Developers across British Columbia are significantly increasing incentives and offering steep discounts to attract buyers amidst a growing inventory of unsold properties. This shift in the market dynamics means that potential homebuyers now hold considerable power, able to shop around for the best deals as developers compete fiercely for their attention.
Key Takeaways
- Developers are implementing aggressive sales tactics, including flash sales and substantial discounts, to move stagnant inventory.
- Buyers are highly informed and cautious, prioritizing certainty and value over flashy marketing gimmicks.
- Elevated inventory levels, particularly in Metro Vancouver, suggest that prices may soften further and incentives could become even more aggressive.
Developers Offer Deep Discounts and Incentives
In Kelowna, Mission Group recently held a one-day flash sale for its completed Alma on Abbott development, offering significant price reductions on remaining units. Luke Turri, president of Mission Group, acknowledged the need to "meet the market where it's at," noting that buyers are seeking certainty amidst fluctuating interest rates and construction delays.
Realtors confirm the trend, with Coquitlam Realtor Adil Dinani stating that buyers "won't even step inside your display suite... if the price or incentive doesn't earn their attention." Developers are responding with a variety of promotions, from covering a year of living expenses (interest, strata fees, property tax) to offering luxury car giveaways with purchases. However, Dinani cautions that buyers are discerning and "not falling for the fluff."
Rising Inventory and Buyer Caution
The Association of Interior Realtors reported elevated active listings in October, comparable to 2024 levels but well above the 10-year average. In Metro Vancouver, the Canada Mortgage and Housing Corporation estimates around 2,500 unsold new condos, a figure projected to rise. This surplus is expected to drive further price reductions and more aggressive incentive programs in the coming year.
Pre-Sale Strategies and Market Challenges
Even in the pre-sale phase, developers are adapting. Apcon Group in Surrey launched a promotion offering up to $50,000 off for the next five sales at its upcoming development, The Interchange, alongside deals on air conditioning and flexible deposit structures. Balraj Rai, Apcon's marketing manager, highlighted the importance of affordability and accessibility in the current market.
However, the market's softness has led to significant challenges for some. The Belvedere condo project recently went under creditor protection, partly due to buyers walking away from their purchases. Despite a previous 25-per-cent-off flash sale that moved many units, the project still faces financial difficulties.
Despite these headwinds, developers like Mission Group and Apcon remain optimistic about the long-term market outlook, banking on the fundamental appeal of their projects and hoping for a market turnaround by the time their developments are completed.
