Townhouses under construction in Metro Vancouver.

Government shrugs off foreign real estate fallout

Construction industry disruption expected as new tax threatens deals, says Finance Minister Mike de Jong

Premier Christy Clark and her ministers aren’t concerned about a backlash or downturn in B.C.’s hot urban real estate market from their sudden decision to impose a 15 per cent tax on foreign buyers in Metro Vancouver.

Housing Minister Rich Coleman said Wednesday the development industry was “taken aback and a bit grumpy” after Premier Christy Clark announced Monday that the new tax takes effect Aug. 2.

Clark confirmed Wednesday that there would be no exemptions to the new tax for real estate sales that were signed but not registered before the deadline. That includes pre-sold condos that were purchased before construction, if they are going to buyers who are not citizens or permanent residents of Canada.

Finance Minister Mike de Jong said tax changes are generally done on short notice, and the government expected there would be some cancelled sales as a result. But the purpose of the tax was to discourage foreign sales and replace them with sales to B.C. residents, he said.

“Part of it relates to the fact that properties going on the market are being scooped up so quickly.” de Jong said. “This disruption, this change is taking place in a market where there is incredibly strong domestic demand.”

The government intends to put the revenue from the foreign buyer tax into a housing affordability fund, but Coleman said there will be no return to government directly building social housing projects.

New initiatives will be announced in September, with incentives for builders to create more rental housing. The province already provides rent subsidies to 20,000 families to keep them in market housing, and that approach has better results than concentrating low-income people in government housing, Coleman said.

 

Just Posted

Police use lacrosse sticks to rescue ducklings from Delta storm drain

Delta police rescued five of six ducklings found in a Highway 17 storm drain on June 21

PHOTOS: Racers, fans and actor Neal McDonough attend Tsawwassen Soap Box Derby

The fourth annual rotary club derby took place along 6th Avenue on June 22

Surrey RCMP raises Pride flag Monday amid din of protesters

There were about 30 protesters on either side, and 20 Mounties doing crowd control

City of White Rock, SFN reaffirm close ties

National Indigenous Peoples Day celebrated on June 21

Astronaut David Saint-Jacques returns to Earth, sets Canadian space record

Native of Saint-Lambert, Que., set a record for longest single spaceflight by a Canadian at 204 days

The world’s Indigenous speakers gather in B.C.’s capital to revitalize languages

Organizers estimate about 1,000 delegates from 20 countries will be at the conference

Join talks on international treaty: B.C. First Nations mark ‘historic moment’

Representatives of the Ktunaxa, Syilx/Okanagan and Secwepemc Nations participated

Companies need clearer rules on workplace relationships, study suggests

One-third of Canadians have been in love at work, and half say no policy on the matter exists

Grey-haired bank robber hit with dye pack in Langley heist

Police are looking for an older man who may be stained with dye

‘Text neck’ causing bone spurs to grow from millennials’ skulls, researchers say

Technology use from early childhood causing abnormal bone growths in 41 per cent of young adults

B.C. teen killed by fallen tree on field trip remembered as hero

13-year-old Tai Caverhill was the first to spot the tree falling and warned his friends

Should B.C. get rid of Daylight Saving Time?

The province wants to know, as state governments down south make the move

Air Canada reviewing how crew left sleeping passenger on parked plane

In a Facebook post, the woman said she woke up ‘all alone’ on a ‘cold dark’ aircraft

Most Read