Despite a challenging Canadian real estate market with thousands of unsold homes, some 'brave' developers are proceeding with new construction projects, banking on future market upturns. The federal government's recent GST break for first-time homebuyers is seen as a small step, but the industry hopes for more support to clear inventory and meet housing targets, while some developers are resorting to significant price cuts and incentives to move units.
In a challenging market, a few brave developers push forward
Vancouver
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Despite a challenging Canadian real estate market with thousands of unsold homes, some 'brave' developers are proceeding with new construction projects, banking on future market upturns. The federal government's recent GST break for first-time homebuyers is seen as a small step, but the industry hopes for more support to clear inventory and meet housing targets, while some developers are resorting to significant price cuts and incentives to move units.
Trending- 1 2008: Market downturn, origin of 'Condoday' flash sales.
- 2 2021: Square Nine sold 200 units at Belvedere at original price.
- 3 Last fall (2024): Grosvenor had a successful presale launch for Brentwood Block.
- 4 First quarter of 2025: Slow sales in the real estate market.
- 5 Last week (early June 2025): Federal government made good on its promise to give first-time home buyers a GST break.
- 6 Last Saturday (early June 2025): Square Nine Developments slashed prices on 77 units at Belvedere.
- 7 This summer (2025): Cam Good expects to do several more Condoday promotions.
- 8 By year’s end (2025): Rennie Marketing Systems forecasts nearly 3,500 unsold units in Vancouver area.
- 9 Next decade: Prime Minister Mark Carney campaigned on building almost half a million homes per year.
- Thousands of unsold homes across Canada
- Financial strain on developers
- Potential for increased housing supply in the long term
- Shift in developer strategies (e.g., price cuts, incentives)
- Debate over government housing policies
What: In a challenging Canadian real estate market with thousands of unsold homes (nearly 3,500 in Vancouver area, 24,000 in Toronto), some developers are pushing forward with new construction projects, anticipating a market upturn. The federal government introduced a GST break for first-time homebuyers, a move the industry hopes will be expanded and supplemented by other policies to clear inventory and meet housing targets.
When: Last week (federal government made good on GST promise), by year’s end (Rennie Marketing Systems forecast), recent federal election campaign (Mark Carney's pledge), last fall (Grosvenor's successful presale launch), first quarter of 2025 (slow sales), last Saturday (Square Nine Developments slashed prices), 2021 (Square Nine sold 200 units at Belvedere), 2008 (market downturn, Key Marketing's 'Condoday' origin), this summer (Cam Good expects more Condoday promotions).
Where: Canada (general), Vancouver area, Toronto, Burnaby, B.C. (Brentwood Block), Surrey City Centre, B.C. (Belvedere project), Port Moody, B.C. (Edgar Development project), Oakridge (Peterson Group project).
Why: Developers are proceeding despite high inventory due to confidence in long-term demand driven by population growth, anticipated lower interest rates, and investors returning to the market. The government aims to increase housing supply to meet its target of almost half a million homes per year.
How: The federal government implemented a GST break for first-time homebuyers. Developers like Grosvenor are launching large-scale projects based on successful presales and long-term market confidence. Others, like Square Nine Developments, are using marketing incentives, including significant price cuts ('Condoday' flash sales) and buy-back/lease-back options, to clear existing inventory.