THE FIFTH DIMENSION SPRING EDITION 2024
A Comprehensive Analysis of the Metro Vancouver Multifamily Market
in Collaboration With:
Produced
WELCOME TO THE FIFTH DIMENSION
With a new year and a new quarter we are entering a season of change for our industry. Part of change is adapting to the new conditions surrounding us.
For well over four decades, Fifth Avenue has been and continues to be a leading full-service, suburban and Fraser Valley market-focused residential real estate sales and development marketing brokerage. As part of Peerage Realty Partners, we will continue to adapt and even expand throughout British Columbia.
The supporting data for this final issue 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.
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, a mixture of higher interest rates and new additional taxes, such as the anti-flipping tax, the increased capital gains tax, and the ban on short-term rental of privately owned properties, is creating significant uncertainty for the industry. This situation, compounded by claims of a housing crisis and the need for more housing, is affecting both buyers and sellers.
Inflation remains high, yet there are continuous and flourishing rumors of upcoming interest rate reductions. Based on the current rate of inflation, this seems increasingly unlikely. However, even if a reduction occurs, the potential decrease in borrowing costs would be negligible.
While a small reduction might slightly boost buyer confidence, it won’t have a lasting impact on costs or prices.
Property owners are losing their personal property rights over the properties they have bought and paid for because our government stopped building government-supplied affordable housing in the late 80s and early 90s. As a result, the government is now taking away the rights of hard-working and law-abiding citizens to solve this issue with an authoritarian governing style.
They have gone so far as to implement rules where family no longer takes priority over tenants for living accommodations and have capped allowable rental rate increases to the point that no rental can afford to be properly maintained. This has already led to, and will continue to lead to, more sales of rental units, resulting in fewer rental units available on the market in the long run. This type of policy—freezing rates while costs are rising rapidly—never leads to positive outcomes. They are even removing the ability to increase rents between new tenants, preventing landlords from catching up with costs. This will force many rental owners to become the dreaded ‘slumlords’ through no fault of their own. Most will likely sell their rental units to avoid this, causing new rental units to be extremely expensive and older, more affordable ones to disappear from the market altogether, creating a further rental shortage than exists today.
Towns in our province that rely on tourism to support their local businesses, thus their economy will suffer immensely from the short term rental ban. In addition to the hotel industry coming back and giving
them the ability to increase prices with no alternatives for the public.
All of this uncertainty caused mostly by government interference has led to yellow lights for about 70% of the Lower Mainland and Fraser Valley combined. Green lights are in 4 small pockets and should still be watched closely with dynamic of change happening around us today.
As we close with this final issue, we urge you to do your research, study the history of BC and ensure you vote and have your say in our next provincial leaders this October.
Regards, and all the best.
Jamie Squires
Jamie Squires
President & Managing Broker
Fifth Avenue Real Estate Marketing LTD.
Jamie@fifthave.ca
Proud Peerage Realty Partner
OVERALL MARKET SUMMARY
In this final edition of the Fifth Dimension for 2024, 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.
Q1 — New Home Market
Metro Vancouver’s new home market kicked off 2024 with a sluggish start, a departure from the positive momentum observed in late 2023. First-quarter sales experienced a 15 percent decline from the previous quarter and a 22 percent drop from the five-year quarterly average. With no initial rate decreases by the Bank of Canada to inaugurate the new year, developers and buyers alike are closely monitoring the market, anticipating the first decrease to occur in the summer of 2024. Consequently, project launches have been limited, except in the Townhome market, where many projects are nearing construction completion and further delays in release are no longer feasible. Despite the cautious climate, there is a growing optimism that market conditions will improve, prompting many developers to prepare new inventory for the coming year, awaiting the opportune moment. Nonetheless, projects continue to extend previewing periods to assess the market, offering incentives such as mortgage payment relief and low deposit structures to entice buyers in the current market landscape.
A total of 21 new projects representing 1,937 units were introduced during the quarter, a substantial decline from the 40 new projects consisting of 5,431 units released in the Fourth Quarter of 2023. A total of 2,713 new home sales were recorded during the First Quarter of 2024, which is a 27 percent increase in sales volume when compared to the same quarter of 2023. There were 10,933 released and unsold units remaining at the end of the First Quarter. This
reflects an eight percent increase from the previous quarter and a 47 percent increase from the same quarter last year. Additionally, there were 1,709 completed unsold new multi-family homes available at the end of the First Quarter, marking a 38 percent increase from the previous quarter and a 76 percent increase from the same quarter last year.
A total of 1,310 High Rise sales were recorded in the First Quarter of 2024: a 32 percent decrease from the previous quarter but two percent higher than the same quarter last year. High Rise sales accounted for 48 percent of new home sales during the quarter. There were 6,998 released and unsold High Rise units available at the end of the First Quarter, a five percent increase from the previous quarter and a 33 percent increase year-over-year. The majority of High Rise sales occurred in the Tri-Cities (421 sales), Central Surrey/ North Delta (369 sales), and Burnaby/New Westminster (328 sales) market areas, as they combined for 85 percent of all High Rise sales during the quarter. Over the quarter, there were four new High Rise projects launched, releasing 1,073 units into the market. Notable sales activity occurred at Beedie’s Encore (Coquitlam), Juno by Streetside Developments (Surrey City Centre), North Tower of Reign by Wesgroup (Metrotown), the South Tower of Town & Centre by Mosaic (Coquitlam Town Centre), and Etoile Gold by Millennium Development (Brentwood).
The 807 new Low Rise condominium sales recorded in the First Quarter of 2024 were 18 percent lower than the previous quarter but 51 percent higher than the number sold in the same quarter last year. Low Rise sales constituted for 30 percent of all new homes sales this quarter. During this period, three new projects launched, adding a total of 419 units to the market, which contrasts with the 13 new project launches in the previous quarter, releasing 1,197
units. The 2,498 released and unsold units at the end of the First Quarter represents a 10 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 426-unit sales in the First Quarter. Notable sales activity across Metro Vancouver’s Low Rise condominium sector was observed at Ledgeview II by Quadra Homes (Surrey City Centre), Botanica by Qualex-Landmark (Burquitlam), Building 4 of Highstreet Village (Abbotsford West), the first building of Quadra Home’s Walnut Park (Yorkson), The Commons by Zenterra (Willoughby Heights), and Scale by Scale Projects (Langley City).
A total of 596 new Townhome sales were recorded in the First Quarter of 2024, marking a 92 percent increase from the previous quarter and an 86 percent year-over-year increase. There were 1,437 released and unsold Townhome units at the end of the First Quarter, an eight percent increase from the previous quarter and 47 percent higher than the same quarter last year. During the quarter, 14 new Townhome project launches were observed contributing 400 units to the market. This marks an increase from the previous quarter, where 11 projects were launched, releasing a total of 406 units. Positive sales activity was observed at Partington Creek by Polygon (Burke Mountain), Cascadia by Streetside Developments (Willoughby Heights), Provenance by Polygon (Maple Ridge), Aquilini Development’s Boardwalk 6 (Tsawwassen), and The Loop by Gramercy Developments (Grandview Heights).
OVERALL MARKET SUMMARY
Q1 — Resale Market
A total of 2,173 newer multi-family homes were resold in the First Quarter of 2024. This total is 31 percent higher than the previous quarter and a five percent increase compared to the same quarter in 2023. When comparing activity across product sectors, High Rise, Low Rise, and Townhome re-sales were 16, 37, and 48 percent higher, respectively, when compared to the previous quarter. Year over year, the High Rise market experienced a decrease of two sales while the Low Rise and Townhome sectors experienced increases of four and 15 percent, respectively. Overall, active listings increased by 59 percent when compared to the previous quarter and increased by 58 percent when compared to the same quarter last year. Active listings for High Rise, Low Rise, and Townhome products each experienced an increase of 48, 67, and 75 percent, respectively, when compared to the Fourth Quarter of 2023.
Observations and Opinions
At the time of publication, the Bank of Canada has maintained its overnight lending rate at five percent for the sixth consecutive announcement. While there are growing expectations that we will see the first interest rate decline since March 2020, the Bank of Canada is proceeding cautiously to ensure that any rate cut won’t undermine the progress made toward taming inflation over the last two years. Many developers are closely observing the shifting market dynamics, resulting in limited project launches this year, with nearly 3,500 fewer units observed this quarter compared to the previous one. However, despite the slower activity, there have still been instances of sales success. Similar to the past three quarters, projects that are competitively priced with more affordable entry points, situated in desirable or transit oriented communities, offering longer completion times, and featuring reduced deposit structures as low as five percent, have experienced success. The most notable locations where sales activity remains elevated is Central Surrey/ North Delta and the Tri-Cities. These two market areas accounted
for half of the overall new home sales totals in Q1-2024. Despite the success of these product types, high borrowing rates continue to strain buyers entering the current market landscape and present challenges for developers selling move-in ready properties, which have reached a five-year high of nearly 1,700 completed units. Consequently, the rental market remains strong, with vacancy rates hovering at all-time lows and rental rates reaching record highs.
Notable projects that could launch in the Second or Third Quarter of 2024 include: Vancouver Downtown – Anthem’s Park; Vancouver West – Pennyfarthing’s Slate and Ash, Intergulf’s Kinsley, Careston Properties’ Enzo, Western Construction’s Oaklyn; Vancouver East – Hudson Projects’ Naimo; Burnaby/New Westminster –Boffo Properties’ Bassano & Tower 1, Anthem’s Ethos, Shokai Development’s Metro 21, Wanson Group’s Nido, Domus Homes & Platform Properties’ Mercer Village; North Shore – SwissReal Group & Brimming Development’s Pierwell; Tri-Cities – Qualex-Landmark’s Ironwood, Onni Group’s Pine & Glen, Beedie’s Chapter, Vansoho & Quad City Limited Partnership’s KSANA, Marcon’s Soenhaus, Wanson Group’s Portico, Northstar Development‘s Porthaven; Richmond/South Delta – Headwater Projects’ Bridge & Elliott; South Surrey/White Rock – Alvair Group’s Crestview, Hive Development’s Elisa, Mortise Group of Companies’ Pinnacle, Cressey‘s Rockford; Central Surrey/North Delta – Bosa Properties’ Parkway 2, Darshan Builders’ Parksville 96, Concord Pacific’s Piano, Maskeen Group’s Victory, Amson Group‘s Amson Block, Genaris Properties’ Stowa, Solterra‘s Vivere, Platinum Group’s Liberty Encore , Isle of Mann’s Abigail, Realco Properties’ Scott + 77; Langley/Cloverdale – ML Emporio Properties’ Azure Grove, Essence Properties’ Jericho Crossing, Sync Properties’ Marilyn on the Park, Zail Properties’ Aviva, Conwest’s Leah, Essence Properties’ Eastin Townhomes, Wesmont Homes’ Saxon Park, Castlehill Homes’ Renfrew; Abbotsford/Mission – Diverse Properties’ Sage, Redekop Faye’s Montgomery, Heinrich Developments’ Scout; Ridge-Meadows – Bolt Construction’s The Warwick, Woodlock Developments’ Everwood.
Sales Comparison Totals Q1-2024
Resale Market Totals Q1-2024
807 1,310
596
NEW MARKET SUMMARY
VANCOUVER DOWNTOWN
The Vancouver Downtown market area has maintained its “Yellow Light” status for the First Quarter of 2024. Sales volume experienced a modest decline, dwindling from 37 to 32 transactions, marking a 14 percent decrease compared to the previous quarter. This decline is attributed to limited inventory availability and steep price points, straining sales activity in the downtown area. The majority of sales in this sector are tied to a single project, with minimal sales occurring elsewhere. The market area saw an overall absorption rate of seven percent with all sales coming exclusively from the High Rise sector. Presently, there are 56 move-in ready units available, and developers are incentivizing buyers with promotions such as GST discounts and credits to facilitate the sale of the remaining inventory. The sales activity in the downtown market is expected to remain consistent heading into the Second Quarter of 2024.
New Market Highlights
Curv, Brivia and Henson Group’s 358-unit High Rise achieved a total of 144 sales, accounting for 23 new sales over the First Quarter of 2024, at an overall blended price of $2,600 per square foot
Brenhill’s 35-storey High Rise, 8X On The Park, sold its last remaining two units over the quarter and is now sold out after being on the market since mid-2016
1335 Howe, a 40-storey High Rise by Onni reported five new sales over the quarter, with 46 move-in ready units remaining
Mirabel by Marcon sold the last penthouse unit over the quarter and now has only one unit available left in the project
**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.
RESALE MARKET SUMMARY
VANCOUVER DOWNTOWN
Average sales values per square foot have increased by $102 when compared with the First Quarter of 2023 for High Rise product
The number of High Rise listings had a minimal increase of one while High Rise resales decreased by six when compared to the First Quarter of 2023
For High Rise condominiums, the average per square foot sales values of one and two bedroom units increased by $88 and $150, respectively, when compared to the First Quarter of 2023
The months of supply for resales in the High Rise market has increased from 14.0 months to 15.2 months when comparing to the same quarter last year
The sales range has decreased by $37,500 on the lower end but increased by $311,667 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 36 days when compared to the First Quarter of 2023
MLS Resale by Unit Type
MLS Resale Highlights
NEW MARKET SUMMARY
VANCOUVER WEST
For the First Quarter of 2024, Vancouver West will maintain its “Yellow Light“ status. During this period, the market area witnessed 87 sales during the quarter, marking a 26 percent decrease from the previous quarter, with an overall absorption rate of nine percent. The quarter saw the introduction of three new projects, releasing a total of 89 units, with only 22 percent of these units being absorbed. The newly launched projects experienced limited sales activity due to their premium pricing strategy, aimed at a niche luxury demographic, thus narrowing the pool of potential buyers. Both the High Rise and Low Rise sectors experienced declines in sales of 37 percent and 74 percent, respectively, while the Townhome sector saw a 48 percent increase. 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
Ashleigh, by Petterson released their six-storey concrete condominium in early January and achieved 10 sales with a blended price per square foot of $1,700
Adore at 49th, Killarney Group’s 64-unit Low Rise achieved 10 sales by the end of the First Quarter of 2024
Stanton Development released Willow Walk, their 20-unit townhome project in mid-February and reported 10 sales at an overall average price of $1,462 per square foot
West Wind at Lelem Townhomes, a 58-unit townhome project by Polygon Homes, continues their strong sales campaign with 16 new sales at an overall price per square foot of $1,339
The Hillcrest by Vertex Developments sold out at an overall price per square foot of $1,489 after selling their remaining two units throughout the quarter
Kinsley at Queen Elizabeth Park, a 55-unit Townhome project by Intergulf is expected to be launched in mid-April
RESALE MARKET SUMMARY
VANCOUVER WEST
Total listings and resales have increased by 141 and 31, respectively, when compared to the First Quarter of 2023
The average time a unit is on the market has increased for High Rise, Low Rise and Townhome product by 23, 32, and two days, respectively, when compared to the First Quarter of 2023
Average price per square foot sales values for High Rise and Low Rise units have decreased by $1 and $46, respectively, while Townhomes increased by $89 over the past four quarters
Two bedroom High Rise and Low Rise product saw a decrease of $50 and $79, respectively, in average price per square foot sales value when compared to four quarters ago
The sales range has increased by $72,000 on the lower end and increased by $173,000 on the higher end when compared to the First Quarter of 2023 for High Rise product
The Townhomes sales range has decreased by $59,800 on the lower end and decreased by $401,100 on the higher-end over the past four quarters
MLS Resale Statistics (Product 10 Years of Age or Less)
MLS Resale by Unit Type
MLS Resale Highlights
NEW MARKET SUMMARY
VANCOUVER EAST
For the First Quarter of 2024, the Vancouver East market area maintained its “Yellow Light” status. The market area recorded a total of 109 sales, marking a four percent decrease compared to the previous quarter. The overall absorption rate saw a slight dip from 12 to 11 percent during this quarter. Notably, the High Rise sector stood out with 51 sales, constituting 47 percent of the total sales. These sales were largely driven by three projects within the same masterplan, showcasing strong activity for communitycentric projects. Conversely, the Low Rise condominium sector experienced a 17 percent drop in sales due to a lack of new inventory. To stimulate sales, developers continued to offer incentives such as reduced deposit structures. Only one project was launched in the market area during this period, introducing 50 new units to the market, with 12 units absorbed. High price points remained prevalent, dampening the interest of potential buyers seeking entry into the housing market.
Market Highlights
Wesgroup’s Harlin, a 204-unit High Rise in the River District Masterplan led all projects with 16 total sales at a blended price per square foot of $1,200
Ardea & MODE, part of Wesgroup’s River District Masterplan accounted for 15 and 10 sales, respectively, over the First Quarter of 2024
Gemini Mount Pleasant by Georgia Pacific Holdings Corp. is expected to relaunch their sales campaign of 18 move-in ready homes into the market over the Second Quarter of 2024
The second phase of The Cut by Fabric Living released 50 Townhomes into the market, selling 12 units at a blended price per square foot of $1,274
Joyce by Westbank sold the final remaining unit, resulting in the project selling out at a blended price per square foot of $1,322 after launching their sales campaign in mid-2017
Eliot at Norquay by R.A.R. Holdings Ltd. sold six units over the First Quarter of 2024, leaving one move-in ready unit remaining in the project.
VANCOUVER EAST RESALE MARKET SUMMARY
The average time a unit is on the market has increased for Low Rise and Townhome units by 23 and seven days, respectively, while High Rise units decreased by 13 when compared to the First Quarter of 2023
Average price per square foot sales values for High Rise, Low Rise, and Townhome units increased by $33, $95, and $39, respectively, when compared to the same quarter last year
The months of supply for resales in the Low Rise market has increased from 5.0 months to 7.1 months when compared to the same quarter last year
The average price per square foot in a Low Rise increased for a one bedroom and two bedroom unit by $50 and $146, respectively, when compared to the First Quarter of 2023
Total listings have increased by 142 while resales saw a decrease of one when compared to the First Quarter of 2023
The average price per square foot for a two bedroom Townhome increased by $133 while a three bedroom Townhome has decreased by $26 since the First Quarter of 2023
Resale Statistics (Product 10 Years of Age or Less)
MLS Resale by Unit Type
MLS Resale Highlights
NEW MARKET SUMMARY
RICHMOND/SOUTH DELTA
The Richmond/South Delta market area will maintain its “Yellow Light” status in the First Quarter of 2024. At the outset of the New Year, there was a slight downturn in purchaser activity, with 133 sales—a 16 percent decrease from the previous quarter. New project launches have slowed, with only one reported, adding 19 units to the market area. Sales in this region have primarily been driven by the Townhome sector, especially in South Delta, where 76 Townhomes were sold, constituting 57 percent of total sales in the market area. Meanwhile, High Rise and Low Rise units continue to face challenges, with absorption rates of three percent and 18 percent, respectively. 538 unsold move-in ready units were reported by the quarter’s end, largely due to high interest rates impeding completed product movement. Developers are responding by offering specialized incentives aimed at alleviating mortgage payments to stimulate buyer activity.
Market Highlights
Pakland Homes released NorthGate Residences, a 19-unit Townhome development located in the Bridgeport area in Richmond. The units were released in early February and is blending at an overall price of $981 per square foot
The condos at West Coast Estates by Executive Group led all Low Rise sales in the market area with 14 sales over Q1-2024 at an overall blended price of $800 per square foot. The project offered discounts of $25,000 on their two bedroom homes and a reduced deposit structure of 10 percent
Onni’s development in Tsawwassen, Tsawwassen Landing, led all Townhome sales in the market area as it sold out its remaining units over the First Quarter of 2024 with 31 sales after being on the market since Fall of 2018
Aquilini Developments saw activity in their Boardwalk community as their Low Rise building, Salt And Meadows 3 achieved 12 sales over the First Quarter of 2024 and 16 Townhome sales were observed at Boardwalk 6
Ladner has seen Townhome absorption over the quarter as Polygon’s Westhampton at Hampton Cove achieved 13 sales at an overall blended price of $684 per square foot
**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
RESALE MARKET SUMMARY
RICHMOND/SOUTH DELTA
Total resales have increased from 339 to 420 when compared to the First Quarter of 2023
The High Rise sales range has increased by $28,000 on the lower end and increased by $40,000 on the higher-end when compared to the same quarter in 2023
The sales range of Townhomes increased by $14,900 on the lower end but decreased by $800 on the higher-end when compared to the First Quarter of 2023
Average per square foot sales values of High Rise and Townhome units increased by $56 and $20, respectively, while Low Rise units experienced no change when compared to four quarters ago
Price per square foot sales values for one bedroom High Rise and Low Rise units have increased by $39 and $64, respectively, over the past four quarters
The average sales price of a two bedroom Townhome increased by $278,392 while it decreased by $44,146 for a three bedroom Townhome when compared to the First Quarter of 2023
MLS Resale Statistics (Product 10 Years of Age or Less)
MLS Resale by Unit Type
MLS Resale Highlights
NEW MARKET SUMMARY
BURNABY/NEW WESTMINSTER
The Burnaby/New Westminster market area has been classified as “Yellow Light” for the First Quarter of 2024. During this period, the market saw 348 sales, marking a 45 percent decrease from the previous quarter. Buyer activity has waned as both buyers and developers closely monitor market conditions as the market area saw an absorption of 10 percent of the total inventory. Consequently, there were limited project launches, with only two releases adding 378 units to the market area. High Rise condominiums remain the predominant product type, constituting 94 percent of total sales. Projects with longer completion times continue to attract sustained buyer interest compared to those with shorter timelines or already completed units. This trend is illustrated by the presence of 510 move-in ready homes at the quarter’s end, marking a 200-unit increase from the previous quarter. Developers are offering incentives to bolster buyer activity, and there is growing optimism for the future, with many developers anticipating improvements in interest rates in the coming months.
Market Highlights
The first tower (South Tower) of Reign by Wesgroup located in Metrotown saw 16 sales over the quarter as the High Rise reached 56 percent absorption. With the sales success achieved, the second tower (North Tower) was released in mid-March adding 357 units into the market area. The North Tower has achieved more than 100 sales at the time of publication at an overall blended price of $1,350 per square foot
Eunoia Homes released a 21-unit Townhome development, The Idyllic, in February 2024. The project achieved three sales at an overall blended price of $1,043 per square foot and has accounted for all the Townhome sales achieved over the quarter in this market area
Millenium Development’s Brentwood Tower, Etoile Gold, led all High Rise sales in the market area with 87 sales over the First Quarter of 2024 with a blended price per square foot of $1,360
Brentwood Tower 6, Shape Properties’ High Rise in Brentwood has reached a total of 80 percent of its total inventory absorbed accounting for a total of over 290 units sold
Riviera, Ledingham McAllister’s Metrotown High Rise tower is now 50 percent sold as it achieved 34 sales over the quarter. The project has been offering three percent credit and a reduced deposit structure for their homes
Bosa Properties’ Metrotown tower, Solhouse 6035, achieved 25 sales over the First Quarter of 2024. The developer is offering a rental revenue program giving buyers the option of having secured rental income for 24 months
RESALE MARKET SUMMARY
BURNABY/NEW WESTMINSTER
Total listings have increased by 257 but total resales have decreased by 41 when compared to the First Quarter of 2023
The average per square foot sales values of High Rise and Low Rise units have increased by $2 and $66, respectively, but decreased by $36 for Townhome units when compared to the First Quarter of 2023
The sales range of High Rise product increased by $9,000 on the lower end and increased by $7,000 on the higher-end when compared to the First Quarter of 2023
Compared to the First Quarter of 2023, the average price per square foot of one bedroom High Rise and Low Rise unit has increased by $3 and $51, respectively
The average sales price per square foot of a two bedroom High Rise unit decreased by $9 but increased by $51 for a Low Rise unit over the past year
The average sales price of a two bedroom Townhome increased by $34,204 while it decreased by $53,636 for a three bedroom Townhome when compared to the First Quarter of 2023
MLS Resale by Unit Type
MLS Resale Highlights
NEW MARKET SUMMARY
NORTH SHORE
The North Shore market area will maintain its “Yellow Light” status for the First Quarter of 2024, having recorded a total of 84 sales during the period, which marks a 13 percent decrease from the previous quarter. Notably, the Townhome sector demonstrated strength with 33 sales, a significant increase from five sales in the previous quarter, representing 39 percent of total sales. This surge was driven by an increase in supply due to two new project launches. Conversely, the High Rise sector experienced a 63 percent decline in sales, while the Low Rise sector saw a four percent increase. This reduction in sales can be attributed to a lack of new inventory, compounded by high price points and projects temporarily halted for construction. The market area observed an overall absorption rate of 17 percent, reflecting a four percent decline from the previous quarter.
Market Highlights
Wall Financial Corporation released their 48-unit Townhome project, The Trails, in Lower Lonsdale in mid-March and achieved a total of 10 sales at an overall blended price of $1,052 per square foot
Morrison Walk by Creo Developments, a 70-unit Townhome community commenced sales in late February and released 17 units. The project achieved five sales at an overall price per square foot of $1,215
Elle, Polygon’s High Rise in Central Lonsdale recording nine sales over the quarter at an overall blended price of $1,515 per square foot
Ashton, by Fairborne Homes, led sales for the Low Rise sector after reporting 25 new sales throughout the quarter
Anthem resumed sales of their Townhomes at Baden Park and sold nine homes over the quarter at an overall price per square foot of $935
*Note that the large sales range is due to the price differences observed in West and North Vancouver.
RESALE MARKET SUMMARY
NORTH SHORE
There were 207 total listings, an increase by 47 when compared to the First Quarter of 2023
Compared to the First Quarter of 2023, the average time a unit is on the market has decreased for High Rise and Townhome units by 21 and 33 days, respectively, while it increased by 12 days for Low Rise units
The average per square foot sales values for High Rise and Townhome units increased by $61 and $56, respectively, but decreased by $78 for Low Rise units when compared to the First Quarter of 2023
The sales range increased by $58,100 on the lower-end but decreased by $116,900 on the upper-end for Low Rise product since four quarters ago
Two bedroom High Rise product increased in per square foot sales value by $35 but no change was experienced for a two bedroom Low Rise unit when compared to the First Quarter of 2023
The average sales price of a two bedroom Townhome decreased by $262,429 and for a three bedroom Townhome, it decreased by $9,431 when compared to the First Quarter of 2023
MLS Resale Statistics (Product 10 Years of Age or Less)
MLS Resale by Unit Type
MLS Resale Highlights
NEW MARKET SUMMARY
TRI-CITIES
For the First Quarter of 2024, the Tri-Cities market area is set to maintain its “Green Light” status, despite a decrease in total sales to 670, representing a 27 percent drop compared to the previous quarter. Buyer activity remains robust, particularly in projects offering competitively priced and communityfocused products. A notable example is the second tower within a masterplan, which launched during the quarter and achieved 90 percent absorption, driving a significant portion of High Rise transactions.
The Townhome sector experienced increased buyer activity with a 27 percent uptick in sales from the previous quarter. This surge can be attributed to an increase in supply, with developers initiating projects that were previously withheld, as homes near completion and become ready for occupancy. The two projects that launched added 76 units to the market area and achieved an impressive absorption rate of 80 percent. Sales growth is anticipated to continue in the coming months as developers release more products into the market area, particularly in the Low Rise sector, with multiple launches already planned, including the first Low Rise buildings within a masterplan.
New Market Highlights
Beedie’s Fraser Mills masterplan continued with the launch of the second tower Encore, a 32-storey, 306-unit High Rise building. The project saw 246 total sales at a blended price per square foot of $1,100
Chapter, Beedie’s first Low Rise building of their Fraser Mills masterplan is expected to be released in the Second Quarter of 2024
The South Tower of Town & Centre by Mosaic achieved 107 sales over the First Quarter of 2024 at a blended price per square foot of $1,100
Qualex-Landmark released the second building of Botanica and achieved 139 total sales with 84 sales occurring over the quarter
Partington Creek by Polygon Homes, a 148-unit Townhome community in Burke Mountain, released 64 units in February and achieved 56 sales at a blended price per square foot of $690
Samer, a 23-unit Townhome community in Burquitlam by Domus Homes released 10 units in late January and achieved five sales at an overall blended price of $940 per square foot
Terrayne by Townline continued to have strong absorptions in the new year with 12 new sales over the First Quarter of 2024
RESALE MARKET SUMMARY
TRI-CITIES
Compared to the First Quarter of 2023, sales increased for Low Rise units and Townhomes by two and 19, respectively, while it decreased for High Rise units by 25
Total listings have increased by 131 when compared to the same period last year
The average sales value per square foot for High Rise, Low Rise, and Townhome units increased by $6, $21, and $39, respectively, when compared to the First Quarter of 2023
The lower end sales range for High Rise, Low Rise, and Townhome units have increased by $5,000, $43,000 and $119,800, respectively, when compared to the same quarter last year
The average sales price per square foot of a one bedroom High Rise and Low Rise unit have increased by $6 and $33, respectively, when compared to the First Quarter of 2023
The average sales price of a two and three bedroom Townhome increased by $49,708 and $72,249, respectively, when compared to the First Quarter of 2023
MLS Resale by Unit Type
MLS Resale Highlights
NEW MARKET SUMMARY
RIDGE MEADOWS
The Ridge Meadows market area will keep its “Yellow Light” status for the First Quarter of 2024, reflecting a shift driven by the introduction of zero new projects during the quarter. Total sales in this market area increased by 12 percent to 57 transactions over the quarter. Notably, the Low Rise sector witnessed the most significant drop, with sales plummeting by 59 percent to just 13 transactions. Conversely, the Townhome sector saw an increase in sales, rising by 132 percent to 44 total sales. A rate of 16 percent of all inventory being absorbed was observed throughout the quarter. Many ongoing projects in this market area have temporarily paused their sales campaigns, awaiting construction completion 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
Provenance by Polygon, a Townhome project in Maple Ridge accounted for the most sales in the quarter with 31 units absorbed
The Falls – Kanaka Springs a 165-unit townhome project by Epic Homes launched in early October and achieved 15 total sales to date at a blended price per square foot of $600
Alterra Development Group’s City and Laurel, a six-storey, 100-unit low rise sold five units over the First Quarter of 2024 at an overall price per square foot of $783
Windfall a 54-unit townhome project by Gatehouse Design + Developments has one remaining unit within the project
The North at Point Haney, a 67-unit Low Rise condominium project by Falcon Homes achieved five new sales at an overall price per square foot of $783
RESALE MARKET SUMMARY
RIDGE MEADOWS
Total listings and resales have increased by 136 and 47, respectively, when compared to the First Quarter of 2023
The average sales value per square foot for Low Rise units and Townhomes increased by $65 and $46 since the same quarter last year
The average sales price of a one bedroom Low Rise unit increased by $21,323 and it increased by $33,258 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 $2,000 and the upper bound increased by $135,000 compared to the same period last year
The sales range has increased by $62,100 on the lower end and increased by $120,000 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 $70,615 over the past year
MLS Resale by Unit Type
MLS Resale Highlights
NEW MARKET SUMMARY
SURREY CENTRAL/NORTH DELTA
The Central Surrey and North Delta market area retained its “Green Light” status for the First Quarter of 2024, witnessing a notable 21 percent increase in total sales, rising from 563 to 681 sales. Buyer engagement has been prominent in new project launches characterized by competitive pricing and low deposit structures, driving heightened transaction volume and allowing first time home buyers to enter the market. Two project launches were observed during the quarter, introducing 660 new units to the market area and achieving an impressive 64 percent absorption rate. All three sectors experienced robust sales activity, with High Rise sales increasing by 35 percent, Townhomes by 49 percent, and Low Rise showing minimal change with a one percent increase. Competitive pricing, extended completion timelines, and future community amenities have contributed to significant investor interest, particularly in comparison to projects located north of the Fraser River. Anticipation remains high for sustained buyer activity in this market area, with numerous projects scheduled for launch in Spring 2024.
Market Highlights
Juno, a 34-storey 341-unit High Rise by Streetside Developments launched in Q1-2024 and achieved 238 total sales. This project offered a favorable 10 percent deposit structure
Landa Global Properties’ Lucent sold the remaining 48 units over the quarter and is now sold out, achieving a blended price per square foot of $1,017
Sequoia, ML Emporio Properties’ High Rise in Surrey City Centre achieved 37 sales over the quarter. The developer offered incentives of credit of up to $60,000, no assignment fees, and a reduced deposit of 7.5 percent
Quadra Homes launched Ledgeview II, a 319-unit Low Rise project across two buildings in mid-March. The project achieved 183 sales at an overall average price per square foot of $890 while offering a five percent deposit
Dawson + Sawyer’s fourth and fifth building of Fleetwood Village II sold out over the quarter. The developer will now be looking to release the sixth building, a six-storey 119-unit building, in the Second Quarter of 2024
Bosa Properties will be launching their second tower of the Parkway masterplan in April 2024, a 52-storey, 396-unit High Rise in Surrey City Centre
RESALE MARKET SUMMARY
SURREY CENTRAL/NORTH DELTA
Total listings and resales increased by 237 and 43, respectively, when compared to the First Quarter of 2023
The months of supply for resales in the Townhouse market has increased from 3.3 months to 5.6 months when compared to the same quarter last year
The months of supply for resales in the High Rise and Low Rise market increased by 2.1 and 0.6 months, respectively, when compared to the First Quarter of 2023
The per square foot sales value have increased for High Rise, Low Rise, and Townhome units by $23, $25 and $42, respectively, 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 $37 and $13, respectively, over the year
The average two bedroom Townhome saw an average sales price decrease of $13,557 while it increased for a three bedroom Townhome by $53,415 when compared to the same period last year
MLS Resale Highlights
NEW MARKET SUMMARY
SOUTH SURREY/WHITE ROCK
The South Surrey/White Rock market area has been upgraded to “Green Light” status for the First Quarter of 2024. With a total of 106 sales, the market experienced a remarkable 308 percent increase from the preceding quarter. The Townhome sector has been particularly active, representing 53 percent of all total sales in the area. This surge can be attributed to the introduction of three Townhome launches, adding 102 new units to the market. Increased supply and competitive pricing, especially for units under one million, have facilitated greater buyer activity in this sector. While High Rise and Low Rise condominiums also saw modest increases in sales by 17 and 11 units respectively, they suffer from a lack of new inventory. The market achieved an overall absorption rate of 32 percent for the quarter. Looking ahead to the Spring and Summer of 2024, sales activity is expected to remain robust as more projects are scheduled for release, coupled with growing optimism about improving market conditions.
Market Highlights
Chelsea, Streetside Development’s final phase of their South Surrey Townhome masterplan, The Boroughs, was released in early 2024. The project had an initial release of 29 units and achieved 17 sales at the end of the First Quarter of 2024 at an overall blended price of $656 per square foot
PCC Homes released their 50-unit Townhome development in South Surrey, Glenmont, in March 2024. The project achieved five sales at the end of the quarter at an average blended price of $682 per square foot
Fox and Aikins South, Park Ridge Homes’ second release of Fox and Aikins, launched their sales campaign in March 2024 and added 43 Townhomes into the market area. At the end of Q1-2024, three sales have been achieved at an overall blended price of $690 per square foot
The third tower of Foster Martin, The Landmark, by Landmark Premiere Properties in White Rock led all High Rise sales in the market area with 16 sales over the quarter
The Loop, Gramercy Development’s Townhome development in South Surrey achieved 12 sales over the First Quarter of 2024
Zenterra’s Low Rise development, King + Crescent, led all Low Rise sales in the market area as it achieved 17 sales across its four Low Rise buildings over the quarter
SOUTH SURREY/WHITE ROCK
When compared to the same quarter last year, the total number of listings increased by 69 while resales decreased by four
The months of supply for resales for High Rise, Low Rise, and Townhome product has increased by 0.2, 4.6, and 1.7 months, respectively, when compared to the First Quarter of 2023
Average per square foot sale values for High Rise, Low Rise, and Townhome units increased by $121, $37, and $23, respectively, when compared to the First Quarter of 2023
High Rise products has seen an increase in average days spent on the market, averaging five more days on the market while Low Rise products saw a decrease of 18 days when compared to the First Quarter of 2023
One and two bedroom Low Rise units saw an increase in average price per square foot on sold units by $17 and $43, respectively, over the past year
Two bedroom and three bedroom Townhomes saw an increase in average sales price by $22,218 and $46,689 when compared to the same quarter last year
MLS Resale by Unit Type
MLS Resale Highlights
NEW MARKET SUMMARY
LANGLEY/CLOVERDALE
The Langley/Cloverdale market area maintained its “Yellow Light” status in the First Quarter of 2024, with an 18 percent increase in overall sales from 219 to 259 transactions. Sales activity has been steadily rising as developers continue to introduce inventory in the Low Rise and Townhome sectors. Two new project launches were observed during the quarter, adding 112 new units to the market and achieving a 39 percent absorption rate. Successful projects typically feature low entry price points and reduced deposit structures, making them more accessible for first-time homebuyers and investors. Townhomes experienced the most significant surge in sales, with a 305 percent increase in activity and a 56 percent absorption rate for the quarter. Sales momentum is expected to further increase as developers release more inventory into the market, particularly Townhomes as construction nears completion and delays become less feasible.
Market Highlights
Scale by Scale Projects’ 75-unit Low Rise building located in Langley City launched in early March 2024 and achieved 24 total sales at a blended price per square foot of $860
The first building of Walnut Park by Quadra Homes achieved a total of 107 sales, accounting for 59 sales over the First Quarter of 2024
The Commons by Zenterra released their second building adding 115 more units to the market area. The project achieved 59 sales over the quarter while offering incentives such as a reduced deposit structure of five percent
Zenterra’s Townhome project, Newbury, led all Townhome sales in this market area with 21 sales over the quarter
Streetside Development’s 231-unit townhome project, Cascadia, launched in early March and sold 20 units out of the 37 units released at an overall price per square foot of $648
Azure Grove by ML Emporio Properties, two Low Rise building comprising of 273 total units, is anticipated to launch in late April 2024
High Rise
Rise
RESALE MARKET SUMMARY
LANGLEY/CLOVERDALE
Resales for Low Rise product increased by eight and Townhome product increased by 20 when compared to the First Quarter of 2023
Total listings increased by 143 when compared to the same quarter last year
The sales range increased by $95,000 on the lower-end and increased by $136,500 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 $43 and $36, 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 $30 and $46, respectively, when compared to the First Quarter of 2023
Since the First Quarter of 2023, the months of supply for Townhome product has increased from 1.2 months to 2.2 months
MLS Resale Statistics (Product 10 Years of Age or Less)
MLS Resale by Unit Type
MLS Resale Highlights
NEW MARKET SUMMARY
ABBOTSFORD/MISSION
The Abbotsford/Mission market area maintains its “Green Light” status for the First Quarter of 2024, despite achieving 142 total sales, representing a 29 percent decrease from the previous quarter. However, the market area achieved a commendable 35 percent absorption rate, indicating continued buyer activity. Projects in this area are still characterized by affordability and lower entry price points compared to other market areas. Low Rise homes continue to attract the most buyer interest, contributing to 70 percent of total homes sold. With growing optimism about improving market conditions, developers are expected to introduce additional inventory into the market area, as many more project launches are announced for the coming months of 2024. Consequently, buyer interest is anticipated to either sustain or increase, facilitated by a combination of new project launches and the release of additional units within masterplan communities in upcoming phases, catering to various buyer types entering the market.
Market Highlights
Building 4 of AB Wall’s condominiums at Highstreet Village masterplan sold out of all 65 units at a blended price per square foot of $772
Grovemont, a 190-unit Townhome project by the Mann Group near Sumas Mountain launched in late January and sold 11 units in the first release at an overall price per square foot of $423
Redekop Faye’s Silver and Cedar, a 96-unit low rise project continued to perform strongly with 76 total sales and 28 sales over the quarter
Jem by Quanterra Developments Ltd achieved nine new sales over the quarter for a total of 16 sales at an overall price per square foot of $665. All homes are move-in ready for this project
RESALE MARKET SUMMARY
ABBOTSFORD/MISSION
Total listings and resales increased by 63 and 45, respectively, when compared to the First Quarter of 2023
Over the past four quarters, the lower bound of the sales range for Low Rise product has decreased by $29,400 and decreased by $14,500 on the upper bound
Price per square foot sales values for Low Rise condominiums and Townhomes are up by $43 and $14, respectively, from the First Quarter of 2023
The average days spent on market for Low Rise units decreased by five days while it increased by five days for Townhomes when compared to the same quarter last year
The average Low Rise sales price per square foot for one and two bedroom condominiums has increased by $48 and $72, respectively, when compared to the same quarter in 2023
The average sales price per square foot for two bedroom and three bedroom Townhome has increased by $16 and $11, respectively, when compared to the First Quarter of 2023
MLS Resale by Unit Type
MLS Resale Highlights
LOOKING BACK & AHEAD
Looking Back
The first quarter of the year definitely had a slower start than most anticipated, especially considering the increases in sales volumes and values in the final quarter. This quarter is starting to feel the effects of new communist-style policies from our provincial leaders, who claim we need more homes and are in a housing crisis while pushing policies that will only make homes more expensive or reduce the number that can actually be built. It is very obvious that our current governments at the municipal, provincial, and national levels have zero financial or budgeting skills, ability, or even a basic comprehension of economics and how homes are built.
the Lower Mainland, which is, in fact, lowering or removing inventory from the market when the purpose of all these changes was to gain more supply.
Looking Ahead
As we enter the second quarter of 2024, we can only hope for some slight relief if the Bank of Canada announces a decrease to the prime rate this June. This may help instill some consumer confidence for a short period afterward; however, it will not solve any of the dilemmas imposed by new government policies.
5 million people in the long run? Will we realize we are headed down the same path. Where no one is important, simply because everyone is important, so all become poor and starve together like they did, and every other country across our globe that has tried this before throughout history or are we going to be forced to repeat it in Canada today by naive voters in the lower mainland?
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.
Who is going to buy the pre-sales necessary to fund the construction of all the new homes our government wants built when no one wants to buy because of the policies they have implemented? If the sales do not happen, the construction loan is not funded, and the units are not built. Projects are already being put on hold in the Okanagan and now
Will the people notice their rights being removed and vote for change this fall? Or will we follow the example of Russia under Marxism where it was promised that the workers would rise, destroy capitalism, and create a socialist society under the leadership of the Communist Party of the Soviet Union where these types of policies ended up killing over
GUILDEN: 1, 1 + DEN & 2-BEDROOM CONDOMINIUMS IN GUILDFORD, SURREY!
EVERWOOD: 3 & 4-BEDROOM TOWNHOMES IN SILVER VALLEY, MAPLE RIDGE!
SOKANA: STUDIO TO 3-BEDROOM RESORT-STYLE HOMES IN PENTICTON!
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 (Formerly Urban Analytics) (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.