Vancouver’s condo market is under pressure as a growing supply of new units remains empty, raising questions about affordability, construction costs and long-term demand.
BNN Bloomberg spoke with Oleg Galyuk, a real estate agent with Royal Pacific Realty, who said estimates of unsold condos could reach 3,500 by year-end, with absorption slowed by shifting buyer preferences.
Key Takeaways
- CMHC estimates 2,500 unsold condos in Metro Vancouver, though some projections suggest up to 3,500 by year-end.
- Investor-focused designs and small layouts are failing to attract end users.
- Older condos with better floor plans and parking remain more popular with buyers.
- Vacant units create challenges in new buildings where developers retain voting power.
- Developers are using incentives, including steep discounts, to move inventory.
Read the full transcript below:
ANDREW: There are apparently 2,500 unsold and empty condos in the Vancouver region, according to CMHC. Let’s get perspective from an industry player on the ground. We’re joined by Oleg Galyuk, real estate agent with Royal Pacific Realty. Thanks very much for joining us.
OLEG: Thank you for having me.
ANDREW: Does that sound plausible, that there could be 2,500 unsold condos right now?
OLEG: Yes, and I think that could even be an understatement. At the moment, there’s no reliable way to know how many brand new condos are sitting unsold, because developers don’t have to report those numbers. These are all estimates, and I’ve seen projections as high as 3,500 by the end of this year.
ANDREW: One thing you’ve said before really caught our attention — buyers are often more interested in older condos, while newer builds are less attractive. Why is that?
OLEG: That’s correct. Developers put too much emphasis on investor-focused condos. They were designed to optimize price per square foot and attract investors, but those aren’t necessarily the homes people want to live in. Since many investors have exited the market, those units sit unsold. By contrast, older condos often have better floor plans and parking, which are much more attractive to first-time buyers and end users.
ANDREW: Has the industry simply built too many small units — 500 or 600 square feet?
OLEG: In my opinion, yes. That was the main focus: small units marketed as better rental investments. Those were always the easiest for developers to sell in pre-sales.
ANDREW: Because small investors only have so much money to put in. Is there a risk that some buildings could be left with a lot of empty units, where owners struggle to cover maintenance fees?
OLEG: That’s another issue we’re starting to see. These aren’t future pre-sales — they’re completed buildings with ready inventory. In some cases, people are moving in while other units sit vacant. That creates situations where the developer still owns a large share of the building, which means they hold significant voting power in strata decisions. That can be a concern when it comes to maintenance and upgrades.
ANDREW: But aren’t most of these condos pre-sold?
OLEG: A big portion was pre-sold, but what we’re talking about now is the leftover inventory that hasn’t moved.
ANDREW: I see. That could create tension, because the developer just wants to sell quickly and minimize costs, while residents want long-term improvements.
OLEG: Absolutely, especially in the early stages after a building is completed. There are always little things to address, and priorities don’t always align.
ANDREW: If we assume there are 2,500 condos, and possibly more, how long would it take the market to absorb that supply?
OLEG: That’s the million-dollar question. At the current absorption rate, it would take many months. New construction sales aren’t going well, and conditions would have to improve for inventory to clear. Some developers are offering heavy incentives, even flash sales with discounts of 25 per cent for a limited time, to move units.
ANDREW: Fascinating situation. Thanks very much for joining us, Oleg.
OLEG: Thank you.
ANDREW: Oleg Galyuk, real estate agent with Royal Pacific Realty.
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This BNN Bloomberg summary and transcript of the Oct. 2, 2025 interview with Oleg Galyuk are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
