Residential Real Estate Report Q3

New Vancouver Multi-Family Residential Sales Buoyant Despite Global Economic Pessimism

-- Colliers International’s residential real estate report indicates 2,315 units sold in the Third Quarter 2011 – a 40 percent increase over the same quarter last year --

Vancouver, October 20, 2011 – A Colliers report on new multi-family home sales in the Lower Mainland market reports that 2,315 new multi-family units sold during the quarter – a significant 40 percent increase over the same quarter last year. Adding to strong First Quarter results and astounding Second Quarter results the Third Quarter figures bring total sales year to date to 9,681 units or 108 percent of the total for all 2010.

Scott Brown, Senior Vice President, Colliers’s residential group said, “The quarterly results surpassed our prediction for the quarter. Notably, this number was achieved in a climate of uncertainty regarding what the rejection of the HST means for consumers and amidst growing concern regarding the global economy.”
The report also noted first time buyers were active and responding to developer incentives in sub markets in the Fraser Valley while Asian immigrant end users continued to be active in select areas such as UBC, Metrotown, Richmond and South Surrey.

“Since the end of First Quarter Colliers has stated that 2011 sales would likely exceed 12,000 new units for the year. Given Third Quarter results and the planned launches for the Fourth Quarter this total is highly probable,” Brown commented. Historically, the Third Quarter tends to be the least active and the Fourth Quarter tends to be the strongest. “This year we think that this is unlikely to hold true due to the incredible absorption in the Second Quarter. That said, we are expecting the momentum to continue through the Fourth Quarter provided the uncertainty with respect to the HST and global economies do not negatively impact consumer confidence in a significant way,” Brown added.

The report also cites that product priced between $525,000 and $1 million that completes prior to February 2013 will continue to be hit hardest by the uncertainty over the HST and calls on the government to provide greater clarity on this matter.

A full copy of the report entitled MarketShare is available on request.

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