The hidden costs of building new condos in the Vancouver real estate market are mounting as the region’s population grows, with the city’s real estate industry reeling from the construction of new homes and the loss of jobs.
In fact, there are about 8,500 condominium units under construction in the Greater Vancouver area, according to data compiled by the BC Real Estate Council.
The city is the largest developer of new condos, and is one of the first cities to start issuing new condo units, said David Charette, president of the BC Realtors Association.
It is the first time since the 1980s that the number of new condominiums has risen in the city.
In 2016, the City of Vancouver announced it would be issuing about 3,400 new condos a year.
But the demand for condominium housing has been falling for years.
Charette said he expects to see condo units increase in the next few years, as construction of condominium towers, condominium office towers and condominium hotels begin to take off.
A condo building in North Vancouver is seen on July 31, 2019.
Some of the condos being built by Kamco and Cresco Properties are going up in the Downtown Eastside.
“We are seeing the city start to build condos in their new buildings.
The number of condos is going up at an average rate of about 2,000 units a year, Charette said.
There are a number of factors that are putting pressure on the market.
One is the price of construction materials.
In fact, we are seeing a lot of builders laying off staff as the supply of materials is falling.
Secondly, there is a shortage of supply.
Many of the new condos are going to be built on properties that have been purchased and have been in the market for a while.
There are also concerns about whether the condominium industry can withstand the pressure of the increasing population, said Charette.
Thirdly, there has been an increase in supply.
Construction is going to continue as construction continues in the condo market.
But with the construction, demand has been dropping.
Fourthly, we see a shortage and a drop in supply, Charettes said.
This has been happening since about 2010.
There has been a huge drop in the supply, he said.
We are seeing lots of builders lay off staff.
It’s not just a condo shortage, he added.
Fifthly, demand is down and the supply is up.
We have seen the construction industry be in a slump for a couple of years now, he noted.
Sixthly is that there is no supply, and prices have dropped.
Prices are going down.
Prices have fallen because people are being forced to sell their houses.
Prices haven’t fallen because the market is healthy, Chades said.
And there is another factor at play.
So what are the reasons why prices are going downwards?
The main factor is that the supply has been cut.
The supply is down because there is not enough supply, said Ken Tandberg, president and CEO of the Condominium Association of British Columbia.
We are in a very tight housing market.
There is no way to make new homes in the region.
We don’t have the land and we have not had the housing boom that was anticipated.
The shortage of housing is creating more pressure on prices, Tandenberg said.
And the shortage of builders is also playing a role, said Tandberger, the association’s executive director.
We have been hearing the word for the last few years about the shortage and the construction supply shortage.
And we are hearing from the public and our members that construction is not coming back.
So what are we seeing?
We are hearing that demand is not there and we are starting to see the price drop.
And it is impacting the condo industry in a big way, said Daniele Di Giacomo, president, Condominium Business Association of B.C. “We are now seeing a decline in supply.”