UDI Statement on the City of Vancouver Mayor’s Presales Housing Motion

UDI Statement on the City of Vancouver Mayor’s Presales Housing Motion:

UDI members already sell the vast majority of multi-family housing units, over 90%,  to local buyers, which is often a bank construction financing requirement. In addition to limiting presales to foreign buyers, banks also discourage bulk purchases of units to further inhibit speculative sales and decrease financial risk.

A developer has nine months to achieve its project pre-sale requirements for financing depending on their bank’s prerequisite, although this is not the deadline for complete sellout of the project.  An additional 3-month window is provided for the developer to get additional financing to receive their building permit.

While the city’s new policy framework may have public appeal, UDI recommends the City increase supply through density bonuses, reduced fees or expedited building approvals, all of which would improve affordability for locals and working professionals.

-Anne McMullin, President & CEO, Urban Development Institute (UDI)