The Vancouver Business Thread

[officedweller]

Ivanhoé Cambridge will now operate as La Caisse.
https://www.ivanhoecambridge.com/en/news/2025/06/ivanhoe-cambridge-will-now-operate-as-la-caisse/

[jollyburger]

Layoffs at Wesgroup add to Vancouver condo industry’s woes

In a statement, Wesgroup confirmed it is delaying "a number of upcoming projects" and reducing the size of its team "for long-term sustainability," but declined to provide details about the number of layoffs, the departments affected or the company's size.

The company has 201-500 employees according to its LinkedIn page, though its website contains a reference to 185 employees. It has been involved in large developments like River District in Vancouver, Inlet District in Port Moody and Brewery District in New Westminster.

The news comes weeks after Vancouver real estate marketing firm Rennie & Associates Realty Ltd. announced layoffs due to geopolitics, artificial intelligence and other industry upheavals.

https://www.biv.com/news/real-estate/lay...-vancouver-condo-industrys-woes-10838462

[GenWhy?]

"declined to provide details about the number of layoffs, the departments affected or the company's size."

I thought I read somewhere yesterday the exact departments impacted? (I mean it as like 8 departments)

[jollyburger]

Originally Posted by GenWhy?

"declined to provide details about the number of layoffs, the departments affected or the company's size."

I thought I read somewhere yesterday the exact departments impacted? (I mean it as like 8 departments)

Update: In a further statement Friday, Wesgroup said the size of its team was reduced by 12 per cent this week, and that the company remains "in a fiscally sound position."

https://www.biv.com/news/real-estate/lay...-vancouver-condo-industrys-woes-10838462

[whatnext]

Speaking of layoffs, maybe we shouldn't be relying on tech to take-up office space going forward:

Vancouver software company Klue Labs cutting work force in half for AI reboot
Joe Castaldo
Published 2 hours ago

Vancouver software company Klue Labs Inc. is preparing to lay off up to half its work force, or about 100 people, to reposition itself for the artificial intelligence age.

Co-founder and chief executive Jason Smith told The Globe and Mail that he informed staff about the restructuring last week and said that Klue is finalizing plans for layoffs to be implemented this coming Wednesday.

“We need to do this because it’s a wake-up call for companies that aren’t AI native to start to think that way,” he said, adding that the restructuring is not because of financial concerns or a lack of funding.

While the number of layoffs could change, Mr. Smith said that it could affect between 40 per cent and 50 per cent of the company.

Klue, which makes AI-powered business intelligence tools for sales professionals to gather information on competitors, has to reboot as a result of AI, according to Mr. Smith. Generative AI tools have become more adept since the release of ChatGPT in late 2022, forcing software-as-a-service (SaaS) companies founded before that date to drastically rethink operations, he said.....

https://www.theglobeandmail.com/business...-labs-cutting-work-force-in-half-for-ai/

[s211]

Originally Posted by officedweller

Ivanhoé Cambridge will now operate as La Caisse.
https://www.ivanhoecambridge.com/en/news/2025/06/ivanhoe-cambridge-will-now-operate-as-la-caisse/

size seven, bolded eye roll

Ugh... Quebec Inc. isn't exactly a brand that will sell that well out west.

[jollyburger]

Originally Posted by s211

size seven, bolded eye roll

Ugh... Quebec Inc. isn't exactly a brand that will sell that well out west.

It's a real estate fund they aren't selling t-shirts.

[jollyburger]

B.C. builders welcome NDP changes to development cost charges as housing starts falter

The NDP government is making changes to development cost charges that builders say could help reduce the burden they face as material and labour costs continue to increase and the number of projects under construction drop.

Starting in 2026, builders will only have to pay 25 per cent of their fees to municipalities up front and will be able to defer the remaining 75 per cent for four years or until people move into the building.

The fees help cover the cost of infrastructure such as community centres, roads, sewers and parks.

https://vancouversun.com/news/bc-builders-welcome-ndp-changes-to-development-costs

[jollyburger]

The B.C. provincial government is giving a boost to the tax credit it gives to the digital media industry.

Announced at gaming giant Electronic Arts’ (EA) office, currently located in Burnaby, B.C. Premier David Eby said the tax credit of 17.5 per cent will now be increased to 25 per cent.

https://vancouver.citynews.ca/2025/07/07/b-c-tax-cuts-video-game-industry/

[jollyburger]

BC Extended The REDMA Presale Period To 18 Months. Will It Make A Difference?

To address this, the BCFSA's new pilot program extends the presale period from 12 to 18 months for projects with 100 or more units and in-stream projects — projects that had already started their clocks — were also eligible. Upon inquiry, the BCFSA told STOREYS last week that a total of 22 projects have secured the extension. According to BCFSA records, some of those projects include Onyx by Polygon, Vivere by Solterra, Sky Living by Allure Ventures, Manhattan by ML Emporio, and 102 + Park by Marcon.

"I would say that, on the MLA client side, we have not seen any clients make a go-decision purely based off of that REDMA extension," says Garde MacDonald, Director of Advisory at presale marketing and sales firm MLA Canada. "I would also say that it hasn't made a difference in the market. The way that I would put it is 'too little, too late.' The presale market has been very slow for about 2.5 years or 3 years, depending on the area. The fact that they brought it into play earlier this year was just a little bit too late, even though it was well-intended in theory."

Asked whether the change would've had a greater impact if there wasn't the 100-unit requirement or if the extension was to 24 months, MacDonald says he believes it would've had more of an impact if the 18-month period applied to all projects, not just those with 100 or more units.

"I think that if it applied to all projects, you would see some low-rise six-storey projects get across the line that wouldn't be able to otherwise. I think that 100-unit number felt a little cherry-picked, just given the fact that there are a lot of six-storey low-rise projects in the Fraser Valley that end up between 60 to 90 units. I think it would've made a marginal difference, but overall whether it's all projects or two years, I still don't think the fact that it came into effect this year would've made a huge improvement because of how poor the sales performance has been across the board in presale."

MacDonald says there's been 38 presale launches (with a total of roughly 4,300 units) so far this year, which is about 25% to 35% below a normal year, which would be closer to 60 launches and 6,500 units at this time of the year. That reduced amount of launches is another indicator that the REDMA change has not really made a significant difference, says MacDonald, who adds that sales absorption is also down about 60% to 70%.

Developers are surveying the landscape and are not seeing the requisite signs that makes them confident they can sell somewhere between 60% to 80% of their units within 18 months. Thus, they are not launching. The clearest sign of this, says MacDonald, is that there has been just one single presale launch on a new concrete high-rise tower so far this year — Marcon's 102 + Park near Surrey Central Station — that isn't leasehold or the second phase of an already-in-progress project.

"I think the fact that we're seven months into the year and there's been one new concrete tower brought to market really tells you a pretty clear story of the state of affairs in presale," he said. "Unless there is financial pressure or construction timeline pressure, I anticipate the second half of the year, in terms of new launches, to be quieter than the first half. One of the reasons I say that is because many developers who look towards the fall always kind of base their decisions on what happened in the spring market. And because our spring market this year was basically a supply story with very, very little demand, I don't forsee anybody looking at the spring market and feeling confident in bringing their project to market in the fall."

https://storeys.com/bcfsa-redma-18-months-vancouver-presale-market/

[osirisboy]

God forbid they lower their prices.

[Changing City]

Originally Posted by osirisboy

God forbid they lower their prices.

How does that work?

They paid whatever they paid for the land. The permits have been paid for. Trades work for the rate for the job, and wages aren't falling. Material costs aren't falling either - with US tariffs, some are going up. And construction loans aren't getting lower - typically they're higher than homeowner mortgage rates. There are some government lower interest construction loans for rental projects, but not for condos.

[whatnext]

Originally Posted by Changing City

How does that work?

They paid whatever they paid for the land. The permits have been paid for. Trades work for the rate for the job, and wages aren't falling. Material costs aren't falling either - with US tariffs, some are going up. And construction loans aren't getting lower - typically they're higher than homeowner mortgage rates. There are some government lower interest construction loans for rental projects, but not for condos.

Why do you always sound like you do t want land prices to fall? What other route will truly afford affordability? Being allowed to subdivide your condo so you can sell off a bedroom?

[Changing City]

Originally Posted by whatnext

Why do you always sound like you do t want land prices to fall? What other route will truly afford affordability? Being allowed to subdivide your condo so you can sell off a bedroom?

I wasn't addressing the question of land value. The context of the comment was developers lowering the price of projects that they have put on hold. In those examples, they've already bought the site. (That's also true for tens of thousands of other future projects where the developer has already acquired the site).

There's no way the economics can work to build those projects unless they take a loss, go bankrupt (if they've borrowed funds to buy the land), or the other costs like labour and/or materials fall.

Land values are already falling a little, both as assemblies for new projects as house prices are dropping a bit (and most of the value is in the land), and as a few over-stretched developers have been forced into court-ordered sales. Those often seem to be being picked up by other, better financed developers for rental projects.

If interest rates were pushed up again the market would face greater pressure, and some owners would be forced into selling up and losing money, and more developers would face financial pressure. But even then, it would probably be a while before prices fell significantly. (In June detached home prices in the Greater Vancouver Board were down 3.2% in a year, and 4.6% in the Fraser Valley Board area. Condos were also down 3.2% in Greater Vancouver, and 4.5% in the Fraser Valley.)

For a while, the market for resales has been slowing down, and the sales of new condos has nearly stopped. There are no foreign buyers, and no Airbnb. Are home prices falling significantly yet?

[whatnext]

There's been plenty of coverage of the drop in Canadian visiting the USA but not much of this. I wonder why visitors from France would decline so much?

B.C. sees fewer international visitors for fourth straight month
The 7.4 per cent decline in international visits to B.C. in May follows declines in February, March and April
Glen Korstrom
about 19 hours ago

B.C.'s tourism industry is seeing a worrying trend: four straight months of fewer international visitors entering Canada through the province's entry points up to May.

This underscores the value of domestic tourism. The industry's hope is that those visitors could help pick up the slack, with fewer British Columbians heading on trips to the U.S.–perhaps in part to protest U.S President Donald Trump invoking tariffs and threats to the country's sovereignty.

Destination British Columbia in late July released data showing 477,343 international visitors entered Canada through B.C. entry points in May, and stayed at least one night. That is down 7.3 per cent from May 2024, and down 22.5 per cent from the same month in 2019. Same-day traffic by Americans to Canada through B.C. ports was also down, by 0.4 per cent year-over-year.

The sluggish May performance came on the heels of similarly quiet tourism months in February, March and April. Overnight international visits to Canada through B.C. entry points in those months fell 8.9 per cent, 8.4 per cent and 5.1 per cent sequentially year-over-year.....

... tourism advocates told BIV this spring that as many as five U.S. corporate gatherings planned for Vancouver were recently cancelled due to a mix of geopolitical or economic reasons. One rationale for the cancellations is that U.S. residents who are not U.S. citizens do not want to attend Canadian events because they fear not being allowed back into their country...

...France was the country with the biggest decline year-over-year in May for nationals through B.C. making overnight visits to Canada after entering through a B.C. entry point.

Only 2,357 French nationals did that in May, down 24.5 per cent from the same month in 2023...

https://www.biv.com/news/hospitality-mar...itors-for-fourth-straight-month-11014713

[giallo]

Those numbers aren't great.

I think a big part of it is due to the global economy. It feels like we're on the precipice of a global recession. Also, BC isn't a cheap travel destination (one look at hotel prices in Vancouver/Victoria/Kelowna will confirm that). International travellers are staying closer to home or choosing cheaper international destinations.

[csbvan]

Originally Posted by giallo

Those numbers aren't great.

I think a big part of it is due to the global economy. It feels like we're on the precipice of a global recession. Also, BC isn't a cheap travel destination (one look at hotel prices in Vancouver/Victoria/Kelowna will confirm that). International travellers are staying closer to home or choosing cheaper international destinations.

Just as Canadians are - and this is likely to offset the drop in overseas tourists. Hopefully the World Cup and hotel boom (which I assume will drop hotel prices) help to make BC a more attractive destination in the coming years.

[whatnext]

Originally Posted by giallo

Those numbers aren't great.

I think a big part of it is due to the global economy. It feels like we're on the precipice of a global recession. Also, BC isn't a cheap travel destination (one look at hotel prices in Vancouver/Victoria/Kelowna will confirm that). International travellers are staying closer to home or choosing cheaper international destinations.

I still find it weird that France dropped so much. Germany was only down about 8% and they seem more exposed to an economic downturn. The UK drop is about the same, yet France is three times more.

[whatnext]

For those who missed it:

BC Hydro says Site C dam near Fort St. John now fully operational
VICTORIA — B.C.'s minister of energy and climate solutions said Site C won't be the last major energy project in the province after becoming fully operational ahead of schedule. The dam in northern B.C.
Wolfgang Depner, The Canadian Press
2 days ago

B.C.'s minister of energy and climate solutions said Site C won't be the last major energy project in the province after becoming fully operational ahead of schedule.

The dam in northern B.C. is now able to generate 1,100 megawatts of electricity -- enough to power half a million homes per year -- after the sixth and final power-generating turbine came online. The first of the six turbines started to generate power in October 2024....

https://www.biv.com/news/resources-agric...t-st-john-now-fully-operational-11055720

[svlt]

"We won't need the power for the next two decades" - 2017

"We'll need to build new generating stations, yesterday" - 2025