5 Presales – Metrotown In Burnaby Is The Focal Point Of The Presale Condo-World

5 Presales – Metrotown In Burnaby Is The Focal Point Of The Presale Condo-World At a Glance

Several high-profile pre-sale condo projects by big-name developers have recently launched or are set to launch shortly in Burnaby’s Metrotown neighbourhood in Metro Vancouver. The five projects, which include Citizen by Anthem Properties, Riviera by Ledingham McAllister, Reign (South Tower) by Wesgroup, Solhouse 6035 by Bosa Properties, and Greenhouse by Concord Pacific, are all located within walking distance of the Metropolis at Metrotown shopping centre and total just under 1,600 units. While there are risks associated with pre-sales, developers may feel the need to start recouping costs and time to absorb all their inventory. The Metrotown area may also see another wave of launches in the future.

Both parties have received final approval recently, which could lead to another round of competition in the near future.

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The Metrotown neighborhood in Burnaby has become a focal point in the pre-sale condo market, with five major projects recently launching sales or about to do so in Metro Vancouver.

While pre-sales do carry risks, those who are comfortable with these risks and looking to enter the market are now turning their attention to Metrotown. This bustling neighborhood has garnered attention due to a collection of high-profile projects by renowned developers that have either recently been launched or are set to debut soon.

These projects include Citizen by Anthem Properties, a massive 66-storey tower situated on 4663 Kingsway. Riviera by Ledingham McAllister is another notable development, with its striking 38-storey tower located on 496 Bennett Street. Wesgroup’s Reign (South Tower) stands tall at 35 storeys and can be found on 628 Willingdon Avenue. Bosa Properties is making a mark with their 50-storey Solhouse 6035 on Wilson Avenue, while Concord Pacific’s 43-storey Greenhouse on Barker Avenue completes the lineup.

All five projects are conveniently within walking distance of the Metropolis at Metrotown shopping center and in close proximity to one another. In total, nearly 1,600 units will hit the market simultaneously. (For those looking beyond Metrotown, City of Lougheed Tower Three by Shape Properties, Icon by Ledingham McAllister, and Etoile Gold by Millennium Development also join the pool of Burnaby launches.)

It’s worth noting that all five projects have been in the planning stages for an extended period. Proposals were initially submitted to the City of Burnaby over three years ago, with some even dating back over five years.

“It is quite unusual and surprising to see all these projects launching simultaneously while the market is still somewhat uncertain,” says Suzana Goncalves, EVP of Sales and Marketing for MLA Canada.

Developers must gauge sufficient market demand to achieve their pre-sale targets, typically around 60% to 65%, in order to secure construction financing within 12 months. However, there comes a point where waiting may not be an option. Developers may have active construction teams or a desire to start recouping costs.

Goncalves highlights that Anthem Properties, with its extensive experience, is among the most active developers in uncertain conditions. Wesgroup, with two towers planned for their Metrotown site, may have the motivation to kickstart at least the first tower. Ledingham McAllister, on the other hand, began construction on their development a couple of years ago and may have felt the need to recoup costs and clear inventory.

A sixth project, Metro21 by Shokai, originally intended to launch around the same time, has been delayed until next year. The decision to postpone may have been driven by the presence of several big-name players entering the market simultaneously, prompting a strategic move to capture attention as a new shining object in the new year.

In terms of price points, the Metrotown area generally ranges from $1,225 to $1,450 per square foot, positioning it within the medium-to-high range compared to Metro Vancouver as a whole. Riviera and Reign fall toward the lower end of this spectrum, while Concord and Bosa lean towards the higher end.

While Goncalves points out that there is no immediate precedent for this cluster of launches in Burnaby, other areas like Surrey City Centre and West Coquitlam have witnessed competing towers. However, the concentration of this many units within a 15-minute walking radius, as seen in Metrotown, is relatively uncommon.

Nonetheless, the uniqueness of the Metrotown area lies in the possibility of experiencing another wave of development. Just since June of this year, proposals for a three-tower project by Peterson Group and a 33-storey development by OpenForm Properties have emerged within the same 15-minute radius. Meanwhile, Anthem’s 34-storey tower on Marlborough Avenue and the multi-tower second phase of Concord Pacific’s Metrotown community has recently received final approval, foreshadowing another round of head-to-head competition in the near future.

Summary

The Metrotown neighborhood in Burnaby, Vancouver is the center of attention in the pre-sale condo world. Five major projects by well-known developers have recently launched or are set to launch in the area. These projects, including towers by Anthem Properties, Ledingham McAllister, Wesgroup, Bosa Properties, and Concord Pacific, are all within walking distance of each other and the Metropolis at Metrotown shopping center. Combined, they add up to nearly 1,600 units entering the market at the same time. This concentration of launches in such a specific location is uncommon for Burnaby. The projects have been in the works for several years but are being released amidst uncertain market conditions.

Developers aim to meet pre-sale targets to secure construction financing within a year. While the timing may seem unusual, developers like Anthem Properties and Wesgroup have the experience and resources to proceed confidently. Prices in the Metrotown area range from $1,225 to $1,450 per sq. ft, with some projects leaning towards the lower end and others towards the higher end of the spectrum. This cluster of launches in the Metrotown area may not be the last, as there are already proposed projects and approved developments that could lead to further competition in the future.

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