Multi-family land acquisition totals across B.C.’s Lower Mainland tilted south of the Fraser River during the last year, although the fourth quarter showed signs of a return to Vancouver’s core as the pandemic’s grasp loosens.
According to Zonda Urban’s Q4-2021 Metro Vancouver Residential Land Report, the total dollar amount of multi-family land sales increased 24 per cent year-over-year in sub-markets north of the Fraser River, while transaction volume rose 74 per cent in sub-markets south of the river.
However, the fourth quarter reversed the year-long trend, as the total value of multi-family residential land sales in northern sub-markets rebounded strongly, up 107 per cent from the previous quarter ($714 million) for a total of $1.47 billion.
“This marks the highest quarterly sales total since the third quarter of 2018 and the fifth highest total since Zonda Urban began tracking this metric in the first quarter of 2016,” said the report.
After setting an all-time high of more than $450 million during the previous quarter, total transaction dollar volume in southern sub-markets decreased by 39 percent in the fourth quarter, although sales volume remained nine per cent above the four-year average.
Among northern sub-markets, Richmond/South Delta and Tri-Cities saw approximately $600 million in transaction volume during 2021, more than doubling their totals from 2020. Burnaby and North Vancouver also doubled their sales totals from the previous year.
Despite a modest increase in Vancouver West — which led all sub-markets with over $924 million in sales — year-over-year totals dropped a combined 28 per cent in the three Vancouver sub-markets. Downtown Vancouver saw the biggest decline, plunging 49 per cent with approximately $600 million in transactions during 2021 after nearly $1.2 billion during the previous year.
Each sub-market south of the Fraser River saw transaction volume increase year-over-year, led by Central Surrey/North Delta with more than $576 million.
“The largest year-over-year percentage change in sales dollar volumes occurred in the Langley/Cloverdale sub-market; 116 percent or $295 million year-over-year,” the report said.
Zonda also noted an ongoing transition from higher to lower density land sales, specifically investment in low rise-designated properties, which rose 87 per cent year-over-year, an increase of more than $1.1 billion. Townhome-designated land sales were also up 83 per cent from the previous year.
“The shift from higher to lower density designated sites being acquired has continued as low rise and townhome site sales accounted for a combined 61 per cent of sales over 2021 compared to 43 per cent during 2020,” the report said.
