Recent Regulation Boosts Vancouver Presale Sector
In a key development for presale condo watchers, British Columbia’s government has extended protection against Metro Vancouver Regional District development cost charge (DCC) increases from 12 to 24 months, a change formally approved on June 17, 2025 by City Council.
This move offers critical construction cost predictability and capital flow certainty for projects already in planning or under construction.
Why This Matters for Vancouver Presale Condos
1. Stabilizing Presale Project Economics
Development cost charges—fees developers pay that can significantly impact profit margins—had been escalating rapidly. By locking in DCC rates for two years, developers gain a buffer amidst inflation, tariff threats, and high financing costs. That could tip the scales for presale projects previously deemed marginal.
2. Presale Launches to Benefit—Especially Mid‑Summer
MLA Canada’s mid‑July report forecasts seven new project launches in July, adding about 600 units, chiefly low‑rise condos and townhomes suited for end‑users rather than investors. This new stability in cost structure may encourage those projects to proceed—and possibly attract renewed developer interest in earlier delayed launches.
3. A Needed Boost Amid a Cooling Market
Presale transactions in high‑rise concrete condos plunged dramatically—just 1,472 units sold in Q1–Q2 2025, representing a 20% drop from 2024 and 53% drop from 2023. Across all presales, forecasting a 33% year‑over‑year decline. Meanwhile, unsold inventory is forecasted to rise some 60% in 2025.
Amid that sluggishness, the DCC extension acts as a targeted policy lever to preserve feasibility on currently viable developments.
Developer Impact: Who Stands to Gain
Concrete High‑Rise Projects
Large-scale towers—less dependent on end‑user buyers and more sensitive to construction cost risk—face the steepest strain. With earlier projections showing a collapse in high‑rise presales, the new DCC stability provides a lifeline. It may support next stages of financing or approval, especially for developments that can no longer rely on investor demand segments.
Wood‑Frame Low‑Rise Projects
Smaller projects already favoured by end‑users—such as low-rise condos and townhomes—are the focus of upcoming launches. The DCC protections enhance their viability, and may spur additional mid-scale developments in Fraser Valley suburbs.
Insight for Buyers and Investors
End‑User Buyers
For those targeting move‑in ready presale homes or townhomes, this policy extension offers reassurance that projects currently in presale or early construction are less likely to be shelved or hit by cost shocks.
Investors Closely Watching Concrete Towers
Investor‑focused high‑rise projects remain sensitive to market shifts. Developers may still reduce pricing or add incentives to drive absorption if demand stays weak.
Watch for Project Changes
Buyers should monitor developer communications—especially around pricing, deposit schedules, or incentives—as new stability may or may not translate into improved sales momentum.
Case Study Possibility: Broadview by Bosa & One Fifty Braid
MLA’s Presale Pulse (June) named Broadview (Bosa Properties) and One Fifty Braid (Wesgroup), among others, as key upcoming projects. Broadview’s mid‑rise tower in Metrotown and One Fifty Braid’s neighbourhood scale both align with the policy’s targeted boost—keeping these projects feasible amidst cost pressures.
Conclusion
This Metro Vancouver DCC extension to 24 months, approved June 17, 2025, is a strategic lifeline for presale condo projects facing financial headwinds. It particularly benefits wood‑frame and mid‑rise developments targeting end users, while offering some support to hesitant high‑rise projects.
For Vancouver presale condo watchers, this new regulation merits close attention: it may shape which promising projects actually move forward in mid‑2025, and influence pricing and availability across key neighbourhoods.
🔗 References
- BC Gov News – https://news.gov.bc.ca/releases/2025HMA0061-000675
- MLA Canada July Presale Report – https://mlacanada.com/newsfeed/july-2025-presale-report-mid-year-market-momentum-stalls-amid-soft-sales-and-summer
- BCBusiness – https://www.bcbusiness.ca/industries/real-estate/b-c-real-estate-crisis
- Storeys – https://storeys.com/metro-vancouver-presale-market-forecast-2025
- Vancouver New Condos – https://www.vancouvernewcondos.com/assignments
- MLA Canada June Presale Pulse – https://mlacanada.com/newsfeed/june-2025-presale-pulse