Development land sales activity across the Lower Mainland has remained relatively slow over the past several quarters as higher interest rates, elevated construction costs, and continued uncertainty around project feasibility have caused many developers to take a more cautious approach to acquisitions. Financing challenges and softening presale conditions have particularly impacted larger or more speculative projects, resulting in fewer transactions and longer marketing timelines across many development asset classes.

Despite the slowdown in overall transaction volume, developers continue to actively search for new opportunities to fill their future development pipelines and keep internal construction and development teams active during slower market conditions. As a result, there continues to be demand for well-priced and well-located sites, particularly for lower-density, wood-frame multifamily and townhouse developments, which are generally viewed as more achievable and lower-risk projects in the current environment. These asset classes continue to see stronger relative demand due to more manageable construction costs, financing requirements, and end-user pricing compared to larger concrete high-rise projects.

Transit-oriented and high-growth submarkets remain a primary focus for many active groups. Areas such as Marine Gateway continue to attract attention due to their direct rapid transit connectivity, ongoing residential densification, and established mixed-use infrastructure. Similarly, Burke Mountain remains one of the region’s key long-term growth markets, with continued residential expansion, population growth, and strong demand for family-oriented housing product, supporting developer interest in townhouse and low-rise development opportunities.

While the market remains selective overall, developers with longer-term investment horizons continue to position themselves for the next cycle by targeting strategic sites in fundamentally strong locations. As borrowing conditions stabilize and confidence gradually returns, activity is expected to improve, particularly for development opportunities that align with current market demand and achievable construction economics.

Written by Roderick MacKay and Meg Cooney for William Wright Commercial.