Developers have patiently awaited the opportunity to launch new presale developments in the City of Surrey, and early indications suggest that we may be on track for a record-breaking year in terms of the total number of condo projects and units being brought to market.
There are currently 11 condominium projects, totaling just over 3,300 homes, set to enter the market during the first half of 2024, with several more cautiously awaiting an opportunity to join.
Juno by Streetside Developments brought a sense of renewed optimism to the Surrey City Centre market to begin the year, reporting over 50 percent of the product sold within the first few weeks of launching. The sales program was one of the strongest we've seen introduced in Metro Vancouver in years, leading with an ultra-low 10 percent deposit, which is completely unheard of for a concrete product. Investors were motivated by the low deposit structure coupled with the 4-year completion timeline, which aligns with the market's expectations that interest rates will be much lower upon completion.
In the context of pricing comparisons with the broader Metro Vancouver market, Juno unquestionably stands out as one of the most competitively priced concrete options in the region. This factor significantly bolstered its success and garnered strong support from the investor community.
Developers took notice of this achievement and have stepped up their early marketing campaigns for various prominent projects set to be released for sale in the first half of 2024.
High-Rise Projects Anticipated to Launch Early 2024:
Surrey City Centre
- Juno by Streetside Developments: 341 units | 34-storeys
- Parksville 96 by Darshan Builders: 377 units | 34-storeys
- Parkway 2 (Intersect) by Bosa Properties: 396 units | 52-storeys
- Piano by Concord Pacific: 1,014 units | 33 & 40-storeys
- Georgetown Three by Anthem Properties: 455 units | 39-storeys
Total: 6 high-rise towers comprising 2,583 units.
Low-Rise Projects Anticipated to Launch Early 2024:
Surrey City Centre
- City Corners by Zenterra Developments: 100 units | 6-storeys
- Stowa by Genaris Properties: 77 units | 6-storeys
- Victory (Phase 1) by Maskeen: 216 Units | 6-storeys
Guildford/Fleetwood
- Fellow by Tangerine Developments: 152 units | 6-storeys
- Fleetwood Village (Building 6) by Dawson Sawyer: 116 units | 6-storeys
Newton/Panorama
- Amson Bloc by Amson Group: 121 units | 5-storeys
Total: 6 low-rise buildings comprising 782 units
The presale market in the City of Surrey (and throughout most of Metro Vancouver) is driven by local investors aiming to build wealth. These investors, consisting of individuals, partners, or families, are motivated by financial growth. With respect to the buyer profile in the City of Surrey, the South Asian, Chinese, and Filipino communities form a significant majority within this active investor group.
In recent years, the South Asian community has emerged as one of the most influential buyer groups in the Fraser Valley market. Their purchasing behavior is primarily motivated by a profound understanding of local market dynamics. This community acknowledges the continuous growth in housing demand, driven by the City of Surrey's annual influx of thousands of new residents.
Similar to the Filipino community, their ability to acquire insider information regarding the goals and aspirations of family or friends provides them with the knowledge needed to make well-informed and confident decisions regarding real estate investments.
Additionally, there is a second generation of Surrey residents, like myself, entering their prime years for purchasing real estate. Surrey isn't merely a secondary choice for us; it's our primary preference, whether for our main residence or investment ventures. It's where we conduct our daily lives, both professionally and personally. Given its expansive land area, Surrey provides young professionals and couples with a plethora of options, including different property types and neighborhoods that cater to diverse lifestyles.
Surrey has often been perceived as an underdog city compared to other areas of Metro Vancouver. While media coverage tends to focus on negative headlines typical of secondary suburban markets with immigrant-driven populations, local residents have quietly embraced a young, vibrant and diverse culture.
The City of Surrey has the youngest population in Metro Vancouver, with nearly 40 percent of its population under the age of 29, and 25 percent under the age of 19. This data underscores the youthfulness of this city.
Surrey is Metro Vancouver's most affordable city for presale projects, drawing demand from both locals and investors from other areas. Its promising infrastructure and investment landscape offer attractive long-term growth potential.
I believe that in the coming years, demand will surge in the Tri-Cities, Surrey, and Langley due to their affordability compared to previously high-demand areas like Vancouver and Burnaby.
The Tri-Cities, Surrey, and Langley each possess distinct characteristics, attracting a diverse range of demographics seeking unique opportunities, thus ensuring activity and growth in all three markets.
Focusing on Surrey, its transit-friendly location, affordability, population and job growth, and economic investment prospects will contribute to the city's overall long-term success.
Real estate investors seek catalysts that contribute to investment growth, and the City of Surrey boasts some of the strongest prospects in the region:
- Surrey-Langley Skytrain Extension anticipated to complete in 2028
- Simon Fraser University Medical School - second medical school in the province (UBC) and first in Western Canada in over 50 years
- University of British Columba Surrey campus - $70 million acquisition of 3-acre parcel near Surrey Memorial Hospital - with over 3,500 students and 750 faculty who already call Surrey home, a Surrey expansion only made sense.
- City's investment into state-of-the-art community centres and schools throughout the city
- Expansion of the Downtown Core to include a mix of new hotels, office, and retail
- Pro-development city council and staff
- Its position as Canada's fastest growing city
Over time, the presale investor community grows more sophisticated through insights gleaned from past purchases, discussions with peers and family, and overall knowledge expansion. Coupled with an increasing amount of new development being planned for the City, understanding the needs and motivation of this investor class will play a pivotal role in the future success of well-positioned projects.
If you're keen on exploring opportunities in Surrey, Langley, or the Tri-Cities, don't hesitate to reach out for a discussion.
