Jan 24, 2026 Real Estate News Update

Metro Vancouver's housing market has entered a decisive buyer-driven phase, with over 80% of homes selling below asking prices at a median discount of 2.4%. The luxury segment faced the most dramatic correction, with all 26 properties above $10 million selling below asking at a median 19.2% discount, while overall sale prices dropped 3.8% year-over-year to a median of $913,000. Geographic variations reveal significant opportunities, as premium areas like West Vancouver maintain highest values while Surrey and New Westminster offer compelling entry points.

Transaction volumes tell an equally compelling story: December 2025 sales fell 11.5% year-over-year to just 2,378 units, with full-year sales dropping to 35,350—the lowest level since 2000 and representing a 50% decline from the 2021 peak. The rental market simultaneously shifted in favor of tenants, with average one-bedroom rents declining $182 year-over-year to $2,111 monthly while Vancouver renters now save approximately $2,011 monthly compared to mortgage holders, translating to roughly $24,000 in annual savings.

Regulatory enforcement has intensified dramatically across multiple fronts. The CRA completed 14,854 real estate audits in fiscal 2024-2025, up 2,100 from the prior year, resulting in $849 million in taxes and penalties, with particular focus on property flipping, unreported lifestyle assets, and GST/HST issues. The BC Court of Appeal reinforced foreign buyers tax provisions by ruling that trustees holding property for foreign beneficiaries must pay tax on the full purchase price—a Richmond couple now faces an additional $70,000 in taxes on their $474,500 condo despite structuring ownership as 95% Canadian.

Development activity continues selectively despite market headwinds, with Vancouver City Council approving a 25-storey student housing tower at Langara SkyTrain station featuring 650 beds and generating an estimated $13 million in annual rental income, while Telus commenced construction on 55 market rental homes in Point Grey. The downtown office market reached 14.9% availability in Q4 2025—the highest since 2003—yet major transactions signal confidence, including BGO's $239-252 million acquisition of Oceanic Plaza at 96% occupancy and KingSett's $125 million purchase of 700-750 West Pender.

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Over 80% of Metro Vancouver homes sold below final asking price in 2025

Metro Vancouver's 2025 housing market showed significant buyer leverage, with over 80% of homes selling below asking prices at a median discount of 2.4%. The luxury segment experienced the most dramatic shifts, with all 26 properties above $10 million selling below asking with a median 19.2% discount, while overall sale prices dropped 3.8% year-over-year to a median of $913,000. Geographic variations were substantial, with premium areas like West Vancouver and Belcarra maintaining the highest values while Surrey and New Westminster recorded lower medians.

Richmond realtor gets house arrest for forging dead man's name

A Richmond realtor received a six-month conditional sentence, including four months of house arrest, after pleading guilty to forging a deceased person's signature on a condo transfer document. The realtor had facilitated a $385,000 pre-sale condo purchase for a man who later gifted $320,000 to the realtor's mother and passed away before the transaction closed. Despite the man's apparent intention to transfer the property to the realtor's mother, the court emphasized that the deliberate forgery constituted a serious breach of professional trust. The realtor had already faced civil litigation, a $7,500 fine from BC Financial Services Authority, a three-month license suspension, and has since left the real estate profession.

The CRA could audit you for these 10 real estate issues

The CRA completed 14,854 real estate audits in fiscal 2024-2025, up 2,100 from the prior year, resulting in $849 million in taxes and penalties. The agency continues to focus on ten key areas of non-compliance including property flipping (often misreported as capital gains rather than fully taxable business income), unreported lifestyle assets, non-resident transactions, and GST/HST issues on new construction. Realtors themselves are included in the CRA's risk-assessed populations due to the high transaction volume inherent in the profession. All real estate sales in Canada, including principal residences, must now be reported to the CRA even if there is no taxable gain.

Vancouver renters see surprisingly huge savings compared to mortgage holders

Vancouver renters save approximately $2,011 monthly compared to mortgage holders, translating to roughly $24,000 annually, according to Zoocasa's analysis using a 25-year amortization at 3.89% interest. British Columbia exhibits some of Canada's widest rent-versus-own disparities due to property values significantly outpacing rental rates, with similar patterns in Surrey ($1,957 monthly savings) and Victoria ($1,413 savings). Only Manitoba and Saskatchewan favor homeownership, with Regina and Winnipeg showing modest monthly savings for mortgage holders.

Vancouver City Council approves $3-million Downtown Eastside street cleaning

Vancouver City Council approved nearly $3 million over three years to sustain Mission Possible's expanded street-cleaning and employment program in the Downtown Eastside, including $920,000 for 2026 and provisional $1 million grants for 2027-2028. The Project Hope initiative creates low-barrier employment opportunities for people experiencing homelessness and poverty while delivering enhanced cleaning services, having collected over 17,000 garbage bags and 26,700 needles through November 2025. Future funding remains contingent on annual budget approvals and performance compliance.

B.C. Court of Appeal rules couple must pay full amount of foreign-buyers tax

The BC Court of Appeal ruled that a couple must pay the foreign-buyers tax on the full purchase price of their $474,500 Richmond condo, requiring an additional $70,000 in taxes. The couple had registered ownership as 95% for a Canadian citizen and 5% for her Chinese fiancé, only paying the tax on the 5% portion, even though he had funded 40% of the purchase. The court determined the Canadian citizen was a ""taxable trustee"" holding property for the benefit of a foreigner, which the legislation explicitly requires to pay the tax. The ruling reinforces that the foreign-buyers tax provisions are drafted to capture multiple ownership structures and prevent tax avoidance by foreign investors.

This Week’s Top Stories: Canadian Real Estate Correction Deepens, & Outlook Worsens

BMO reports Canadian real estate prices have fallen to 2017 levels when adjusted for inflation, despite nominal prices recovering to 2021 levels, driven by affordability challenges and shifting buyer priorities. December saw the second-largest monthly price drop on record alongside record new listings and weakening sales, while consumer pessimism intensified with 71% of Canadians expecting worsening conditions in 2026. The correction shows signs of acceleration with urbanization stalling at 74.8% for the first time in decades and Canadian asking rents falling 0.7% to $2,060 monthly—the sharpest decline in four years.

Slowdown in real estate market could put 100,000 jobs at risk in Ontario: group

Ontario's new home sales market collapsed in 2025 with only 5,321 homes sold in the Greater Toronto and Hamilton Area—the worst year in 45 years of data collection—putting an estimated 100,000 jobs at risk across the province. December saw just 240 sales, down 24% year-over-year and 82% below the typical ten-year average, with particularly severe drops in condos (down 89% from average) and single-family homes (down 63%). Industry leaders are calling for eliminating the HST on all new homes while Royal LePage forecasts Toronto home prices will fall 4.5% year-over-year in 2026.

Bryan Yu: Buyer's market tightens its grip on Metro Vancouver

Metro Vancouver's housing market posted its weakest December sales since 2023, with transactions down 11.5% year-over-year to 2,378 units and average prices falling 6.3% to $1.127 million. Full-year 2025 sales dropped to 35,350 units, the lowest level since 2000, representing a 50% decline from the 2021 peak. The buyer's market conditions persist due to unaffordable housing, economic uncertainty over US-Canada trade relations, and ample rental inventory that reduces purchase urgency. While short-term trends remain weak, economists expect modestly higher sales and prices in 2026 as Bank of Canada rate cuts take effect, with more robust gains anticipated in 2027 when construction supply is throttled.

B.C. government signs major land use plan with First Nation on Vancouver Island

The BC government finalized the Gwa'ni Land Use Planning Project with the Namgis First Nation, affecting over 166,000 hectares of Crown land (approximately 5% of Vancouver Island) in the Nimpkish Valley near Alert Bay and Port McNeill. Provincial officials frame the agreement as advancing environmental protection and reconciliation through collaborative stewardship, including joint decision-making with Western Forest Products on Tree Farm Licence 37 operations. Conservative critics argue the plan represents "Land Act reform by stealth" that undermines public trust and discourages investment through regulatory unpredictability, referencing similar DRIPA proposals voters rejected in 2024.

Warren Buffett’s buy-and-hold real estate lesson — and why it still matters for Canadian homeowners

Warren Buffett's buy-and-hold approach to his personal residence offers important lessons for Canadian real estate investors. Buffett purchased his Omaha home in 1958 for approximately $30,000 (equivalent to $336,000 today) and has never moved, treating it as a long-term decision rather than a speculative investment. Research from RBC and CMHC shows Canadian homeowners often need five years or more to break even after transaction costs, with this timeline extending during periods of high prices or elevated mortgage rates. Long-term data shows Canadian home prices tend to rise over decades but not in straight lines, with transaction costs, property taxes, maintenance and mortgage interest eating into returns, making housing work best as a long-term hold rather than short-term speculation.

Pay parking at several Vancouver community centres officially begins next month

Year-round paid parking launches February 16, 2026 at Hillcrest, Kerrisdale, and Trout Lake community centres plus Langara Golf Course, with the first three hours free for facility patrons and $3.50 hourly thereafter. The Vancouver Park Board selected these locations due to consistently high parking demand and aims to generate up to $1.5 million annually for facility maintenance while improving access and reducing congestion. Staff, volunteers, vulnerable users, and Musqueam, Squamish, and Tsleil-Waututh Nations members will receive exemptions or discounted passes, though a petition opposing the expansion emerged last fall.

City of Vancouver's landfill in Delta to remain open for another 20 years

The City of Vancouver's 790-acre landfill near Burns Bog will continue operating until approximately 2050 under a new regional agreement, extending operations 20 years beyond the previous 2030 closure date. The extension will save regional residents and businesses over $300 million in cumulative tipping fees while generating approximately $5 million annually for Delta, plus $10 million for Burns Bog conservation and $500,000 in annual conservation funding. The facility handles 65% of Metro Vancouver's approximately one million tonnes of annual garbage and has expanded its methane capture network to 473 collection points, with 70% of gas flared and the remainder converted to renewable natural gas through a FortisBC partnership.

Vancouver mayoral candidate pitches plan to build 4,000 City-owned and affordable homes

OneCity Vancouver mayoral candidate William Azaroff proposes building 4,000 homes on six city-owned sites through a reinvigorated City of Vancouver Public Housing Corporation operating on break-even returns rather than profit-maximization. His plan differs from Mayor Ken Sim's rejected October 2025 proposal by partnering with nonprofits instead of private developers and requiring only a majority council vote rather than two-thirds approval. Azaroff argues the nonprofit model performs counter-cyclically during market downturns when contractors offer competitive bids and labor costs decline, with the mayoral election scheduled for October 17, 2026.

B.C. real estate associations renew call for ski resort exemption from foreign buyer ban

British Columbia real estate associations are renewing their call for the federal government to exempt Interior ski resort communities from the foreign buyer ban, arguing the policy is unintentionally harming local tourism-dependent economies. The Prohibition on the Purchase of Residential Property by Non-Canadians Act currently applies to nine BC Interior communities including Sun Peaks, Apex Mountain and SilverStar because they fall within Statistics Canada census boundaries, while other major ski destinations like Whistler, Big White, and Quebec's Mont Tremblant are exempt. The Association of Interior Realtors and BC Real Estate Association are urging the federal government and CMHC to issue a regulatory exemption, calling the inconsistent application ""a matter of fairness"" since homes in these mountain resort areas serve different purposes than those in population centers.

Downtown Vancouver office market in ‘slow-motion correction’

Downtown Vancouver's office market reached 14.9% availability in Q4 2025, the highest level since 2003, with overall vacancy at 12.1% and listings averaging 537 days on market. Amazon's consolidation added 246,000 square feet back to the market, emblematic of broader market unraveling, though return-to-office mandates in finance, technology, law and consulting sectors are requiring workers in-office at least four days per week. The market is experiencing a ""flight to quality"" with tenants prioritizing holistic lifestyle amenities, transit access, and upgraded experiential features like luxury food and beverage, wellness facilities, and pickleball courts. Office designers report an influx of opportunities to make spaces more ""magnetic"" with better acoustics, natural elements, and multifunctional work settings, though the impact on vacancy may be muted as some tenants exchange larger space for better quality space.

Posthaste: These three provinces are bucking Canada's housing downturn

While Canada's national housing market ended 2025 with sales and prices down approximately 4%, three provinces are bucking the trend with strong performance. Newfoundland and Labrador posted nearly double-digit price growth for the second consecutive year, the largest margin above the national average since the Global Financial Crisis, supported by solid economic conditions, affordable homes and healthy sales. Saskatchewan saw average home prices rise 9% in 2025 driven by firm job growth and comparatively strong economy, with continued above-trend growth expected despite anticipated cooling. Quebec City led all markets with 17% price gains in 2025, though rapid appreciation has begun to erode affordability and weaken resales in recent months, with forecasters expecting considerable slowdown ahead.

Vancouver councillor proposes new tools to hold bad-faith landlords accountable

Green councillor Pete Fry introduced a motion to expand business licensing requirements to landlords managing multiple rental units, conditioning licenses on compliance with both municipal standards and provincial tenancy regulations. The proposal addresses concerns about corporate landlords engaging in bad-faith evictions for Airbnb conversions, unsafe unpermitted subdivisions, tenant harassment, unauthorized surveillance, and unlawful short-term rentals that existing enforcement mechanisms cannot adequately prevent. The motion directs staff to develop bylaw amendments including annual renewals, mandatory disclosure of ownership and management information, posted license details in buildings, and enhanced penalties for violations, with endorsement from the City of Vancouver's Rental Advisory Committee.

2026 could see uptick in real estate sales in Vancouver region, says firm

Rennie & Associates forecasts approximately 38,000 real estate transactions in the Greater Vancouver and Fraser Valley region for 2026, representing a modest uptick from 35,236 sales in 2025 but still well below historical norms. The market has seen transactions plummet from the 2021 peak of 70,619 sales to roughly half that volume, with the firm's president questioning what the ""new normal"" will be and suggesting transactions may hover around 40,000 for the next two years. The persistent weakness stems from affordability crisis, cost-of-delivery challenges, persistent trade uncertainty, and a price mismatch between sellers' expectations and buyers' willingness to pay, compounded by Vancouver potentially experiencing its first-ever population decline in 2026. Developers are diversifying strategies, with many no longer calling themselves ""developers"" but rather being ""in real estate,"" focusing on acquiring and holding income rental properties rather than traditional land development.

Vancouver council considers proposal for rental tower on industrial land

Vancouver City Council is considering a controversial proposal for a 25-storey tower with 200 market rental units on industrially-zoned land at 320-360 West Second Avenue in Mount Pleasant, where residential use is not currently permitted. The application from Strand Development includes only 17% industrial space versus the required minimum of 33.3%, with residential accounting for 83% of floor area in an area where job space protection is the priority. City staff note the proposal conflicts with multiple policy frameworks including Metro 2050, the Vancouver Plan, the Broadway Plan, and the Industrial Lands Policy, with only 6% of Vancouver's land base zoned for industrial versus 90% for residential. Twenty-three current and former planners, architects and urban policy experts have signed an open letter opposing the project, calling it a ""speculative land grab"" that could drive up land prices, force out existing businesses, and set a precedent for further industrial land conversion in the area.

One of Canada's most severe housing gaps draws a $72 million bet

Vancity and Indigenous-owned private credit firm Keewaywin Capital have launched a $100 million partnership to address severe housing shortages and limited mortgage financing access in Indigenous communities. Under the arrangement, Vancity's investment bank subsidiary will provide up to $100 million in credit facilities covering up to 90% of individual project costs, with Keewaywin providing short-term construction financing for 18-24 months before Vancity steps in with long-term mortgages at completion. The model allows Keewaywin to focus on the riskiest construction phase while recycling capital into new projects, targeting returns of about 7% while charging borrowers roughly 9% during construction and 6-6.5% for Vancity's 20-year loans. The fund aims to finance between 300 and 500 housing units over five years, with the longer-term goal of proving the model's viability to attract institutional capital and force major banks to rethink their approach to lending on Indigenous lands.

BGO to buy Vancouver’s Oceanic Plaza from Oxford and CPP

BGO (formerly BentallGreenOak) has reached a firm deal to purchase Vancouver's Oceanic Plaza at 1066 West Hastings from co-owners Oxford Properties and CPP Investments, with industry sources indicating a purchase price between $239 million and $252 million. The 26-storey, 351,356-square-foot Class A office tower sits on over 41,000 square feet of land, has 96% occupancy with a 5.5-year weighted average lease term, and houses major tenants including Hatch Ltd., MLT Aikins, and the BC government. This transaction represents the latest in a series of high-profile downtown Vancouver office sales, following Oxford's $730 million buyout of CPP's stakes in several properties, KingSett's $125 million acquisition of 700-750 West Pender, and Amancio Ortega's $1.2 billion purchase of The Post. Despite rising vacancy rates, Vancouver maintains one of Canada's lowest office vacancy rates and highest average net asking rents, with industry observers viewing these transactions as reflecting positive outlook on the 2026 office market.

26-storey tower proposed for West Broadway near future SkyTrain station

Unicorn Properties submitted a rezoning application for a 26-storey mixed-use tower at 1668 West Broadway replacing a two-storey commercial building, located one block west of the planned South Granville SkyTrain station in Fairview. The 265-foot development would create 208 purpose-built rental units (166 market-rate and 42 below-market), approximately 8,200 square feet of ground-level retail/restaurant space, and 119 underground parking stalls. The project encompasses roughly 162,000 square feet on an 18,750 square-foot lot and includes office space and amenities on the second and third levels.

Map: Here are the cheapest neighbourhoods to rent in Metro Vancouver this January

Surrey's Newton neighbourhood continues to offer Metro Vancouver's cheapest rent, with newly listed unfurnished one-bedroom apartments averaging $1,487 in January 2026, while West Vancouver remains Canada's most expensive market at $2,487 for the same unit type. Canada's top five most expensive rental markets are all located in Metro Vancouver, with North Vancouver second at $2,332, Vancouver third at $2,273, Burnaby fourth at $2,164, and Richmond fifth at $2,157. Several other Surrey neighbourhoods offer sub-$2,000 rents including South Surrey ($1,637), Guildford ($1,650), Fleetwood ($1,709), and Surrey City Centre ($1,741), while other affordable options include Abbotsford ($1,593) and White Rock ($1,953). In Vancouver proper, five neighbourhoods averaged under $2,000: Killarney ($1,930), Marpole ($1,950), Renfrew-Collingwood ($1,962), Kerrisdale ($1,963), and Victoria-Sunset Fraserview ($1,977).

Here's how much it costs to rent a one-bedroom apartment in Metro Vancouver in January

Metro Vancouver's average rent for unfurnished one-bedroom apartments decreased by $9 to $2,111 in January 2026, marking the second consecutive monthly decline and a $182 drop from January 2025. Despite the downward trend, Canada's five most expensive rental municipalities remain concentrated in the region, with West Vancouver leading at $2,487, followed by North Vancouver ($2,332), Vancouver ($2,273), Burnaby ($2,164), and Richmond ($2,157). Surrey offers the region's most affordable options with one-bedrooms averaging $1,724, two-bedrooms at $2,179, and three-bedrooms at $2,883, while Langley's rates are slightly higher. For furnished units, Vancouver proper commands the highest rates at $2,633 for one-bedrooms, while Surrey remains most affordable at $1,772, with liv.rent noting that all unfurnished two-bedroom rental prices decreased across neighbourhoods except Langley.

3.2 million sq. ft. of new space planned in Vancouver General Hospital rebuild

Vancouver Coastal Health Authority submitted a comprehensive 30+ year master plan to redevelop the entire 34-acre VGH campus with over 3.2 million square feet of new healthcare space across 10 phases, including demolishing at least 12 buildings such as the iconic Jim Pattison Pavilion. The expansion responds to mounting pressures from population growth and aging demographics, with anticipated bed capacity increasing from 1,063 to 1,468 by 2035 and emergency visits rising from 267 to 388 daily by 2045. New structures will reach up to 24 storeys with parking expanding from 2,200 to 5,000 stalls built underground, with the first 11-storey building potentially completed in the early 2030s and formal public consultation beginning February 2026.

West Vancouver home sees big price drop, still listed for $11M over assessed

A luxury West Vancouver mansion at 835 Farmleigh Road has undergone significant price reductions from its $24.88 million April 2025 listing to the current $18.88 million asking price, though it remains $11.2 million above its $7.66 million BC Assessment valuation. The 13,003 square-foot property features six bedrooms, ten bathrooms, indoor pool with cosmic ceiling, elevator, and smart home system on 0.65 acres, originally purchased for $3.88 million in 2012. Ultra-luxury sales (properties starting at $10 million) slowed significantly in 2025, with no homes in this category selling in Vancouver so far in 2026.

Pattullo Bridge to fully close for a week as opening of replacement crossing nears

Both the current Pattullo Bridge and the new stal̕əw̓asəm (Riverview) Bridge will close completely for approximately one week in early February for round-the-clock roadway connection work, affecting the crossing that currently handles roughly 70,000 vehicles daily. Specific closure dates remain weather-dependent and unconfirmed, with the Ministry of Transportation planning to communicate exact timing once determined. After completion, all four lanes on the new stal̕əw̓asəm Bridge, including a new Royal Avenue on-ramp, are expected to open in late February with pedestrian and cycling pathways, while the old Pattullo Bridge will be systematically removed over approximately two years.

650-bed student housing tower approved for Langara SkyTrain station

Vancouver City Council unanimously approved Global Education Communities Corporation's 25-storey student housing tower at 6428-6438 Cambie Street, immediately north of the Langara-49th Avenue SkyTrain station, with a project budget of approximately $150 million. The 253-foot GEC Langara development will feature 182 secured purpose-built rental homes (143 market rental and 39 below-market) accommodating approximately 650 beds across furnished units, generating an estimated $13 million in annual rental income. The project will pursue CMHC low-cost loans and benefit from GST exemptions and reduced development cost levies, with 2,200 square feet of ground-level retail space and two underground parking levels.

Telus begins construction on rental housing building in Point Grey in Vancouver

Telus, in partnership with Ledcor Property Investments, has commenced construction on a five-storey mixed-use building at 2608 Tolmie Street in West Point Grey Village featuring 55 market rental homes and ground-floor retail/restaurant spaces. The 42,300 square-foot development repurposes a legacy telecommunications exchange facility made available as Telus transitioned from copper to fiber-optic technology, which requires significantly less physical space. Located near UBC and the 99 B-Line, the project is part of Telus Living's broader portfolio aiming to develop over 4,000 homes across BC through 18 active proposals provincewide.

The 2026 outlook hinges on three converging factors: Bank of Canada rate cuts taking effect, resolution of US-Canada trade uncertainty, and how developers adapt to the new market reality. Industry leaders forecast approximately 38,000 transactions in Greater Vancouver and Fraser Valley for 2026—a modest uptick from 2025's 35,236 but still roughly half the 2021 peak of 70,619. This suggests the market may have found a new equilibrium around 40,000 annual transactions rather than reverting to previous highs, fundamentally reshaping expectations for sustainable market activity.

Strategic opportunities have emerged across multiple segments. First-time buyers benefit from unprecedented leverage, with sellers increasingly motivated after extended listing periods averaging 537 days in the downtown office sector. Investors can capitalize on the rent-versus-own disparity, as Vancouver's $2,011 monthly savings for renters creates compelling cash flow advantages for those who can wait for price appreciation. The industrial and commercial sectors face critical decisions, with 23 urban policy experts opposing residential conversions of industrial land while office landlords invest in "magnetic" amenities to attract quality tenants in a flight-to-quality environment.

Risk factors require careful monitoring: Ontario's new home sales collapsed to 5,321 units in 2025—the worst year in 45 years—putting 100,000 jobs at risk and potentially signaling contagion effects. Vancouver faces its first-ever population decline in 2026, which could further suppress demand. Regulatory complexity continues mounting, with all real estate sales now requiring CRA reporting even without taxable gains, enhanced enforcement of foreign buyers tax provisions, and potential new business licensing requirements for multi-unit landlords.

For real estate professionals and investors, the current environment demands disciplined fundamentals over speculation. Warren Buffett's buy-and-hold approach—owning his Omaha home since 1958—offers timeless wisdom as Canadian homeowners typically need five years or more to break even after transaction costs. Those who can weather short-term volatility while capitalizing on buyer-favorable conditions, declining carrying costs through lower rates, and strategic positioning in undersupplied niches like purpose-built rentals and student housing will emerge strongest when market momentum eventually shifts.

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