Zonda Urban’s exclusive data for the Q4-2023 multi-family market indicates that Vancouver buyers are finally coming out from hibernation.
In the fourth quarter of 2023, 3,210 new residences were sold, up 20 per cent from the previous quarter and 58 per cent from the same period the year before. While overall pre-sale activity increased in late 2023, higher sales were facilitated by more projects being released to the market in the fourth quarter.
Forty projects were started in Q4-2023, totaling 5,431 newly released inventory units, of which 38 per cent were reported sold at the end of the year. The projects with competitive pricing and potential community placements (such as Debut) saw the most buyer engagement in the fourth quarter of 2023. Wesgroup’s Reign (Metrotown), Beedie’s Debut (Fraser Mills), and Intergulf’s Burquitlam Park District (Burquitlam) high-rise projects experienced increased sales activity.
In the low-rise sector of the market, strong sales were also observed in Whitetail Homes’ Gabriel (Langley), Dawson + Sawyer’s Guildford the Greatest (Surrey), AB Wall’s Highstreet Village Building 3 (Abbotsford), and Anthem’s MTN Village (Squamish) in the final quarter of 2023.
One of the more notable highlights of Metro Vancouver’s new home market in Q4-2023 was the greater proportion of investor purchasers relative to end-user purchasers. For example, concrete condominium sales were the highest on record over the past seven quarters and represented 60 per cent of new home sales in Q4. Conversely, the 311 new townhome sales recorded in the fourth quarter represented only 10 percent of new home sales.
According to current trends, buyers are looking for projects with closing dates longer than one or two years, and they appear to be growing more confident about the direction in the coming years. Higher sales activity is projected to persist into 2024 as more buyers hoping for significant price reductions give up and enter the market.
