Metro Vancouver condominium developers are apparently brushing off warnings of overbuilding, with a series of new towers beginning pre-sales this month. Many of the new high-rise projects appear aimed squarely at real estate investors.
According to MPC Intelligence (MPC), which tracks new home construction in the region, more than 8,000 new concrete condominiums could start this year, the highest level in more than a decade. In the first half alone, 3,800 units began preselling in 19 separate projects.
MPC reports that up to 65 per cent of the new inventory has already been sold. “It's fair to say that the majority of buyers have been Asian investor segments looking for quality product,” said MPC senior manager Jeff Hancock. He is forecasting, however, that average new high-rise condo prices could fall about 10 per cent this year, partially due to developers pricing to lure investors and first-time buyers.
Examples of investor-friendly, pre-sale prices are seen at Rize Alliance’s Wave, a 500-unit, twin-tower project in North Surrey, where two-bedroom condos are priced from $209,000; and Salient Group's new 20-storey Trapp & Holbrook tower in downtown New Westminster where 100 of the 196 condos will be priced under $300,000.
