<p style="font-size:1.4em;font-weight:bold;">Surrey developers switch condo projects to rentals – What it means for buyers</p>

<p style="font-size:1.4em;font-weight:bold;">1. The market is slow and presales are hard</p>
<p>The real estate market in Metro Vancouver has cooled because interest rates are high and people are unsure about the economy. Buyers are sitting on the sidelines and there are fewer pre-sale buyers. Developers need a certain number of pre-sales before banks will give them money to build their towers. When people are not buying, it is very hard for builders to get financing. Some developers also have mortgages on the land, so delaying their projects would cost them more money.</p>

<p style="font-size:1.4em;font-weight:bold;">2. New towers change from condos to rentals</p>
<p>Several big projects in Surrey have been redesigned to include more rental homes. Tangerine Developments planned to build two towers with 822 condo units. The first tower was supposed to have 379 condos, but now all of those units will be market rentals. The second tower will remain condos, but it will be built later. Another project by Global Education Communities (GEC) on City Parkway was originally designed with 215 rental units and 168 condos. The plan now is for all 387 units to be rentals. A third project by Allure Ventures, called Sky Living, planned 449 condos across a high-rise tower and two smaller podium buildings. The developer has cut the total unit count to 422 and turned 207 of those units into rentals.</p>

<p style="font-size:1.4em;font-weight:bold;">3. Why developers choose rentals</p>
<p>Developers say they are revising their projects because pre-sales are weak and people are cautious about spending money. By offering rental homes instead of condos, builders can still move forward without meeting strict pre-sale requirements. Making rentals can also help them qualify for better financing and city incentives like reduced development fees. For example, the GEC project will provide housing that supports nearby universities, including a new medical school. Turning some projects to rentals also helps the city meet its needs for more rental homes.</p>

<p style="font-size:1.4em;font-weight:bold;">4. What this means for buyers and renters</p>
<p>Turning planned condos into rentals means there will be more rental homes in the short term, which could help students, workers and families find places to live. The City of Surrey says it needs about 20,148 new units for renters and 26,020 new units for owners by 2028. More rentals may relieve pressure on the market today. But experts warn that replacing condos with rentals will reduce ownership choices later on. Some people who want to buy may not know they are buying into towers with large rental portions, and younger buyers could find fewer condos available when they are ready to purchase.</p>

<p style="font-size:1.4em;font-weight:bold;">5. Looking ahead</p>
<p>The pivot to rental shows how developers are adapting to a changing market. It allows them to keep projects moving, bring much-needed rental units to the market and wait for better times to build condos. For buyers, it means a mix of rental and ownership units in each project. For renters, it could mean more options. The broader market still depends on interest rates, economic confidence and government policy, and it may take years before new condo supply catches up.</p>

<p><small>Sources: <a href="https://storeys.com/surrey-condos-pivot-to-rentals/">Storeys article on high-rise projects in Surrey pivoting to rentals</a>; <a href="https://biv.com/article/2025/07/surrey-city-council-approves-new-rental-units">Business in Vancouver report on Surrey city council approving new rental units and developers’ reasons</a>.</small></p>