Vancouver Developers PANIC: $93M Luxury Condo Foreclosure in Kerrisdale

The Vancouver real estate market has been hit with yet another high-profile collapse — and this time, it’s a completed $93 million luxury condo project that has gone into foreclosure. The building in question is Chloe, a boutique four-storey development in Kerrisdale, which once promised buyers a new level of high-end living. Today, it stands as a warning sign for the entire presale condo industry.

The Rise and Fall of Chloe

Chloe entered the market at the peak of Vancouver’s luxury boom, selling presale units for more than $2,100 per square foot. Many units were priced well above $2 million.

But as interest rates climbed and Vancouver’s foreign buyer ban took effect, demand dried up. Buyers began backing out of their contracts, leaving the developer unable to pay back its construction financing.

What makes this case unusual is that some buyers allegedly made payments directly to the developer instead of through the mandatory lawyer trust accounts — a potential violation that could complicate refunds and lawsuits.

The $93M Foreclosure

With unsold units piling up and cash flow collapsing, Chloe’s lender initiated foreclosure proceedings. The remaining condos are now listed for as low as $1,500 per square foot, a dramatic price drop from the presale peak.

The foreclosure process will likely result in deep discounts for the remaining units — but it also leaves early buyers who paid full price in a tough spot, watching their property values sink.

Not an Isolated Case

Chloe’s downfall comes on the heels of several other troubled Vancouver developments, including the The CURV, once advertised as the tallest Passive House tower in the world, which has also faced severe financial troubles.

Across Greater Vancouver, foreclosures and bankruptcies are beginning to spread, particularly among developers who launched ambitious presale projects between 2020 and 2022.

Why Are Developers Panicking?

There are three key factors driving the panic in Vancouver’s new construction market:

1. Interest Rate Shock – Higher mortgage rates have crushed buyer affordability.
2. Foreign Buyer Ban – Wealthy overseas investors who once drove luxury demand have been shut out since 2023.
3. Construction Cost Inflation – Pandemic-era price spikes for materials and labour have eaten into profit margins.

The Push to Lift the Foreign Buyer Ban

Facing mounting financial pressure, some developers and industry lobbyists are now calling on the BC and federal governments to lift the foreign buyer ban ahead of schedule. They argue that without overseas capital, luxury projects will continue to fail — resulting in job losses and stalled construction.

Critics counter that bringing foreign money back would only reignite the affordability crisis for local buyers.

What This Means for the Vancouver Real Estate Market

The Chloe foreclosure is more than just a single failed project — it’s a signal that parts of the Vancouver market, particularly the luxury presale segment, are under severe stress.

If interest rates remain high and the foreign buyer ban stays in place, more developers could face the same fate, pushing additional units into foreclosure and potentially softening prices in other segments of the market.

For buyers: There may be opportunities to purchase luxury units at a steep discount — but tread carefully, as foreclosures come with unique risks.

For investors: The presale market is no longer the guaranteed win it once seemed. Due diligence and market timing are critical.