respectively

The average per square foot sales values for High Rise, Low Rise and Townhome units increased by $37, $72, and $45, respectively, when compared to the Fourth Quarter of 2022

The sales range decreased by $25,000 on the lower-end but increased by $135,000 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 $33 and $100 when compared to the Fourth Quarter of 2022

The average sales price of two bedroom Townhome increased by $165,889 while it decreased by $2,409 for a three bedroom Townhome when compared to the Fourth Quarter of 2022

NEW MARKET SUMMARY

TRI-CITIES

The Tri-Cities market area has earned a “Green Light” status for the final quarter of 2023, marked by a remarkable surge in sales. A total of 923 sales were recorded, reflecting a 117 percent increase from the preceding quarter. This upswing in sales was widespread across all sectors and can be attributed to the launch of 12 new projects, bringing 1,566 units into the market. The High Rise sector played a pivotal role, contributing to 73 percent of the total sales. This sector’s success was underscored by the introduction of several expansive tower developments, notably highlighted by a masterplan’s inaugural release. The first building of the masterplan sold out within a month, showcasing that even in current market conditions, competitively priced projects with extended completion times and a communityoriented approach can attract buyers. Similar trends were evident in the Low Rise and Townhome sectors, both experiencing substantial increases in sales by 152 and 116 percent, respectively. This positive momentum is anticipated to persist into the new year, with more project launches on the horizon. Additionally, the introduction of incentive offerings tied to the Lunar New Year is expected to drive increased traffic, further stimulating market activity.

New Market Highlights

Beedie’s Fraser Mills masterplan was unveiled with the release of Debut, a 36-storey, 318-unit High Rise building. The project started sales around October and sold all 318 units in three weeks at an overall blended price of $1,000 per square foot. The next tower of Fraser Mills, Encore is expected to launch in the new year

The first tower of Burquitlam Park District by Intergulf Development Group was released in early Q42023. This 40-storey, 364-unit High Rise achieved 130 sales at an average blended price of $1,200 per square foot

Gardena, Intracorp’s Burquitlam masterplan released their second phase, Magnolia, a 17-storey, 150unit High Rise early in the quarter and achieved 68 sales at an overall blended price of $1,140 per square foot

The first tower of Town & Centre by Mosaic, a 30-storey, 221-unit High Rise in Coquitlam Town Centre, was released in December and sold 80 units by the end of the year at an average price of $1,100 per square foot

Lodana by Circadian Group, a 123-unit Low Rise and Townhome development in West Coquitlam released in mid October and achieved a total of 55 sales at an average price of $1,050 per square foot for the Low Rise units and $890 per square foot for the Townhomes

Townline released Terrayne, a Townhome project in Burke Mountain early in the quarter. The 159-unit project achieved 26 sales at an overall blended price of $851 per square foot

Port Coquitlam saw the launch of two Low Rise projects in the Fourth Quarter of 2023, Marlow by Enrich Developments and Hawthorne by Otivo Development Group

RESALE MARKET SUMMARY

TRI-CITIES

MLS Resale Highlights

Compared to the Fourth Quarter of 2022, sales increased for High Rise units and Townhomes by 29 and 31, respectively, while it decreased for Low Rise units by 43

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

The average sales value per square foot for High Rise units and Townhomes increased by $45 and $70, respectively, but decreased for Low Rise units by $17 when compared to the Fourth Quarter of 2022

The lower end sales range for High Rise units and Townhomes has decreased by $8,000 and $160,100, respectively, while it increased by $43,000 for Low Rise units 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 $34 and $12, respectively, when compared to the Fourth Quarter of 2022

The average sales price of a two and three bedroom Townhome increased by $76,854 and $38,495, respectively, when compared to the Fourth Quarter of 2022

NEW MARKET SUMMARY

RIDGE MEADOWS

The Ridge Meadows market area has been reassigned a “Yellow Light” status for the Fourth Quarter of 2023, reflecting a shift driven by the introduction of only one new project during the quarter, in contrast to three in the previous quarter. Total sales in this market area declined by 39 percent to 51 transactions over the quarter. Notably, the Low Rise sector witnessed the most significant drop, with sales plummeting by 52 percent to just 32 transactions. Conversely, the Townhome sector saw a modest increase in sales, rising by 12 percent to 19 total sales. Absorption rates dropped substantially, with only 14 percent of all inventory being absorbed throughout the quarter. Many ongoing projects in this market area have temporarily paused their sales campaigns, awaiting construction completion in early 2024 to release their remaining unsold inventory. The Low Rise sector is poised for a potential surge in sales as projects near completion, illustrated by the absence of any standing inventory for this product type.

Market Highlights

The Falls – Kanaka Springs, a 165-unit townhome project by Epic Homes launched in early October and achieved eight total sales at a blended price per square foot of $600

Alterra Development Group’s City and Laurel, a six-storey 100-unit Low Rise led all projects in this market area in sales for the second consecutive quarter with 20 total sales

Hillside Homes a 16-unit townhome project by Azure Group sold out at a blended price per square foot of $744 with 10 new sales over the quarter

The North at Point Haney a 67-unit Low Rise condominium project by Falcon Homes continued their strong sales campaign with seven new sales at an overall price per square foot of $783

Edge on Edge by MacLean Homes sold out at an overall price per square foot of $646 after selling their remaining three units as the project completed.

RIDGE MEADOWS RESALE MARKET SUMMARY

MLS Resale Highlights

Total listings and resales have increased by 89 and 11, respectively, when compared to the Fourth Quarter of 2022

The average sales value per square foot for Low Rise units and Townhomes increased by $4 and $43 since the same quarter last year

The average sales price of a one bedroom Low Rise unit increased by $46,018 but it decreased by $51,214 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 $59,900 but the upper bound decreased by $10,000 compared to the same period last year

The sales range has decreased by $3,000 on the lower end but increased by $44,000 on the higher-end over the past four quarters for Townhomes

Three bedroom Townhome units saw an increase in average price on sold units by $33,179 over the past year

NEW MARKET SUMMARY

SURREY CENTRAL/NORTH DELTA

The Central Surrey & North Delta market area has earned a “Green Light” status for the Fourth Quarter of 2023, recording 563 sales. This marks a 19 percent rise compared to the previous quarter. The High Rise sector spearheaded this surge with a 55 percent boost in sales, overtaking all other product types and constituting 49 percent of total sales in the quarter. This surge is credited to the introduction of a new tower, which absorbed 100 sales during the quarter. Sales remained robust across all sectors, driven by the consistent release of new inventory. The quarter witnessed seven new project launches, introducing a total of 777 units to the market area. This momentum is expected to carry into the new year, with multiple High Rise towers and Low Rise condominiums on the horizon. The market’s competitive price points, lower than those in areas north of the Fraser River, have been a magnet for buyers and investors. This attraction is further fueled by reduced deposit structures and extended completion timelines. Overall, the absorption rate held steady at 31 percent, mirroring the performance of the previous quarter.

Market Highlights

Guilden, a Low Rise development in Guildford by RDG Management released their first building that consists of 111 units in November

Allure Ventures released Sky Living, a 32-storey, 375-unit High Rise in Whalley in November. The project sold out its first phase of around 100 units at an overall blended price of $1,100 per square foot

Sequoia, ML Emporio Properties’ High Rise in Surrey Central achieved 66 sales over the quarter. The project offered a reduced deposit structure of 7.5 percent and incentive credit of up to $60,000

Whitetail Homes released their 125-unit Low Rise building, Gabriel, in mid October and achieved a total of 80 sales at an overall blended price of $928 per square foot. The project offered a winter sale of up to $120,000 off

Guildford the Greatest, Dawson + Sawyer’s newest Low Rise launch in Guildford released in late October with an average price of $860 per square foot and recorded 57 sales over the quarter

Three new Townhome project launched in Surrey: Mason Living by Panorama West Group, Riverside View by Panorama West Group, and Woodward Lane by Polywest Homes adding 78 Townhomes into the market area

The Whalley neighbourhood is expected to see increased activity in the High Rise sector with multiple towers launching in the new year: Piano by Concord Pacific, Parkway 2 by Bosa Properties, Georgetown Three by Anthem, and Juno by Streetside Developments

Released

SURREY CENTRAL/NORTH DELTA RESALE MARKET SUMMARY

MLS Resale Highlights

Total listings and resales increased by 115 and 72, respectively, when compared to the Fourth Quarter of 2022

The months of supply for resales in the Townhouse market has decreased from 5.0 months to 4.4 months when compared to the same quarter last year

The months of supply for resales for High Rise product decreased by 0.9 months while it increased by 1.3 months for Low Rise product when compared to the Fourth Quarter of 2022

The per square foot sales value has increased for High Rise and Low Rise units by $2 and $39, respectively, while Townhomes decreased by $2 when compared to four quarters ago

One bedroom High Rise and Low Rise units saw an increase in average price per square foot on sold units by $7 and $13, respectively, over the year

The average two bedroom and three bedroom Townhome saw an average price increase of $53,500 and $4,498, respectively, when compared to the same period last year

NEW MARKET SUMMARY

SOUTH SURREY/WHITE ROCK

The South Surrey/White Rock market area is being downgraded to a “Yellow Light” status for the Third Quarter of 2023. It recorded a total of 64 sales, representing a 39 percent decrease from the Second Quarter of 2023. This is a substantial decline compared to the 105 sales in the previous quarter. 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. However, the High Rise sector experienced a remarkable 240 percent increase in sales. 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.

Market Highlights

The top preforming project was Landmark Premiere Properties third tower of Foster Martin called The Landmark, achieving 11 new sales over the quarter

The Cedar Building of King + Crescent by Zenterra led all wood frame product types in sales with five new sales over the Fourth Quarter of 2023

The Loop by Gramercy Development’s led the way in the Townhome sector with four total sales over the quarter

The final phase of Streetside Development’s The Boroughs, a 45-unit townhome project called Chelsea is expected to launch in 2024

SOUTH SURREY/WHITE ROCK RESALE MARKET SUMMARY

MLS Resale Highlights

When compared to the same quarter last year, the total number of listings increased by 40 while resales decreased by three

The months of supply for resales for High Rise, Low Rise, and Townhome product has increased by 3.9, 1.8, and 1.0 months, respectively, when compared to the Fourth Quarter of 2022

Average per square foot sale values for High Rise and Low Rise units increased by $89 and $7, respectively, when compared to the Fourth Quarter of 2022

High Rise products have seen a decrease in average days spent on the market, averaging 52 fewer days on the market and Low Rise products also saw a decrease of two days when compared to the Fourth Quarter of 2022

One and two bedroom Low Rise units saw an increase in average price per square foot on sold units by $25 and $83, respectively, over the past year

Two bedroom and three bedroom Townhomes saw an increase in average sales price by $130,650 and $24,934 when compared to the same quarter last year

NEW MARKET SUMMARY

LANGLEY/CLOVERDALE

The Langley/Cloverdale market area is poised to maintain its “Yellow Light” status for the Fourth Quarter of 2023. Recording a total of 219 sales, there was a slight decrease of 14 percent compared to the preceding quarter, which had 255 sales. Notably, three new project launches occurred, all within the Low Rise sector, introducing 300 units. These projects reported a robust 44 percent absorption rate, resulting in 132 sales. The Low Rise sector remains a focal point, encompassing 91 percent of all total sales, driven by affordable entry price points and ongoing community development, appealing to both first-time home buyers and investors. However, in the Low Rise and Townhome sectors, absorption rates reduced to 29 percent and 13 percent, respectively. With the current stabilization of market conditions, developers are gaining confidence to release more inventory. The upcoming year is projected to witness multiple project launches, fostering increased sales activity and supplying the market area with a greater inventory.

Market Highlights

Zenterra released their first building of The Commons, a Low Rise Development in Willoughby. The 84-unit building was launched in in October and achieved 51 sales at an overall blended price of $903 per square foot

Walnut Park, Quadra Homes’ Low Rise Development released their first building that consisted of 127 units. The project achieved 48 sales at an average price of $889 per square foot

Mortise Group of Companies released Unison, a 178-unit Low Rise development in October. The project launched their first building that consists of 89 units an achieved 33 sales at an overall blended price of $850 per square foot

Vera, a Low Rise development by Anxin Projects, sold 38 units at a blended price per square foot of $875 over the quarter. The project offered a reduced deposit structure and assignment fee

Increased activity in the market area is expected in the Low Rise sector with the release of the following projects in the upcoming year such as Scale by Scale Projects, Azure Grove by ML Emporio Properties, and Jericho Crossing by Essence Properties

Oakley released its final phase comprised of stratafied single-family homes early in the fourth quarter after selling all available inventory of their townhome product

RESALE MARKET SUMMARY

LANGLEY/CLOVERDALE

MLS Resale Highlights

Resales for Low Rise product decreased by two while Townhome product increased by 4 when compared to the Fourth Quarter of 2022

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

The sales range increased by $60,000 on the lower-end and by $84,112 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 $38 and $44, 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 $54 and $37, respectively, when compared to the Fourth Quarter of 2022

Since the Fourth Quarter of 2022, the months of supply for Townhome product has increased from 2.4 months to 2.5 months

NEW MARKET SUMMARY

ABBOTSFORD/MISSION

The Abbotsford/Mission market area maintains its “Green Light” status for the Fourth Quarter of 2023, driven by a 41 percent surge in sales, totaling a 201 sales within this market area. Sales in the Low Rise sector soared by 66 percent, contributing to a total of 136 sales for the quarter. This sector alone accounted for 68 percent of the overall sales, with the Townhome sector representing the remaining 32 percent. Notably, a significant portion of the Low Rise sector’s sales can be attributed to the successful launch and subsequent sell-out of one project during the quarter. Strong buyer interest is expected to persist as additional inventory is released through a combination of new project launches and the release of additional units within masterplan communities in upcoming phases. Noteworthy factors driving this sustained interest include the attractive entry price points and the growing trend of remote work, which continues to attract investors to this thriving market area.

Market Highlights

Phase 3 of Condominiums at Highstreet Village by AB Wall Group was released in the fourth quarter, subsiquently selling out of all 65 units at a bended price per square foot of $771. With a new release of phase 4 townhomes aimed to release in the early 2024

Grovemont by Mann Group is projected to release in the first quarter of 2024 with 190 steel-frame constructed townhomes with rooftop patios on Sumas Mountain in East Abbotsford.

Redekop Faye’s Jacob, a 140-unit Low Rise project continued to perform strongly with 138 total sales and 26 sales over the quarter, leaving only two units remaining in the project

The Mason at the Rail District by Infinity Properties exhibited strong sales activity with 27 new sales over the quarter for a total of 62 sales at an overall price per square foot of $690

Golf Pointe Estates by Divine Homes Ltd. sold their remaining four units, resulting in all 27 units being sold out at an overall blended price of $391 per square foot

ABBOTSFORD/MISSION RESALE MARKET SUMMARY

MLS Resale Highlights

Total listings and resales increased by 47 and 22, respectively, when compared to the Fourth Quarter of 2022

Over the past four quarters, the lower bound of the sales range for Low Rise product has increased by $25,000 and by $18,000 on the upper bound

Price per square foot sales values for Low Rise condominiums are up by $70 while Townhomes experienced no change from the Fourth Quarter of 2022

The average days spent on market for Low Rise units increased by 31 days while it decreased by 22 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 $72 and $64, respectively, when compared to the same quarter in 2022

The average price per square foot for two bedroom and three bedroom Townhome has increased by $32 and $9, respectively, when compared to the Fourth Quarter of 2022

LOOKING BACK & AHEAD

As the final quarter and year of 2023 has ended, we have changes to the market from multiple angles including rising interest rates, inflation and government intervention at national and provinicial levels.

Looking Back

In the third quarter we forecasted a further decline in sales over the final quarter of the year. As seen in this report this held true in many areas of the lower mainland and fraser valley. However, it should be noted that not every pocket is slowing down. Areas such as Abbotstford Mission, the Tri-Cities, and Surrey did see an increase in sales activity over the final months of 2023. It apppears cities that can offer homes with the best value are still seeing demand for new home sales in the multi-family sector.

We also discussed the province’s naughty list and how some cities have been proactive in working in changing policies, hiring more planners as required to help bring supply to market sooner and see what they come up with to meet their housing targets. It was also noted that some cities are taking a more adverse wait and see reaction and wonder how or if they will be able to catch up to meet at least 75% of the goals the province has given them. Some cities are adding more costs through taxation, and fees which only increases the price of a new home and passing it on to the consumers, increasing the sales price of a home without necessarily adding further value. Due to inflation, the longer anything takes, including homes, to get to the market the more they cost as supplies and labour continue to rise. The biggest issue from a development side will be that municipalities are able to provide infrastucture to areas to allow the development required to meet these targets to even begin. This would include but is not limited to things like storm & sewer, access roads, schools and most importantly hydro from BC Hydro and we really hope the

province is speaking with and on BC Hydro just as much as they are on the cities or this will all be for nothing if we cannot supply the power required for all these new homes. Developers have been reporting delays to completion due to hydro delays for over a year now. Will this significant factor be addressed anywhere?

Looking Ahead

As we enter a new year with new laws, extended bans, and an anticipated updated ‘naughty’ list of cities from our provincial government we are keen to see how this may affect our market as whole and how it will affect each node within our market.

Will all these changes help increase supply or could we see a further decrease in supply with more and more developers waiting on certainty from the market and governments? Will the people of BC tell the government this is what they want or advise this is not what they want in our next provincial election coming this fall? Have the citizens had enough of being told what to do and how to use their property? Will the government have to anti-up and come up with a solution to their own issue instead or will all this just be accepted?

Will developers lower prices as seen with the recent release of Juno in Surrey City Centre? Perhaps more banks will allow for a 10% deposit on concrete? (Typically 20% is required for high-rise purchases) Will pricing and deposit structures like this last? If so this will cause further lack of supply as developrs put projects on hold until they can be sold and built in a more favourable market?

We will have to wait and see what 2024 has in store.

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?

Will our government address the issue of having enough power and delivering it on time for all their new home targets? Have they even factored this in?

Will the Bank of Canada hold rates or lower them in March? April?

Jamie Squires

Jamie Squires

President & Managing Broker

Fifth Avenue Real Estate Marketing LTD.

Jamie@fifthave.ca

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

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.

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”.

WHY ZONDA URBAN?

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.

Zonda Urban

(604) 569-3535

zondaurban.com

President & Managing Broker Jamie Squires

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

Phone Number 604.583.2212

Email Jamie@fifthave.ca

Website fifthave.ca

President Jacky Chan

Address 1480-1500 West Georgia Vancouver, BC V6G 2Z6

Email jacky@bakerwest.com

Website bakerwest.com

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.