What’s been happening in Vancouver’s multi-family market in the first half of 2017? Real estate analytics and advisory group MLA Advisory has released it’s mid-year review. Here’s a recap of the multi-family market trends and an outlook for the rest of 2017.
Foreign Buyer Tax: One year later
Vancouver’s housing market showed signs of slowing before the 15-per-cent Foreign Buyer Tax was introduced back in August of 2016, but MLA Advisory reports that the sales-to-active listings ratio is back to pre-intervention levels.
A major contributor to the rising ratio is the lack of inventory on the resale market, particularly for condo units. Vancouver is currently experiencing a 10-year low in supply, which is in turn creating strong demand for all pre-sale product types across all markets. Strong demand, coupled with constricted supply levels due to slow municipal approvals, have contributed to price increases in all markets for the first half of 2017 in the Lower Mainland.
MLA Advisory also reports a shift in the number of single-family home sales against the number of condo and townhome sales over a two-year period (refer to the graph above). Sales of single-family homes steadily decreased from January to July 2016, until the Foreign Buyer Tax was introduced on Aug. 2, 2016. Since the new tax took effect, detached homes accounted for 30 to 35 per cent of sales, while attached homes (including condos and townhomes) represent approximately 70 per cent of the total home sales in Greater Vancouver.
A peek at pre-sales
Pre-construction sales in Greater Vancouver saw an 88-per-cent sold rate in the first quarter of 2017, and 82 per cent in the second quarter. It’s all thanks to limited supply coming to market, says MLA Advisory.
But that could change in the coming months, if planned projects are all released. See the pie chart to the right for releases and forecast.
Top 5 most-active markets in Greater Vancouver
Burnaby, Coquitlam, North Vancouver, Richmond and Vancouver were the ﬁve most-active markets in the first half of 2017, with more than 2,950 new condo and townhome units.
What’s in store for the rest of 2017? MLA Advisory says you can expect to see more than 8,770 pre-sale homes popping up here, adding much-needed supply to Greater Vancouver.
While Burnaby had a slower ﬁrst half of the year, it is anticipated to have the most supply, with 4,000-plus new attached homes. Upcoming projects to watch out for include Sussex, Juneau and Arcola.
Interestingly, the most active townhome market is North Vancouver, with 260 units and 10 projects coming soon.