Condo crisis? Analyst warns of massive Metro Vancouver presale drop-off

A B.C. real estate market analyst is sounding the alarm about a steep drop-off in condo and townhouse presales.

“We knew there was something going on, but when we saw the final numbers we were pretty shocked,” said Michael Ferreira, managing principal with Urban Analytics.

The company recently crunched regional data for 2019 and found a 60-per cent drop in new condo and townhouse units coming to market.

Looking at highrise construction only, the dip was even steeper: 76 per cent.

While Metro Vancouver appears to be a forest of towers under construction to the eye, Ferreira said the impact of the presale slide is currently hidden.

That’s because presale units usually take about three years to reach completion — meaning a cut in new supply will be felt down the road.

“The concern for the lack of new supply that was added to the market last year isn’t necessarily this year or next year, but into 2022 when those units would be completing,” he said.

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