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