APRIL 2024 PRESALE REPORT: THE MARKET FINDS MOMENTUM

March saw a significant increase in presale launches compared to the previous year. In 2024, the early months showed robust activity, in contrast to the slow start experienced in 2023, which only picked up momentum in the summer. This year, March followed historical patterns more closely, with a steady stream of presale projects entering the market. A total of 11 projects were launched, introducing 1,552 units, a remarkable threefold increase from March 2023. Sales in March 2024 reached 416 units, achieving a 27% absorption rate.

Noteworthy launches in March included Wesgroup’s second tower at Reign in Metrotown, which attracted considerable interest, selling about 80 homes within 45 days, equating to 22% of its total inventory. Another standout was Ledgeview in Surrey City Centre, which sold 200 units, approximately 63% of its available units. This project's appeal was bolstered by its competitive price per square foot at $850 and a modest 5% deposit requirement, making it a highlight of the month's presale activity.

WHOSE POLICY IS IT ANYWAYS? ANALYZING THE EFFECTS OF POPULATION GROWTH ON RENTAL PRICES

Canada's recent immigration policy shift, setting a flat target for 2026 and reducing temporary resident intake, aims to tackle the correlation between population growth and housing and infrastructure pressures. Traditionally, immigration has driven demand and economic vitality in Canada, contributing to more consistent growth. However, the nation now grapples with a housing crunch, evident in inflated prices and limited availability, particularly in areas like Metro Vancouver where rental rates surged to 9.5% in 2023.

To alleviate housing strains, the government has taken steps such as capping international student numbers and tightening work permit criteria. These actions reflect a broader attempt to balance population growth with housing availability. Yet, adjusting immigration levels alone won't solve rental affordability issues without stimulating new construction. A comprehensive policy approach spanning housing, infrastructure, and healthcare is crucial.

WILL APRIL SURPASS EXPECTATIONS?

April is poised to continue the momentum from March. According to MLA Advisory, there are forecasts for ten project launches, offering a total of 1,996 homes. This would mark the second-highest number of home releases in a month since July 2022. The Fraser Valley leads this surge with seven projects in the lineup. Notable launches include Parkway (Building 2) by Bosa Properties and Amson Bloc by Amson Group in Surrey. Parkway initiated sales from late March to early April and aims for a gross blended price per square foot in the mid- to high-$1,100s range. Amson Bloc, comprising two buildings on the border of Panorama and Sullivan Heights, began previews in early April. It boasts custom interior millwork, zebra blinds, and over 3,600 square feet of indoor amenities.