Land Market Adjusts as Developers Refocus and Opportunities Emerge - VARING & WESTERN INVESTOR

Slowdown Hits Land Sales in Metro Vancouver

Across Metro Vancouver and the Fraser Valley, the land market is undergoing a period of recalibration as developers reassess costs, timelines, and demand. While activity has slowed, this shift is also creating space for price discovery and strategic opportunities.

“In the Fraser Valley, residential land transactions are down over 80 per cent in the past two years,” said Joe Varing, principal at Varing Marketing Group. “There were about 40 transactions in 2022–2023, compared to fewer than 10 between 2024–2025.”

Many developers are shifting their focus to pre-sales and project completion rather than land acquisition. “Cash flows aren’t penciling out in the same way,” Varing noted. “Land is tougher to finance given the current municipal cost structures, and revenue expectations have shifted.”

Still, this presents an opening for well-prepared buyers. A growing number of listings—including both entitled and unentitled land—means increased options for those actively looking.

“There’s a lot of inventory on the market,” Varing said. “But buyers are being selective. This trend is likely to continue for the rest of the year unless we see more consumer momentum and support from government.”

He adds that removing red tape for approved sites could help unlock more activity. “We need support from all levels of government to help get buyers engaged again. Many projects launching for 2025 are competing for the same pool of buyers.”

According to data from Avison Young, 22% of land transactions over $5 million in Q1 2025 were court-ordered—a sign of ongoing price discovery. Meanwhile, development fees in some areas are rising faster than land values.

Despite this, optimism remains. Developers continue to look for well-located, high-potential sites, and some groups are actively repositioning to take advantage of softening prices and future growth.

As Varing sums up, “The fundamentals haven’t disappeared. This is a period of adjustment—but with the right steps, it can also be a time of opportunity.”