JANUARY 2024 PRESALE REPORT: EARLY SIGNS OF LUNAR NEW YEAR MOMENTUM

For individuals engaged in dynamic ventures, December might have seemed like a time when the real estate market took a hiatus, trading "For Sale" signs for festive wreaths and seasonal ornaments. Nevertheless, amid this seasonal lull, notable project unveilings persisted, showcasing robust market engagement.

An exemplary instance is Mosaic's Town & Centre, which commenced sales activity in early December. This development promptly garnered attention, securing over half of its inventory (approximately 130 units). Its success can be partly attributed to its distinct positioning within the market landscape, representing the first opportunity to invest in the Coquitlam Centre area in six years, thus generating considerable anticipation.

Likewise, the introduction of South Yards (Tower B) by Anthem made a subdued yet significant impact on the market. Despite its understated launch, it achieved a commendable 70% sales rate of its available inventory. The triumph of these initiatives underscores their strategic introduction in markets with minimal direct competition, enabling them to distinguish themselves and effectively attract prospective buyers.

This emerging pattern suggests that even during typically sluggish periods in real estate, meticulously positioned and eagerly awaited projects can attain notable sales figures, challenging the conventional notion of the holiday season as a dormant phase in the property market.

REAL ESTATE IN 2024: FORECASTING MARKET TRENDS FOR THE UPCOMING YEAR

As we step into 2024, the real estate market stands at a critical juncture, presenting both obstacles and prospects. The year ahead is anticipated to be a litmus test for developers and prospective homebuyers alike, yet there is a sense of optimism regarding the long-range trajectory, indicating potential growth in the residential sector.

Interest rates will continue to be a focal point of discussion, with numerous economists predicting multiple cuts, ranging from 3 to 4, throughout the year. However, the reliability of these prognostications is somewhat uncertain. While a decrease in rates is foreseeable, the extent and timing of such adjustments remain ambiguous.

Although rate reductions might influence market sentiment, their tangible impact on affordability is subject to debate, given the persistent disparity between buyer willingness and seller expectations. Some degree of price exploration is anticipated, particularly in areas with infrequent property transactions or limited new launches in recent months.

Despite the obstacles confronting the market, there exists a prevailing understanding among potential buyers that factors such as robust immigration and escalating construction expenses are poised to sustain upward pressure on property values in the medium to long term. Consequently, it is expected that presale activity will maintain its vigor throughout the upcoming year.

PRESALE MARKET SEES MODERATE START TO THE YEAR 

Three presale initiatives are projected for January, introducing a total of 785 units to the market. Among these launches are Soenhaus by Marcon and Piano by Concord Pacific, with the latter being a highly anticipated concrete tower scheduled to debut in Downtown Surrey towards the end of January.

While market uncertainty may linger until there is greater clarity regarding the trajectory of interest rates, there is a noticeable uptick in marketing efforts leading up to the Lunar New Year. Anticipate further updates on Grosvenor’s Brentwood Block, Streetside’s Juno, and Qualex-Landmark’s Ironwood.

SOURCE: MLA CANADA