A wave of condo completions expected before the year’s end could boost home sales in the Lower Mainland, a new report suggests.
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MLA Advisory, the research branch of condo-marketing firm MLA Canada, forecasts contractors will finish work on more than 9,000 multi-family homes before the end of 2019.
Researchers outline a few effects these completions may have on the region’s housing market, including the resale segment.
“This needed new housing stock will undoubtedly spark some market activity at all levels,” says Suzana Goncalves, a partner at MLA Canada.
MLA Advisory notes that there might be a higher number of detached homes changing hands as some who purchased pre-sale condos in 2016 get ready to downsize.
Condo inventory could also rise as investors sell their units.
Meantime, the region’s drum-tight vacancy rate could ease as investors who don’t sell begin renting out their condos.
“Although we have seen significant taxes introduced in our market and stricter mortgage regulations not predicted at time of purchase, almost all of these homes were originally sold several years ago with 20 per cent deposits or higher,” the report reads.
While builders reach construction milestones, condo sales offices are getting busier.
MLA predicts Lower Mainland developers will launch sales this September for 15 multi-family encompassing 1,039 presale units.
That’s up from the four developments, including 254 units, that launched in August, one of the quieter months for the new-home market.
“A number of projects opened their doors for private previews in hopes of generating strong interest for the coming fall market,” according to the report.
“As stated in previous reports, preview periods continue to be extended, making it difficult to predict sales launch dates, a trend we expect to continue.”