There’s a "baseline" of presale home demand that remains attractive to developers in the Langley area of Metro Vancouver.

It is stoked by prices considered affordable relative to other regional cities, a rising population, and the city's improved connections to the region, says one of the community's busiest developers. 

While market struggles have caused many developers to slow or halt presale housing projects, and many buyers to stay on the sidelines, Zenterra Developments has remained eager to launch, sell and build new projects in Langley, and particularly in the Willoughby Heights area. 

Zenterra just announced it is previewing and taking deposits on Solana, a 230-unit project ranging from studios to two-bedroom condos. It’s the first phase of a multi-phased development at 80th and 200th streets. Residents of Solana, comprised of two six-storey wood-framed buildings, will have access to more than 90,000 square feet of indoor and outdoor amenities.

Is Langley bucking a trend of sluggish condo launches? 

"It's a good question," said Derek Fenton, vice-president with Zenterra.

Fenton said there are several reasons and motivations for his team to continue to launch in this Langley market. First, it will take a couple of years before the initial phase of Solana completes, and they're optimistic market conditions will improve over that time. 

Second, Langley's population continues to increase. Between 2019 and 2023, Langley Township grew by more than 20,000 residents. With a growth rate of 15.5 per cent over that period, the township topped Surrey as B.C.’s fastest-growing big city or town. Langley's population is estimated to be around 150,000. 

Third, "life happens", Fenton said, meaning that people will always need homes. "There's just this baseline of demand."

Presale absorption remains sluggish, for now 

Compared to other markets in the region, Langley seems to be bucking the trend in terms of its lower entry prices, Fenton said, noting prices to buy a home at Solana start in the $300,000s.

Ten condo projects were expected to launched in November in the Vancouver and Fraser Valley region, for an approximate total of 1,496 units offered for sale, according to MLA's latest presale report. That's down from 1,946 units in October, and up from the 1,079 units launched in September. 

"New presale project launch volume was in line with historical norms in October," said Garde MacDonald, director of advisory with MLA in the report. "Project competition remains extremely high as developers are having to cut through the noise by utilizing creative incentives to drive traffic and convert deals."

MacDonald said the current patience on behalf of buyers is shown in the nine per cent same-month absorption, which is near decade lows and indicates the trouble developers have when it comes to hitting presale financing targets.

Overall sales activity has surged though, with resales in Metro Vancouver climbing nearly 32 per cent year-over-year in October, according to the latest Greater Vancouver Realtors monthly report. 

The sales activity shows interest rate reductions are having an impact on the market, and that could eventually translate into progress in presales too. 

Those reductions are starting to pull mortgage rates down, Fenton said. Last October, most people were seeing mortgage rates above six per cent. "Now we're down well into the fours, and they were seeing a few rates in the high threes."

Buyers can afford "more home" these days. "I think that's been really helpful,” Fenton said, adding that most feel like the serious headwinds in the market are now behind us. 

Langley development activity remains robust 

Developers have told RENX the planned introduction of rapid bus service along 200 Street in Langley will also improve the desirability of the area, while work is underway on the $4.01-billion SkyTrain extension from Surrey’s King George station through Langley to Langley City Centre, located south of the Township. It is expected to open in late 2028.

Zenterra is primarily a six-storey, wood-frame developer that handles its own construction. In Willoughby, Zenterra alone has 3,000 homes in various stages of planning and development that could complete within the next five years.

In addition to Solana, Zenterra is pre-selling The Commons, a low-rise condo project that’s now roughly 90 per cent sold, Fenton said. It's also continuing sales on Latimer Walk, a townhome project also located in Willoughby that's about 50 per cent sold. 

Zooming out on the broader regional market, Fenton said interest rates and inflation remain the two main factors developers are dealing with. The cost to develop and construct homes in the region continues to climb, which means asking prices can’t really fall if developers hope to get their projects financed.