Table of ContentsAffordability Index, which is derived from Urban Analytics’ Live database NHSBC Housing’sand new home registry statistics. Population Growth & Housing Starts .

Table of Contents UDI State of the Market Quarterly Publication (Q3 2017)…………..… 4

Population ………………………………………………………………………………….... 7 1.1 Metro Vancouver Population 2007 – Present 1.2 Metro Vancouver Population Growth Rate (%yoy) 1.3 British Columbia Interprovincial Migration 1.4 British Columbia International Migration 1.5 British Columbia Net Migration 1.6 BC’s Population Growth Breakdown

Economic Indicators ………………………………………………………………..…... 8 2.1 Bank of Canada 5 Year Posted Rate (%) 2.2 Consumer Price Index, Canada, BC, Metro Vancouver 2.3 Metro Vancouver Labour Force Totals: 2007 – Present 2.4 BC Unemployment Rate 2.5 Retail Trade, Sales by NAICS: 2007 – Present 2.6 Canada GDP: 2007 – Present

Economic Indicators ……………………………………………………………..……... 9 3.1 Budgetary Balance - Canada 3.2 BC Investment in New Construction: 2007 – Present 3.3 Price of Crude Oil (US Dollars) 3.4 BC Bankruptcies 3.5 Dow Jones Industrial Average (Close) 3.6 Toronto Stock Exchange, Value of Shares Traded

Housing Economic Indicators …………………………………………............... 10 4.1 Homeowner Protection Office Single Family Registrations 4.2 Homeowner Protection Office Multi-Family Registrations

Housing Economic Indicators………………….…………………………….……. 11 5.1 CMHC Townhome Starts 5.2 CMHC Apartment Starts 5.3 CMHC Single Family Starts 5.4 Residential Building Permit Values, Metro Vancouver 5.5 Statistics Canada Housing Price Index, BC, Metro Vancouver 5.6 CMHC Rental Housing Vacancy Rates

New Home Data: Concrete Condominiums ………………………………..…12 6.1 Concrete Condominium Projects Actively Marketing 6.2 Concrete Condominium Sales 6.3 Concrete Condominium Inventory Levels 6.4 Concrete Condominium Standing Inventory Levels

Q3-2017

Table of Contents Page 2

New Home Data: Wood Frame Condominiums ……………………….….. 13 7.1 Wood Frame Condominium Projects Actively Marketing 7.2 Wood Frame Condominium Sales 7.3 Wood Frame Condominium Inventory Levels 7.4 Wood Frame Condominium Standing Inventory Levels

New Home Data: Townhomes ……………………………………………............ 14 8.1 Townhome Projects Actively Marketing 8.2 Townhome Sales 8.3 Townhome Inventory Levels 8.4 Townhome Standing Inventory Levels

UA Affordability Index: New Home Data …………………………………….. 15 9.1 UA Affordability Index: New Concrete Condominiums 9.2 UA Affordability Index: New Wood Frame Condominiums 9.3 UA Affordability Index: New Townhomes

Re-Sale Data: Real Estate Board of Greater Vancouver………............ 16 10.1 Apartment Re-Sales and Listings 10.2 Apartment Re-Sale Prices 10.3 Attached Re-Sales and Listings 10.4 Attached Re-Sale Prices 10.5 Single Detached Re-Sales and Listings 10.6 Single Detached Re-Sales and Prices

Re-Sale Data: Fraser Valley Board………….…………………………….......... 17 11.1 Apartment Re-Sales and Listings 11.2 Apartment Re-Sale Prices 11.3 Attached Re-Sales and Listings 11.4 Attached Re-Sale Prices 11.5 Single Detached Re-Sales and Listings 11.6 Single Detached Re-Sales and Prices

New Home Data: Purpose-Built Rental Apartments……………........... 18 12.1 Apartment Rental Stock in Metro Vancouver 12.2 Vacancy Rates by Region 12.3 Average Rent per Square Foot 12.4 Currently Available Average Rent per Square Foot 12.5 Rental Units per Municipality, in Planning Stages

Methodology & Definitions…………………………………………………………. 19 Definitions Analytical Methods Other Assumptions

Sources …………………………………………………………………………………....… 20 Sources

Q3-2017

Table of Contents Page 3

UDI State of the Market Quarterly Publication

Welcome to the latest edition of UDI Pacific’s “State of the Market” quarterly publication. The Q3-2017 “State of the Market” report provides up-to-date statistics and trends on the new home and re-sale housing markets as well as an aggregate of relevant economic statistics that impact the housing market. The report also includes statistics on the newer purpose-built rental market in Metro Vancouver, and the UDI/Urban Analytics Housing Affordability Index, which is derived from Urban Analytics’ NHSLive database and BC Housing’s new home registry statistics. Population Growth & Housing Starts

The table above shows the trend in housing starts and population change in Metro Vancouver over the past four years. The total population of Metro Vancouver reached 2,200,300 residents in Q3-2017. The third quarter of 2017 had a net population increase of 8,400 residents, which exceeds the number of housing starts by 3,453. Housing starts are down seven percent, year-over-year but are 14% higher than the five-year quarterly average. Note that the population change is reflective of net provincial migration and does not include demand associated with current BC residents.

The current ratio of new Metro Vancouver residents to housing starts is 1.7, which is up by 0.4 from last quarter but identical to Q3-2016. While the current ratio is below the five-year average of 2.1, the number of housing starts to population change remains steady for buyers/tenants. Note that the majority of multi-family housing starts have already been pre-sold. For example, of 5,685 new concrete condominium units available to purchase across Metro Vancouver since January 2017, approximately 89% are reported as sold, and are scheduled to be move-in ready in several years.

53276474

4947

9000 8300 8400

0

2000

4000

6000

8000

10000

12000

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Q32016

Q42016

Q12017

Q22017

Q32017

Metro Vancouver Housing Starts and Population Change (15+)

Housing Starts

PopulationChange (15+)

1.71.4 1.3 1.3

1.7

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Q4 2

012

Q1 2

013

Q2 2

013

Q3 2

013

Q4 2

013

Q1 2

014

Q2 2

014

Q3 2

014

Q4 2

014

Q1 2

015

Q2 2

015

Q3 2

015

Q4 2

015

Q1 2

016

Q2 2

016

Q3 2

016

Q4 2

016

Q1 2

017

Q2 2

017

Q3 2

017

Metro Vancouver Population Change (15+) per Housing Start

Q3-2017

Table of Contents Page 4

Local Economic Factors Some of the key factors affecting the local economy and housing market in Metro Vancouver in Q3-2017 include the recent increases in the Bank of Canada’s (BoC) overnight rate, and recent policy announcements by the Office of the Superintendent of Financial Institutions (OFSI). The BoC increased the overnight rate in both July and September by a total of 50 basis points, which raised the 5-year posted rate to 4.89% after having remained at 4.64% for just over two years. Also, as of January 1st, 2018 all homeowners requiring financing to help fund the purchase of a home will be faced with higher borrowing costs as a result of the implementation of OSFI’s B-20 Policy Guidelines. These guidelines will require borrowers to qualify at the greater of 4.84% or a rate equivalent to 2% more than the mortgage contract rate offered. The British Columbia NDP government made further budget updates during the third quarter relating to its housing initiatives. This includes the promise of $208 million for the construction of 1,700 units (at approximately $122,400 per unit) of affordable rental housing units for low and moderate income renters, seniors, and adults with developmental disabilities or mental health challenges. They further promised $291 million in the next two fiscal years to build 2,000 modular housing units (at approximately $145,500 per unit) for homeless people, along with $170 million to staff and provide support services as part of their 10-year housing affordability plan. While the NDP followed through on the plan to remove tolls for the Port Mann and Golden Ears bridges in early September, it failed to provide any details regarding funding of further investment in transportation infrastructure such as the Patullo Bridge replacement. Also absent from the provincial government was any further announcement regarding Metro Vancouver’s regional transportation plan and any plans to help alleviate traffic congestion with future investments in transit or transportation infrastructure.

Demand for new multi-family homes in Metro Vancouver continued to exceed supply across all product types with a total of 4,102 sales recorded in Q3-2017. The 14 percent drop from the second quarter is primarily due to limited supply restricting sales volume. The total supply of new multi-family home product in Metro Vancouver is down to 1,813 units, representing a drop in supply in all product sectors when compared to 2016. The number of unsold new concrete condominium homes in Metro Vancouver at the end of the third quarter is the lowest since early 2010. The fact supply of all new multi-family product forms across Metro Vancouver continues to fall well short of current demand levels has resulted in immense upward pressure on new home pricing.

Global Economic Factors Third quarter global events that could affect Metro Vancouver’s housing market include foreign trade policy alterations with the US. NAFTA renegotiations started in mid-August with the US maintaining a protectionist stance on cross-border trade. Of particular concern to BC are talks pertaining to a new agreement on a new softwood lumber agreement with the US. In addition to the Canadian dollar maintaining current levels, further trade announcements could further increase US purchasing power in the near future. Strong economic reports in the US through the balance of 2017 could result in further rate hikes there, which could in turn put pressure on Canada to implement further rate hikes. We trust you find the Q3-2017 edition of the State of the Market report helpful and informative. We welcome any feedback or comments on the publication. Sincerely,

Urban Analytics Inc.

Michael Ferreira Jon Bennest

Table of Contents Page 5

Q3-2017

www.terralawcorp.ca

MEET OUR LEGAL TEAM

EXPERTISE

SERVICE FIRST

HOW WE CAN HELP YOU

One of Canada’s Top 5 Commercial Real Estate Boutiques– Canadian Lawyer Magazine

• Acquisitions & Dispositions

• Property Development

• Partnership & Joint Venture Structuring

• Corporate/Commercial

• Financing/Secured Transactions

Follow Us On

E X P E R I E N C E D . C R E A T I V E . P R A C T I C A L .

Terra Law's focus on service and responsiveness allows our clients to seize opportunities as they arise. Our experience and creativity allow us to customize innovative solutions for unique situations, moving deals forward instead of holding them back. Our practical and personalized approach means we can provide constructive and valuable advice on an efficient and cost-effective basis.

Combining over 100 years of experience in virtually every facet of the real estate business, Terra Law’s lawyers have the legal skill and industry knowledge to provide our clients with informed advice and pro-active solutions to their legal challenges. Terra Law has the bench strength, expertise and insight to help our clients protect their interests and achieve their goals.

• Leasing

• Hospitality, Resorts & Timeshare

• Municipal

• Compliance

• Infrastructure & Clean Energy

Terra Law represents a broad range of local, regional, national and international real estate players, helping themmaximize value and minimize risk. Why not put our team to work for you?

1,800

1,850

1,900

1,950

2,000

2,050

2,100

2,150

2,200

2,250

Q32007

Q32008

Q32009

Q32010

Q32011

Q32012

Q32013

Q32014

Q32015

Q32016

Q32017

Thou

sand

s

0.00%

0.25%

0.50%

0.75%

1.00%

Q32007

Q32008

Q32009

Q32010

Q32011

Q32012

Q32013

Q32014

Q32015

Q32016

Q32017

-3,000

-1,000

1,000

3,000

5,000

7,000

9,000

Q32007

Q32008

Q32009

Q32010

Q32011

Q32012

Q32013

Q32014

Q32015

Q32016

Q32017

-5,000

0

5,000

10,000

15,000

20,000

25,000

Q32007

Q32008

Q32009

Q32010

Q32011

Q32012

Q32013

Q32014

Q32015

Q32016

Q32017

Population

Insights & Comments:

• Metro Vancouver’s population has continued to grow steadily with an estimated 2,200,300 residents in Q3-2017; up by just under 30,000 residents year-over-year

and up 8,400 residents from last quarter.

• Metro Vancouver’s population growth has remained at 0.38% compared to Q2-2017, and is up 1.4% year-over-year.

• Net migration to BC increased by 19,137 residents in Q2-2017 of which 74% were new international migrants.

• Interprovincial migration into BC has been net positive since Q2-2013.

• As of the most recent update (Q2-2017) 5,034 new residents moved to BC from other provinces.

1.1 Metro Vancouver Population 2007 - Present

1.2 Metro Vancouver Population Growth Rate (%)

1.3 British Columbia Interprovincial Migration

1.4 British Columbia International Migration

1.5 British Columbia Net Migration

1.6 British Columbia Growth Breakdown

Q3-2017

Table of Contents Page 7

-4,000-2,000

02,0004,0006,0008,000

10,00012,00014,00016,00018,00020,00022,000

Q32007

Q32008

Q32009

Q32010

Q32011

Q32012

Q32013

Q32014

Q32015

Q32016

Q32017

BC's Population Growth Break Down Q3 2016 Q4 2016 Q1 2017 Q2 2017

11,969 10,932 10,682 11,125

17,617 10,096 14,527 22,076

7,821 7,163 10,631 10,163

37,407 28,191 35,840 43,364

8,613 9,752 10,693 8,99314,038 6,804 11,001 17,042

3,666 3,707 3,164 2,833

26,317 20,263 24,858 28,868

11,090 7,928 10,982 14,496

Out-Migrants

Net Increase/Decrease

Emigrants

Total Net Decrease

Bi rths

In-Migrants

Immigrants Total Net Increase

Deaths

0

200

400

600

800

1,000

1,200

1,400

1,600

Q32007

Q32008

Q32009

Q32010

Q32011

Q32012

Q32013

Q32014

Q32015

Q32016

Q32017

Thou

sand

s

3%

4%

5%

6%

7%

8%

9%

Q32007

Q32008

Q32009

Q32010

Q32011

Q32012

Q32013

Q32014

Q32015

Q32016

Q32017

$1,300

$1,375

$1,450

$1,525

$1,600

$1,675

$1,750

$1,825

$1,900

Q32007

Q32008

Q32009

Q32010

Q32011

Q32012

Q32013

Q32014

Q32015

Q32016

Q32017

BIlli

ons

$10

$12

$14

$16

$18

$20

$22

Q32007

Q32008

Q32009

Q32010

Q32011

Q32012

Q32013

Q32014

Q32015

Q32016

Q32017

Billi

ons

4%

5%

6%

7%

8%

Q32007

Q32008

Q32009

Q32010

Q32011

Q32012

Q32013

Q32014

Q32015

Q32016

Q32017

95

100

105

110

115

120

125

130

135

Q32007

Q32008

Q32009

Q32010

Q32011

Q32012

Q32013

Q32014

Q32015

Q32016

Q32017

Canada Metro Vancouver

Economic Indicators

Insights & Comments:

• For the first time since Q2-2015, the Bank of Canada’s 5-year conventional mortgage rate has increased: as of Q3-2017 it is posted at 4.89% after two consecutive

increases in July and September.

• Major banks in Canada are currently offering 5-year fixed term rates between 3.04% to 3.33%.

• BC’s unemployment rate has continued to trend downwards, reaching 4.5% in Q3-2017: down 0.4% from last year and 1.3% lower than in Q3-2015.

• The size of Metro Vancouver’s labour force rose by only 1,100 workers during Q3-2017 to a total of 1,477,000: up 2.2% from last year and 7.1% higher than Q3-2015.

• Canada’s GDP rose for the sixth consecutive quarter climbing just under 20 Billion from Q1-2017 to the most recent update (Q2-2017).

• Retail sales rose to a new record in the most recent update, reaching $21 Billion in Q2-2017, which is up 4% from the previous quarter and up 12.4% year-over-year.

2.1 Bank of Canada 5 Year Posted Rate (%)

2.2 Consumer Price Index

2.3 Metro Vancouver: Labour Totals 2007 - Present

2.4 British Columbia Unemployment Rate

2.5 Retail Trade, Sales by NAICS: 2007 - Present

2.6 Canada GDP: 2007 - Present

Q3-2017

Table of Contents Page 8

-$80

-$60

-$40

-$20

$0

$20

$40

$60

Q22007

Q22008

Q22009

Q22010

Q22011

Q22012

Q22013

Q22014

Q22015

Q22016

Q22017

Billi

ons

$0$200$400$600$800

$1,000$1,200$1,400$1,600$1,800$2,000

Q32007

Q32008

Q32009

Q32010

Q32011

Q32012

Q32013

Q32014

Q32015

Q32016

Q32017

Mill

ions

$0

$20

$40

$60

$80

$100

$120

$140

Q32007

Q32008

Q32009

Q32010

Q32011

Q32012

Q32013

Q32014

Q32015

Q32016

Q32017

900

1,400

1,900

2,400

2,900

Q3 2009 Q3 2010 Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017

Thou

sand

s

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

22,000

24,000

Q32007

Q32008

Q32009

Q32010

Q32011

Q32012

Q32013

Q32014

Q32015

Q32016

Q32017

$0

$25

$50

$75

$100

$125

$150

$175

$200

Q32007

Q32008

Q32009

Q32010

Q32011

Q32012

Q32013

Q32014

Q32015

Q32016

Q32017

Billi

ons

Economic Indicators

Insights & Comments:

• Canada’s budget, which has operated at a deficit since Q1-2014, totaled $35 billion as of the most recent update in Q2-2017.

• The deficit has increased by 19% compared to the same quarter in 2016,

• Investment in new construction in BC is just over $1.5 billion as of the most recent update (Q2-2017) which is up 3% year-over year and up 47% from Q2-2015.

• The price of oil has trended upwards since early 2016, rising 18% year-over-year to $52.95 USD per barrel at the end of Q3-2017.

• The total number of bankruptcies in BC has risen for two consecutive quarters, totaling 1,190 from the most recent update (Q2-2017) but is 11% lower than the year

prior.

• The DJIA reached a new record at the end of Q3-2017: climbing 22% from Q3-2016 to 22,405 points.

• The TSX increased to just over the 15,600 mark which is up 6% from the same period in 2016.

3.1 Budgetary Balance, Canada

3.2 BC Investment in New Construction: 2007 - Present

3.3 Price of Crude Oil (US Dollars)

3.4 British Columbia Bankruptcies

3.5 Dow Jones Industrial Average (Close)

3.6 Toronto Stock Exchange, Value of Shares Traded

Q3-2017

Table of Contents Page 9

200

300

400

500

600

700

Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017

Vancouver Proper Inner Metro Outer Metro

200

600

1000

1400

1800

2200

2600

3000

3400

Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017

Vancouver Proper Inner Metro Outer Metro

Housing Economic Indicators

All new homes in the province must be registered with BC Housing. The registration data is collected by BC Housing in the public registry. The majority of registered new homes are enrolled with home warranty insurance which protects against construction defects. The registration of new homes must occur prior to the issuance of building permits and housing starts. The new home registrations measure residential construction activities at the beginning of a project before construction commences.

- Single includes the new single detached homes enrolled with home warranty insurance or with approved Owner Builder Authorizations.

- Multi includes the new homes in multi-unit buildings (2 or more dwelling units) enrolled with home warranty insurance and does not include new homes in multi-unit rental buildings (purpose built rentals).

Note: Some minor adjustments may be made to the figures over time as registrations are withdrawn or cancelled from home warranty insurance from time to time.

Insights & Comments:

• A total of 1,452 single-family home registrations were recorded in Q3-2017, which is down 9% year-over-year and 7% lower than in Q3-2015.

• While Inner Metro was the only region to record a decrease in single-family home registrations compared to Q2-2017 (down 10% or 464 units), registrations in this

sector are lower across all of Inner Metro, Outer Metro, and the City of Vancouver from the previous year.

• The Inner Metro region recorded the largest decrease compared to Q3-2016 at 17% from 503 single-family registrations.

• Total single-family home registrations across Metro Vancouver are up 10% compared to the 5 year average (1,321).

• Metro Vancouver recorded a total of 5,791 multi-family home registrations in Q3-2017, which is up 6% year-over-year and 21% higher than Q3-2015.

• Forty percent of multi-family home registrations in Q3-2017 were located in the Inner Metro region and 33% were in the City of Vancouver.

4.1 New Single Family Registrations

4.2 New Multi-Family Registrations

Q3-2017

Table of Contents Page 10

A study has been conducted by the Bank of Canada in collaboration with BC Housing to assess whether new home registration data under the Homeowner Protection Act can be used as a leading indicator for economic activity in B.C. The research finds that quarterly increases in new registrations for single-detached homes have statistically significant predictive content for growth in real GDP over the next one to three quarters, and provide stronger signals compared to housing starts and building permits over this forecast horizon. The research report has been published under Staff Discussion Papers on the website of the Bank of Canada. http://www.bankofcanada.ca/wp-content/uploads/2016/02/sdp2016-3.pdf

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

Vancouver North Shore

Tri-Cities/Ridge Meadows Surrey/Langley/White Rock

Richmond/Delta Burnaby/New Westminster

0

100

200

300

400

500

600

700

800

Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017

Inner Metro Outer Metro Vancouver

0250500750

1000125015001750200022502500

Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017

Inner Metro Outer Metro Vancouver

0

100

200

300

400

500

600

Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017

Inner Metro Outer Metro Vancouver

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

Q22007

Q22008

Q22009

Q22010

Q22011

Q22012

Q22013

Q22014

Q22015

Q22016

Q22017

Mill

ions

70

75

80

85

90

95

100

105

110

Q3 2

007

Q3 2

008

Q3 2

009

Q3 2

010

Q3 2

011

Q3 2

012

Q3 2

013

Q3 2

014

Q3 2

015

Q3 2

016

Q320

17

Metro Vancouver BC

Housing Economic Indicators

Insights & Comments:

• 4,947 new housing starts were recorded in Q3-2017 which is down 7% from last year but 19% higher than in Q3-2015.

• Q3-2017 new housing starts by product type were as follows: 835 townhomes, 2,852 apartments, and 1,260 detached single family homes.

• Detached single family homes accounted for 25% of the total new housing starts during the quarter which is up 22% but similar to Q3-2015 (27%).

• Townhome starts in Q3-2017 were down 12% from the same quarter last year but 11% higher than Q3-2015 with an increasing proportion located in Outer Metro.

• The proportion of total townhome starts located in the Outer Metro region has increased for four consecutive years: from 50% in Q3-2013 to 95% in Q3-2017.

• Condominium starts are down 11% from Q3-2016 but 25% higher than in the same quarter of 2015.

• Condominium starts (1,250) in the City of Vancouver exceeded those recorded for the Inner Metro Region this quarter.

• Residential building permits in Metro Vancouver as of the most recent update (Q2-2017) totaled $1.79 Billion.

5.1 CMHC Townhome Starts

5.2 CMHC Apartment Starts

5.3 CMHC Single Family Starts

5.4 Residential Building Permits – Metro Vancouver

5.5 Statistics Canada Housing Price Index

5.6 CMHC Rental Housing Vacancy Rates

Q3-2017

Table of Contents Page 11

0

10

20

30

40

50

60

70

Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017

Inner Metro Vancouver Outer Metro

0

500

1,000

1,500

2,000

2,500

Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017

Outer Metro Vancouver Inner Metro

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017

Outer Metro Vancouver Inner Metro

050

100150200250300350400450500

Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017

Inner Metro Outer Metro Vancouver

–

New Home Data: Concrete Condominiums

Insights & Comments:

• A total of 94 new concrete condominium projects were actively selling across Metro Vancouver in Q3-2017.

• Although this is down by one project from last quarter, this is up by 21 projects from the same quarter last year.

• In Q3-2017, there were a total of 2,224 concrete condominium sales recorded, which is up 26% year-over-year and within one percent of the Q3-2015 total.

• Total concrete condominium sales are down 9% compared to the previous quarter, which is primarily due to 84% fewer (to 104) sales in the Outer Metro region.

• By contrast, the City of Vancouver experienced a 32% increase in sales (to 447) over the same time frame.

• The total amount of released and unsold inventory of new concrete condominiums across Metro Vancouver (1,061) is at its lowest level since early 2010; down 23%

year-over-year and 65% lower than Q3-2015.

• Overall released and unsold new concrete condominiums has trended downwards since a high of 5,577 units in Q1-2013.

• Only the Outer Metro region has experienced an increase in released and unsold inventory since Q3-2016, but only marginally (up 2%).

• The number of move-in ready concrete condominiums increased for the second consecutive quarter to 45 units across Metro Vancouver in Q3-2017.

• The vast majority (76%) are located in Inner Metro, and 33 of these are located within one building in New Westminster.

• Total move-in ready concrete condominiums in Metro Vancouver remain at record lows and is 88% below the five-year average (385).

1: Released and unsold “inventory” includes new home product available for sale that is pre-construction, under construction, and completed. “Standing Inventory” refers

unsold units that are complete and move-in ready.

6.1 Concrete Condominium Projects Actively Marketing

6.2 Concrete Condominium Sales

6.3 Concrete Condominium Released & Unsold Inventory Levels

6.4 Concrete Condominium Standing Inventory Levels

Q3-2017

Table of Contents Page 12

0100200300400500600700800900

1000

Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017

Inner Metro Outer Metro Vancouver

0

200

400

600

800

1000

1200

1400

1600

1800

Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017

Inner Metro Outer Metro Vancouver

0

100

200

300

400

500

600

700

Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017

Inner Metro Outer Metro Vancouver

0

10

20

30

40

50

60

Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017

Inner Metro Outer Metro Vancouver

New Home Data: Wood Frame Condominiums

Insights & Comments:

• A total of 41 new wood frame condominium projects were actively selling across Metro Vancouver in Q3-2017.

• This represents a 3% increase relative to the same quarter last year but is down 61% from Q3-2015.

• Just under half of these projects are located in the Inner Metro Region.

• 1,248 new wood frame condominium sales were recorded across Metro Vancouver in Q3-2017, which is up 101% year-over-year and 12% higher than Q3-2015.

• The City of Vancouver is the only region to experience lower wood frame condominium sales in Q2-2017: -38% to 41 quarterly sales.

• The supply of released and unsold wood frame condominiums continues to trend downwards.

• In Q3-2017, there were a total of 310 released and unsold wood frame condominiums recorded across Metro Vancouver.

• This is down 40% compared to the same quarter last year and 81% lower than in Q3-2015.

• Despite the overall lower sales volumes across the region, the City of Vancouver recorded higher sales compared to Q2-2017: up 67% from 12 units.

• The number of new move-in ready wood frame condominiums in Metro Vancouver is up for the second consecutive quarter; to 24 units in Q3-2017.

• However, this remains 95% below the five-year average (476) and has trended downwards significantly from Q1-2014 where 997 new move-in ready wood frame

condominiums were recorded across Metro Vancouver.

• Of these 24 units, 75% are concentrated in the Inner Metro region, and 15 units are located in one building in Richmond.

• There was not a single new move-in ready wood frame condominium unit available in the City of Vancouver at the end of Q3-2017.

7.1 Wood Frame Condominium Projects Actively Marketing

7.2 Wood Frame Condominium Sales

7.3 Wood Frame Condominium Released & Unsold Inventory Levels

7.4 Wood Frame Condominium Standing Inventory Levels

Q3-2017

Table of Contents Page 13

0

10

20

30

40

50

60

70

Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017

Inner Metro Outer Metro Vancouver

0100200300400500600700800900

10001100

Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017

Inner Metro Outer Metro Vancouver

0

150

300

450

600

750

900

Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017

Inner Metro Outer Metro Vancouver

0

50

100

150

200

250

300

350

400

Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017

Inner Metro Outer Metro Vancouver

New Home Data: Townhomes

Insights & Comments:

• There were 67 new townhome projects actively selling across Metro Vancouver in Q3-2017.

• While this is up by two projects from Q3-2016, it represents 14 fewer projects from the same quarter of 2015 and is below the 5-year quarterly average of 83

projects.

• There were 630 new townhome sales recorded in Q3-2017 across Metro Vancouver.

• This sales volume represents a year-over-year decline of 7% and is also 23% lower than in Q3-2015.

• Compared to the previous quarter, overall townhome sales are down 45%, which can be largely attributed to the lower sales experienced in the Outer Metro region

during that period; down 56% to 395 sales.

• Only the Inner Metro Region experienced an increase in sales relative to Q2-2017, albeit a negligible increase of less than 1%.

• Total released and unsold townhome inventory in Q3-2017 (442) is down 30% from the same quarter last year and down 39% from Q3-2015.

• This number represents the third lowest recorded level of new townhome supply available since Q1-2010.

• Released and unsold inventory was lower in every region (Inner Metro, Outer Metro and the City of Vancouver) in Q3-2017 compared to last quarter.

• There were 15 completed and unsold new townhomes across Metro Vancouver at the end of Q3-2017.

• This is down by 4 units from the previous quarter and remains 94% below the five-year-average (259).

• Furthermore, this has trended downwards from the high of 704 new move-in ready townhomes recorded across Metro Vancouver in Q2-2013.

• Of the total number of new move-in ready townhomes, nine are located in Inner Metro, five are located in Outer Metro, and one is located in the City of Vancouver.

8.1 Townhome Projects Actively Marketing

8.2 Townhome Sales

8.3 Townhome Released & Unsold Inventory Levels

8.4 Townhome Standing Inventory Levels

Q3-2017

Table of Contents Page 14

70.9% 70.1% 73.6% 73.6% 74.3% 76.4% 76.5% 77.1% 75.0% 73.6% 73.7% 72.4% 73.1%

55.1%

39.5%

53.0% 51.8% 55.3% 54.4% 55.4% 53.4% 51.5% 52.6% 50.7%44.1% 42.2%

34.4% 37.2%27.2%

29.5%

39.3% 38.6% 40.9% 38.6% 36.3% 31.6% 31.5% 29.7%20.9%

12.9%9.0% 10.1% 9.5% 4.7% 6.7%

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Outer Metro Inner Metro Vancouver

72.1% 71.8% 75.0% 72.5% 73.3% 71.7% 73.9% 73.4% 73.9%68.2% 66.9% 66.4% 67.4%

57.7%56.7%

60.0% 59.4%63.2% 61.8% 62.3% 61.9% 60.0% 59.5% 57.1%

54.5% 52.7% 49.1% 48.1% 47.7%

39.9%35.0%39.5% 40.7%

44.4%40.3% 38.2% 39.9% 36.7%

30.6%26.8% 29.6% 29.3% 29.4%

20.5%33.2%

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Outer Metro Inner Metro Vancouver

65.2% 65.7%70.0% 67.7% 69.7% 68.5%

64.4% 67.9% 64.7%57.9%

53.7%46.4%

55.1% 47.7%52.7%50.1% 46.9%

51.7% 51.1% 50.6%59.0%

49.2% 47.9% 49.3%

36.8%32.6% 36.2% 36.6%

39.3% 32.9%18.5%

22.9% 24.5%

32.8% 34.7%27.4%

32.2%

22.4%27.3%

11.3% 9.0% 8.4%10.3%

4.2% 11.0%

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Outer Metro Inner Metro Vancouver

UA Affordability Index: New Home Data

Insights & Comments:

• The Q3-2017 affordability index reflects household income data from the 2015 Census released in September 2017.

• Improved affordability of all new multi-family product forms in the City of Vancouver in Q3-2017 can be attributed primarily to the combination of a higher

proportion of the City of Vancouver’s households reporting higher incomes, and to a smaller sample size of competing projects in this market.

• 61% of income producing households in the City of Vancouver reported incomes of $50,000 to over $200,000 in 2015, compared to 55% in the 2010 Census.

• A 12.7% improvement in affordability in the wood frame condominium sector is the result of just one actively selling project in the City of Vancouver.

• The affordability of new wood frame condominiums and townhomes in the Inner Metro region decreased from last quarter to 39.9% and 32.9%, respectively.

• The new concrete condominium sector of the Outer Metro regions experienced the biggest deterioration in affordability, and is at its lowest level since early 2014,

largely a result of the launch of a new tower in White Rock (Foster Martin).

• The lowest five-year fixed interest rates offered by major Canadian banks have increased from last quarter and range from 3.04% to 3.44%.

9.1 UA Affordability Index: New Concrete Condominiums

9.2 UA Affordability Index: New Wood Frame Condominiums

9.3 UA Affordability Index: New Townhomes

Q3-2017

Table of Contents Page 15

$100

$200

$300

$400

$500

$600

$700

Q32007

Q32008

Q32009

Q32010

Q32011

Q32012

Q32013

Q32014

Q32015

Q32016

Q32017

Thou

sand

s

$200

$300

$400

$500

$600

$700

$800

Q32007

Q32008

Q32009

Q32010

Q32011

Q32012

Q32013

Q32014

Q32015

Q32016

Q32017

Thou

sand

s

$300

$500

$700

$900

$1,100

$1,300

$1,500

$1,700

Q32007

Q32008

Q32009

Q32010

Q32011

Q32012

Q32013

Q32014

Q32015

Q32016

Q32017

Thou

sand

s

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Q32007

Q32008

Q32009

Q32010

Q32011

Q32012

Q32013

Q32014

Q32015

Q32016

Q32017

Sales Listings

0

500

1,000

1,500

2,000

2,500

Q3 2007Q3 2008Q3 2009Q3 2010Q3 2011Q3 2012Q3 2013Q3 2014Q3 2015Q3 2016Q3 2017

Sales

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Q32007

Q32008

Q32009

Q32010

Q32011

Q32012

Q32013

Q32014

Q32015

Q32016

Q32017

Sales Listings

Re-Sale Data: Real Estate Board of Greater Vancouver

Insights & Comments:

• There were 4,361 apartment, 1,397 townhome, and 2,368 single family home re-sales recorded in Greater Vancouver in Q3-2017.

• The number of apartment re-sales are down by 2%, 25% lower for single family homes, and are unchanged for townhomes from Q3-2016.

• The number of listings and re-sales of single family homes were nearly identical in Q3-2017.

• Average benchmark prices of all product forms continued to increase in Greater Vancouver.

• Compared to Q3-2016, the average benchmark price is up by 22% for apartments, 15% higher for townhomes, and up 2% for single-family homes.

• Over the past two years, the average benchmark prices are 54% higher for apartments, 51% higher for townhomes, and up 49% for single family homes.

• As of Q3-2017, average benchmark prices of all product forms in Greater Vancouver are as follows: Apartments - $626,400 Townhomes - $776,200, Single Family -

$1,614,933.

10.1 Apartment Re-Sales and Listings

10.2 Apartment Re-Sale Benchmark Price (GV)

10.3 Attached Re-Sales and Listings

10.4 Attached Re-Sale Benchmark Price (GV)

10.5 Single Detached Re-Sales and Listings

10.6 Single Detached Re-Sale Benchmark Price (GV)

Q3-2017

Table of Contents Page 16

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Q3 2009 Q3 2010 Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017

Sales Active Listings

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Q3 2009 Q3 2010 Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017

Sales Active Listings

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Q3 2009 Q3 2010 Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017

Sales Active Listings

$220$230$240$250$260$270$280$290$300$310$320$330$340$350$360

Q3 2009 Q3 2010 Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017

Thou

sand

s

$310

$360

$410

$460

$510

$560

$610

Q3 2009 Q3 2010 Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017

Thou

sand

s

$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

Q3 2009 Q3 2010 Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017

Thou

sand

s

Re-Sale Data: Fraser Valley Board

Insights & Comments: • The Fraser Valley Real Estate Board (FREB) recorded 1,485 single family home re-sales, 1,269 apartment re-sales, and 1,128 townhome re-sales in Q3-2017.

• These re-sale totals represent the following increases for each product form: +26% for apartments, +13% for townhomes, and +12% for single-family homes.

• The number of active townhome listings is 17% higher than in the same quarter last year, while apartment and single-family home listings have decreased over the

same period; -33% for apartments and -3% for single family homes.

• When compared to the five-year average, the number of active listings for single family homes has remained relatively similar; down 2% to 2,153 in Q3-2017.

• By contrast, the 573 active townhome listings and 585 apartment listings in Q3-2017 are below the five-year average by 32% and 46%, respectively.

• Average benchmark prices increased across all product forms in Q3-2017 and are at record highs.

• Average benchmark prices in the FREB areas are as follows in Q3-2017: $1,117,128 for single-family homes, $566,679 for townhomes, and $355,493 for apartments.

• The most significant yearly change was in the apartment sector (+24%) where prices increased in each municipality in the Fraser Valley.

11.1 Apartment Re-Sales and Listings

11.2 Apartment Re-Sale Average Prices

11.3 Attached Re-Sales and Listings

11.4 Attached Re-Sale Average Prices

11.5 Single Detached Re-Sales and Listings

11.6 Single Detached Re-Sale Average Prices

Q3-2017

Table of Contents Page 17

0500

100015002000250030003500

Concrete Units Wood Frame Units Townhome Units

$-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

Inner Metro Outer Metro Vancouver

Concrete PSF Woodframe PSF Townhome PSF

$-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

Inner Metro PSF Outer Metro PSF Vancouver PSF

Concrete PSF Woodframe PSF Townhome PSF

0

500

1000

1500

2000

2500

3000

3500

4000

4500

Inner Metro Outer Metro Vancouver

C total WF total TH total

1.01%

4.08%

2.46%

0% 20% 40% 60% 80% 100%

Inner Metro

Outer Metro

Vancouver

Vacancy Rate Occupancy Rate

New Home Data: Purpose-Built Rental Apartments

Insights & Comments:

• There were a total of 8,242 newer actively leasing or fully leased purpose-built rental units across in Metro Vancouver as of the end of Q3-2017.

• 5,781 units are located in the City of Vancouver, 1,873 are in Inner Metro, and 588 are located in Outer Metro.

• Average vacancy rates for newer purpose-built rental buildings in Metro Vancouver were reported as 2.24% in Q3-2017 (City of Vancouver: 2.46%; Inner Metro: 4.08%; Outer Metro: 4.08%).

• The Outer Metro vacancy rate is due to a newer purpose built rental project with 17 unabsorbed units, without which the Outer Metro Vacancy rate would be 1.12%.

• Average rents for newer purpose-built concrete rental units were $2.75 and $3.00 per square foot in Inner Metro and Vancouver, respectively.

• Average rents for newer purpose-built wood frame rental units were $2.05, $1.63, and $2.68 per square foot in Inner Metro, Outer Metro and the City of Vancouver,

• A total of 16,975 purpose-built rental units are in the planning stages throughout Metro Vancouver, with nearly half of these units planned for the Outer Metro region. 1: Sample size of 8,242 units over 92 newer rental apartment and townhome projects in Metro Vancouver.

2: Refer to methodology on page 19.

12.1 Apartment Rental Stock in Metro Vancouver*

12.2 Vacancy Rates by Region

12.3 Average Rent Per Square Foot

12.4 Currently Available Average Rent Per Square Foot

12.5 Rental Units per Municipality, in Planning Stages

Q3-2017

Table of Contents Page 18

Page generated with NHSLive Rental data. For more detailed rental information, contact [email protected] for subscription options. *The majority of the Rental Apartment data referred to herein as ‘newer purpose-built rental’ relates to purpose built rental apartment buildings completed since 2010.

Methodology & Definitions – Affordability Index Definitions Inner Metro: West Vancouver, North Vancouver, Burnaby, New Westminster, Richmond, South Delta, Coquitlam, Port Moody & Port Coquitlam. Outer Metro: Langley, North Delta, Surrey, White Rock, Pitt Meadows and Maple Ridge. Vancouver: Downtown Vancouver, Vancouver West and Vancouver East. Prices Prices for the new home market were collected from actively selling new multi-family projects in Metro Vancouver. Re-sale prices were collected from the Real Estate Boards of Greater Vancouver and the Fraser Valley (with median and benchmark prices used). Income The Index uses household income information from Statistics Canada data from the 2010 Household Survey. Assumed Down Payments Wood frame and concrete condominiums: 20% Townhomes: 30% The reason for the difference is the assumption that townhome buyers are more likely to be move-up buyers with equity built up in their existing property. Analytical Methods Five year, fixed rate 30-year amortization mortgages were used, taking an average of the best rates at eight banks at the time of analysis. Other Assumptions The affordability index assumes that a person can afford a maximum of 32 percent of their gross family income to go toward mortgage payments.

Additional Methodology & Definitions – New Home Data: Purpose-Built Rental Apartments

Analytical Methods Chart 1: Apartment Rental Stock in Metro Vancouver: Sum of “move-in ready” units by product type. “Move-in ready” is defined as those projects that are Fully Leased and that are Active (actively leasing) with standing inventory. Chart 2: Vacancy Rates by Region: Projects included are those that are “move-in ready”, as defined above. Chart 3: Average Rent per Square Foot: Average rent for fully leased projects only. The average per region is based on average dollar per square foot prices of each sub-market. Chart 4: Currently Available Average Rent per Square Foot: Average rent for currently available units of fully leased projects. The average per region is based on average dollar per square foot prices of each sub-market. Chart 5: Rental Units per Municipality, in Planning Stages: Total units of every project in the contemplated section of the Rental database, by product type.

Q3-2017

Table of Contents Page 19

Sources Sources

Q3-2017

1.1 - Statistics Canada Monthly Labour Force Survey 1.2 - Statistics Canada Monthly Labour Force Survey 1.3 - Stats Canada Quarterly Demographic Estimates 1.4 - Stats Canada Quarterly Demographic Estimates 1.5 - Stats Canada Quarterly Demographic Estimates 1.6 - Stats Canada Quarterly Demographic Estimates 2.1 - Bank of Canada 2.2 - BC Stats Consumer Price Index 2.3 - Statistics Canada Monthly Labour Force Survey 2.4 - Statistics Canada Monthly Labour Force Survey 2.5 - Statistics Canada Retail Trade by Province 2.6 - Statistics Canada Gross Domestic Product 3.1 - Stats Canada Revenue, Expenditure & Budget 3.2 - Statistics Canada Investment in New Housing 3.3 - Index Mundi (Monthly Spot Oil Prices) 3.4 - Industry Canada Insolvency Statistics 3.5 - Statistics Canada Stock Market Statistics 3.6 - Statistics Canada Stock Market Statistics 4.1 BC Housing (data collected by the HPO branch) - New Single Family Registrations 4.2 BC Housing (data collected by the HPO branch) - New Multi-Family Registrations 5.1 - CMHC Housing Now – Vancouver & Abbotsford 5.2 - CMHC Housing Now – Vancouver & Abbotsford 5.3 - CMHC Housing Now – Vancouver & Abbotsford 5.4 - Statistics Canada Building Permits 5.5 - Statistics Canada New Housing Price Indexes 5.6 - CMHC Rental Market Report 6.1 - UA New Home Source Database 6.2 - UA New Home Source Database 6.3 - UA New Home Source Database 6.4 - UA New Home Source Database

Table of Contents Page 20

7.1 - UA New Home Source Database 7.2 - UA New Home Source Database 7.3 - UA New Home Source Database 7.4 - UA New Home Source Database 8.1 - UA New Home Source Database 8.2 - UA New Home Source Database 8.3 - UA New Home Source Database 8.4 - UA New Home Source Database 9.1 - UA New Home Source Database, Stats Canada, Bank Websites 9.2 - UA New Home Source Database, Stats Canada, Bank Websites 9.3 - UA New Home Source Database, Stats Canada, Bank Websites 10.1 - REBGV Monthly Statistics 10.2 - REBGV Monthly Statistics 10.3 - REBGV Monthly Statistics 10.4 - REBGV Monthly Statistics 10.5 - REBGV Monthly Statistics 10.6 - REBGV Monthly Statistics 11.1 - FVREB Monthly Statistics 11.2 - FVREB Monthly Statistics 11.3 - FVREB Monthly Statistics 11.4 - FVREB Monthly Statistics 11.5 - FVREB Monthly Statistics 11.6 - FVREB Monthly Statistics 12.1 – UA New Home Source Rental Database 12.2 – UA New Home Source Rental Database 12.3 – UA New Home Source Rental Database 12.4 – UA New Home Source Rental Database 12.5 – UA New Home Source Rental Database