Vancouver's new multiplex zoning rules are creating uncertainty in luxury neighbourhoods. Here's what high-end buyers and sellers need to know about this market shift.
Vancouver’s luxury real estate market is experiencing an unusual phenomenon: confusion about property values. The culprit? BC’s multiplex zoning legislation that’s fundamentally changing how buyers perceive high-end neighbourhoods.
The Multiplex Effect on Luxury Markets
Under Bill 44, local governments across British Columbia were required to allow residential buildings with up to six units on properties traditionally zoned for single-family homes. While this policy aims to increase housing supply, it’s creating unexpected ripple effects in Vancouver’s luxury market.
“Nobody knows what anything’s worth anymore because they basically made every property in Vancouver a potential redevelopment,” says Andrew Carros, COO of Engel & Völkers Vancouver.
The numbers tell the story. October 2025 sales-to-active-listings ratios reveal buyer’s markets in traditionally prestigious neighbourhoods:
- Point Grey: 0.11
- Shaughnessy: 0.05
- Coal Harbour: 0.07
- West Vancouver: 0.08
These ratios below 0.12 indicate downward pressure on prices—a clear buyer’s market where sellers have less leverage.
The Luxury Buyer’s Dilemma
For buyers considering multi-million dollar purchases, the uncertainty cuts deep. The fundamental value proposition of luxury real estate—exclusivity, privacy, and consistent neighbourhood character—is now in question.
“If you’re looking to pay a significant amount for a luxury home, typically those buyers are not looking for multiplex neighbours right beside them,” explains Kingsley Ma, area vice-president with Re/Max Canada. “They pay more for luxury for a particular reason, not so much to live with stratas right beside them.”
The concern is practical: why invest $5-10 million in a single-family estate if the property next door could be redeveloped into a sixplex? The perceived value of privacy and exclusivity diminishes when neighbourhood density becomes unpredictable.
Developer Economics: A Reality Check
Despite the zoning changes, the actual threat of widespread luxury redevelopment may be overstated. The economics simply don’t work in many high-end markets.
“That’s quite a risk for developers to take in a luxurious market. Like, who’s your buyer? What’s going to be your profit profile?” asks Jesse Dean Cook of Royal LePage Sussex.
Several factors make luxury multiplex development challenging:
High Barriers to Entry
- Expensive land acquisition costs in premium neighbourhoods
- Substantial permitting and construction expenses
- Infrastructure upgrade requirements
- Legal and professional fees
- Vacancy taxes on unoccupied units
Limited Market Demand
- Fewer buyers for luxury multiplex units
- Competition from purpose-built luxury condos
- Uncertain rental markets in high-end areas
Preservation of Premium Assets
Waterfront properties and homes with exceptional views are highly unlikely to be redeveloped. The land value alone often exceeds what developers could realize from multiplex construction.
Market Data: Luxury Holding Strong
Interestingly, despite the uncertainty, Vancouver’s luxury market isn’t collapsing. According to Brendon Ogmundson, chief economist with the BC Real Estate Association, luxury sales remain close to their 10-year average—even as the broader market runs 20-25% below historical norms.
Some neighbourhoods are even showing seller’s market conditions (ratios above 0.20):
- Kitsilano: 0.28
- Fairview: 0.32
- Kerrisdale: 0.22
- Lynn Valley: 0.21
- Central Lonsdale: 0.21
What This Means for Buyers and Sellers
For Luxury Buyers
Opportunities are emerging. The uncertainty has created negotiating leverage in traditionally strong seller markets. Buyers with conviction about neighbourhood stability can find value.
Do your homework. Research the specific block, understand neighbouring properties, and assess realistic redevelopment potential. Properties with unique characteristics (views, waterfront, heritage status) carry less redevelopment risk.
Think long-term. Market psychology often overreacts to policy changes. The practical reality of multiplex economics may differ significantly from the perceived threat.
For Luxury Sellers
Price realistically. Acknowledge the market conditions and buyer concerns. Overpricing in a buyer’s market extends time on market and further weakens your position.
Highlight stability factors. Emphasize aspects that reduce redevelopment likelihood in your neighbourhood—established character, view corridors, heritage designations, or physical constraints.
Tell the story. Help buyers understand what makes your property and location special beyond simple zoning considerations.
The Bigger Picture: Policy and Perception
Carros points to what he sees as a “double whammy”—policy uncertainty combined with market softness. “It’s very hard to make a decision in Vancouver based on how the federal, provincial and city [governments] have been targeting these higher-end homes in the first place.”
The luxury market faces multiple headwinds:
- Foreign buyer taxes and restrictions
- Speculation and vacancy taxes
- Increased property transfer taxes on high-value homes
- Now, multiplex zoning uncertainty
Looking Ahead: Market Adaptation
Markets eventually adapt to policy changes. As the initial shock of multiplex zoning settles, expect:
- Clearer valuation models that account for redevelopment potential vs. neighbourhood stability
- Neighbourhood differentiation where some areas embrace density and others maintain exclusivity
- Premium pricing for properties with built-in protection from nearby redevelopment
- Development activity concentrated in transitional areas rather than established luxury enclaves
Rain City Properties’ Perspective
The multiplex zoning changes represent a fundamental shift in Vancouver real estate. While uncertainty exists, opportunity follows disruption.
For buyers, this environment creates negotiating power in markets that have historically favored sellers. For sellers, realistic pricing and strategic positioning become more important than ever.
The key is working with advisors who understand both the policy landscape and practical market realities. Properties aren’t just lots and buildings—they’re investments in neighbourhoods, lifestyles, and long-term value.
Understanding how multiplex zoning specifically affects your property or target neighbourhood requires local expertise and market intelligence. That’s where experienced Vancouver real estate professionals prove invaluable.
Questions About Your Luxury Property?
Whether you’re buying or selling in Vancouver’s evolving luxury market, understanding how multiplex zoning affects your specific situation is crucial. Every neighbourhood—and every property—faces different realities.
Let’s discuss how these changes impact your real estate goals and what strategies make sense for your circumstances.
Greyden Douglas specializes in Vancouver’s west side real estate market, including areas affected by recent zoning changes. For personalized advice about buying or selling luxury properties in the current market, reach out to Rain City Properties.