Aug 11, 2025
Surrey developers switch condo projects to rentals – What it means for buyers
1. The market is slow and presales are hard
The housing market in Metro Vancouver has cooled because interest rates are high and people worry about the economy. There are fewer presale buyers. When people do not buy, builders have a tough time getting loans to build their towers because banks want to see a certain number of presales. Some builders also have loans on the land, so waiting costs them more money.
2. New towers change from condos to rentals
Several big projects in Surrey are now switching planned condo homes to rental homes. Tangerine Developments wanted to build two towers with 822 condo homes. The first tower was going to have 379 condos, but now those homes will be market rentals. The second tower will still have condos, but it will start later. Another project by Global Education Communities (GEC) on City Parkway was designed with 215 rental homes and 168 condos, but the plan now is to build all 387 homes as rentals. A third project called Sky Living by Allure Ventures planned 449 condos in a tall tower and two smaller podium buildings. They cut the total home count to 422 and turned 207 of those homes into rentals.
3. Why developers choose rentals
Builders say they are changing their plans because presales are weak and people are cautious about spending money. Switching to rentals means they can still move forward without meeting strict presale rules. Making rentals can also help them get better financing and city incentives such as lower fees. For example, the GEC project will create housing that helps nearby universities and the new medical school. Changing some condos to rentals also helps the city meet its need for more rental homes.
4. What this means for buyers and renters
Turning planned condos into rentals means there will be more rental homes in the short term. This could help students, workers and families find places to live. The City of Surrey says it needs thousands of new rental homes by 2028. More rentals may ease pressure on the market now. But experts warn that replacing condos with rentals reduces ownership choices later on. People who want to buy may not know they are buying into buildings with many rentals, and younger buyers could find fewer condos when they are ready to purchase.
5. Looking ahead
The pivot to rentals shows how builders are adapting to a changing market. It lets them keep projects going, provide much-needed rental homes, and wait for better times to build condos. For buyers, it means understanding the mix of rental and ownership homes in each project. For renters, it could mean more options. The wider market still depends on interest rates, economic confidence, and government policy. It may take years before condo supply catches up.
Sources: Storeys article about Surrey condo projects changing to rentals, Business in Vancouver report on city council approvals and developers’ reasons.
