Surrey Pre sale condo

Still Building Still Selling Offshore

Steve Saretsky -

Foreign Investors Now Targeting Surrey Pre Sales

It wouldn’t be a typical day in Vancouver real estate without another debate over supply. The latest numbers out from UDI (Urban Development Institute) highlights new construction is far outpacing population growth. Metro Vancouver’s net population change was down 11% from the same quarter last year and down 26% from the five year average. Further, The current ratio of 1.3 new residents per housing start is well below the five year average of 2.1 new residents per housing start.

Metro Vancouver population growth
Metro Vancouver population growth. Source: UDI

This should come as little surprise to those who have been reading this blog. There’s plenty of evidence to suggest we have been overbuilding the last few years. Including an Avalanche of New Supply Under Construction, the most on record.

Despite the record building, prices continue to soar as our promised new supply hits the open market in Hong Kong. Offshore investors desperate to park cash into global real estate are snatching up Vancouver pre sale condos at a torrid pace. The tax exempt pre sales are even being snatched up in Surrey. The latest Includes Concord Pacific’s Park Boulevard development.

Surrey pre sale condo
Surrey’s Park Boulevard being sold in Hong Kong sales centres.

A crippling blow to the city of Surrey, griped with house lust, where prices have now shot up 27% year over year and inventory has plunged a remarkable 60%.

Join the Monday Newsletter

Every Monday morning you'll receive a short and entertaining round-up of news on the Vancouver & Canadian Real Estate markets.

"*" indicates required fields

The Canadian Economy

Steve Saretsky -

Happy Monday Morning! We got a string of new data this past week confirming inflation in consumer goods, and housing are proving to be more than transitory. Canada’s consumer price index continued to drift higher with prices hitting an 18 year high, up 4.7% from last October. The recent floods in BC...

Steve Saretsky -

The calls for impending interest rate hikes continues. CIBC’s chief economist, Benjamin Tal, was out recently suggesting the Bank of Canada could hike its benchmark interest rate at least six times beginning in early 2022. “I think there is a risk of getting into the market at today’s rates,” noted Tal....

Steve Saretsky -

The BC Government announced it is looking at several cooling measures for the housing market in 2022. They have highlighted two measures. The first is an end to the blind bidding process, and the other is a mandatory “cooling off period” which will allow any buyer a 7 day recession...

Steve Saretsky -

The Bank of Canada continues to slowly drain liquidity after flooding the system with a firehose of cash during the pandemic. Bank of Canada governor Tiff Macklem announced the end of Canada’s QE program (also known as money printing). Furthermore, in Macklems words, “We expect to begin increasing our policy...

Steve Saretsky -

Consumer price inflation ripped higher in September, surging 4.4% year-over-year, the fastest pace of price increases in 18 years. Let’s discuss this further. We have an inflation problem and the Bank of Canada remains of the view that inflation will be transitory. Although they really can’t say otherwise, for if...

Get the Saretsky Report to your email every month

The Saretsky Report. December 2022