Development Timelines and True Construction Costs at the Forefront of Real Estate Intel Report
VANCOUVER, British Columbia, Feb. 01, 2019 (GLOBE NEWSWIRE) — MLA Canada has released its annual Market Intel real estate report, highlighting last year as a pivotal point in the Greater Vancouver real estate market. The 2019 report by MLA Canada’s Analytics and Advisory group analyzes the outgoing year, trends, current market conditions and provides a forecast for the year ahead.
The report includes major economic trends locally, interprovincially and internationally. Surprising data from the report includes a breakdown of the true cost of a home, the rapid rise of construction cost, as well an inside look at City approval timelines and purchaser and population insights.
“BC’s fundamentals remain stronger than elsewhere in the country. This means pressures on our housing market will continue, particularly with population increasing and housing starts declining.” says Cameron McNeill, Executive Director and Partner at MLA Canada. “We must be progressive in our solutions to provide housing – the long-term viability of our cities depend on it,”
With Canada ranked the #1 country in the world for quality of life this month by US News & World Report, it’s no surprise that the population in BC is expected to increase steadily, with almost 50,000 new residents landing in our province in 2019. With job opportunities remaining high compared to other provinces, interprovincial migration will likely remain constant over the next three years. As housing starts are expected to decline in Metro Vancouver over the coming two years, this adds pressure to the housing market.
Approval timelines continue to be a major factor in appropriately addressing the demand for housing in Metro Vancouver. Vancouver, Burnaby, and the District of North Vancouver remain the municipalities with the lengthiest project approval timelines, close to two years. Also, over the past five years, construction costs have risen nearly 50 per cent, on average, which is absorbed downstream by the consumer.
“2019 is expected to be highly competitive, but an overall balanced market with nominal price escalation will provide purchasers with choice and value,” shares Suzana Goncalves, Chief Advisory Officer and Partner at MLA Canada. MLA Intel predicts 13,975 pre-sale units will be released in 2019, up from 11,584 in 2018.
The 2019 Market Intel report outlines Global real GDP percent growth and Provincial real GDP percent growth. It examines the true cost of a home along the Cambie Corridor, dissecting everything from land cost to property taxes. The report also examines HPI price growth and public policy changes.
2017 was an unsustainable and rapid market, not likely to be experienced at similar levels for several years, if ever. 2018 was a transition year, as the market turned from an extreme sellers’ market to a more normalized and fairly balanced one. The pace witnessed in late 2018 will continue into 2019. Benchmark prices will remain stable overall, being pushed and pulled based on a variety of variables dependent on the neighbourhood. The result will likely be net increases of 0-2 per cent, with projects taking nine months to hit pre-sale targets and selling until completion. Primary end-users will again comprise the bulk of buyers, enjoying more selection and time to find true value.
To view the full MLA Advisory Market Intel 2019, please visit: https://mlacanada.com/intel
ABOUT MLA CANADA
MLA Canada, McNeill Lalonde & Associates, is an established market leader, offering distinctive real estate services to developers. As Canada’s most comprehensive real estate marketing, sales, and lease-up organization, we are poised to redefine the industry with robust services and systems for the betterment of clients and the markets we work within. Tailored experiences are offered for every product type, from single family up to large, mixed-use, masterplan communities, while adherence to a structured development lifecycle ensures project success from beginning to end. We embrace technology, progressive methodology, and in-depth forecasting.
ABOUT MLA ADVISORY
MLA Advisory is powered by a dedicated team of advisors and industry-leading professionals with outstanding sales and marketing experience and proven results. They tirelessly analyze market trends and study consumer demand to best position our client’s portfolio. MLA Advisory’s scope of services delivers tremendous value, from acquisitions to sales execution, and is comprised of comprehensive market intelligence, product envisioning and design, including unit mix, floorplan, amenity programming, and strategic price analysis.
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