Vancouver's condo development industry is experiencing a significant downturn, leading major companies like Wesgroup Properties and Rennie Group to lay off staff and sell assets. This decline, ongoing since 2022 due to inflation and soaring interest rates, is characterized by delayed projects, insolvencies, and difficulty securing financing for presales, with calls from the industry for government intervention, such as reducing municipal fees and lifting the federal foreign buyer ban.
Vancouver developers lay off staff, sell off assets as condo industry decline continues
Vancouver
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TL;DR: Key points with love ❤️Vancouver's condo development industry is experiencing a significant downturn, leading major companies like Wesgroup Properties and Rennie Group to lay off staff and sell assets. This decline, ongoing since 2022 due to inflation and soaring interest rates, is characterized by delayed projects, insolvencies, and difficulty securing financing for presales, with calls from the industry for government intervention, such as reducing municipal fees and lifting the federal foreign buyer ban.
Trending- 1 Height of pandemic: Vancouver real estate industry had a great run.
- 2 2022: Inflation hit, interest rates soared, condo industry decline began.
- 3 Early February 2023: Coromandel Properties applied for creditor protection.
- 4 2023: Vancouver region saw historically high housing starts (33,000 units).
- 5 First quarter of this year (2025): 22% of land sales over $5M were court-ordered.
- 6 Last week (June 2025): Wesgroup Properties announced 12% staff layoffs.
- 7 Prior to last week: Rennie Group announced 25% staff layoffs.
- Layoffs in the real estate industry
- Delayed housing projects
- Insolvencies
- Reduced revenues for marketing firms
- Increased vacancy rates for rental units in Vancouver
- Calls for government policy changes
What: Vancouver's condo development industry is in decline, leading to layoffs and asset sales by major developers and marketing companies.
When: Decline ongoing since 2022. Layoffs announced last week (Wesgroup) and prior to that (Rennie Group). Coromandel Properties applied for creditor protection in early February 2023. First quarter of this year (2025) saw 22% of land sales over $5M as court-ordered. Article published June 27, 2025.
Where: Vancouver, British Columbia, Coal Harbour.
Why: Rising costs, increasing complexity, rapidly shifting economic environment, inflation, soaring interest rates, world politics, government policies (curbing speculation, reducing international students/temporary migrants, short-term rental restrictions, foreign buyer/empty homes taxes). Investors have backed off.
How: Developers are delaying projects, laying off staff (Wesgroup 12%, Rennie Group 25%, Magnum Properties 5 staff), selling off assets (quietly, sometimes at discounts to insiders), and facing insolvencies and court-ordered sales. Industry leaders are advocating for reduced municipal fees and lifting the federal foreign buyer ban.