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The number of condo presale units released for sale in 2019 fell sharply in Metro Vancouver, as developers responded to demand that fell off a cliff.

Developers put 7,588 units up for presale, less than half the 18,998 released in 2018.

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The drop was more pronounced for more expensive, concrete condos in high-rise towers than for wood-frame units in smaller, low-rise developments, according to Michael Ferreira of Urban Analytics, which tracks data for the real estate industry.

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Developers held back on larger, concrete projects because they weren’t sure they could sell enough presale contracts to qualify for bank financing in the allowed time period of nine months, said Ferreira.

He said it is much harder to presale towers that are 40 to 50 storeys and have some 400 to 500 units than it is for a less-expensive, low-rise or townhome development of only 80 units. Lenders typically expect developers to lock up presales for 60 to 70 per cent of units before providing money for construction.