Metro Vancouver Expected to See Nearly 100 Presale Launches in 2023
After seeing 76 presale project launches in 2022, Metro Vancouver can expect to see 95 in 2023, according to a forecast by MLA Canada, a Vancouver-based real estate services and sales firm.
According to its 2023 Intel Report, MLA Canada says most of the presale launches we saw in Metro Vancouver last year were predominantly in the Burnaby and Coquitlam submarkets, which have the appeal of being well-serviced by transit connections to Downtown Vancouver.
“The presale market saw a wave of activity over the first quarter of 2022 as developers responded to heightened demand from buyers wishing to lock in home purchases before rates rose,” MLA Canada said. “Many purchasers were swept up in the feeling that ‘now’ was the time to buy and, in large part from low resale supply, turned to the presale market.”
As a result, MLA Canada says nearly half of all presale sales in 2022 occurred in just Q1 alone.
Once the Bank of Canada started what would eventually become a series of eight interest rate increases (and counting), presale launches started to slow down, with developers and those looking to buy both taking a further step back in the second half of the year to reassess.
MLA Canada says that developers wanted to make sure that they would achieve strong early absorptions before entering the market, while prospective buyers were also more selective. There were still successful projects, however, with same-month absorptions at over 40% in October and December, which MLA Canada describes as “relatively elevated” and were higher than most of Spring and Summer 2022.
Read the full article HERE