New B.C. foreign buyers tax pushes down Greater Vancouver property prices

Prices for detached houses and townhomes in Greater Vancouver slumped in October but remained steady in the Fraser Valley.

Government actions such as B.C.’s new foreign buyers tax put more downward pressure on property prices in Greater Vancouver.

The Real Estate Board of Greater Vancouver showed a 1.4 per cent decrease in the benchmark price of detached homes compared to October of last year, down to $1,545,800 from $1,567,500. Townhome prices in the GVRD also showed a slump – down to $669,200 from $676,300.

(story continues below photo)

Cheaper properties didn’t help shift houses either. New listings for detached, attached and apartment properties in Metro Vancouver totalled just 3,981 in October— a 17 per cent decrease compared to September when 4,799 properties were listed.

“Changing market conditions compounded by a series of government interventions this year have put home buyers and sellers in a holding pattern,” said REBGV president Dan Morrison.

The provincial government introduced a 15 per cent tax on property purchased by foreign buyers in Metro Vancouver on Aug. 2, in a bid to discourage investment by non-resident foreign nationals or corporations they control.

However, real estate prices are still up compared to October last year. Detached homes are up 28.9 per cent in the REBGV area, which covers much of Metro Vancouver but excludes Surrey, White Rock, Langley and North Delta. Townhomes are up 25.7 per cent and apartments are up 20.5 per cent.

The same slump wasn’t reported by the Fraser Valley Real Estate Board, which covers areas not subject to the foreign buyers tax such as Abbotsford and Mission, as well as parts of eastern Metro Vancouver where it does apply, such as Surrey.

Detached homes showed a 0.7 per cent decrease in price from $878,100 to $872,100 but townhomes showed a 0.5 per cent increase (from $419,300 to $421,300) and apartment prices rose by 1.7 per cent (from $250,00 to $254,300) as well.

Compared to last year, FVREB benchmark prices are up 34.3 per cent for detached homes and townhomes while it was up 25.2 per cent for apartments.

Sale numbers in the Fraser Valley peaked slightly above the 10 year historical average for October.

“Sales activity was healthy in October, especially in the townhome and apartment categories. With prices beginning to level-off, it appears that buyers are becoming more motivated to explore the Valley’s available inventory,” said Fraser Valley Real Estate Board president Charles Wiebe.

 

@katslepian

katya.slepian@bpdigital.ca

Like us on Facebook and follow us on Twitter.

 

Just Posted

Allegations of ‘undue dealings’ raise ire at air-quality hearing

Evidence continues in proceedings contesting emissions permit for South Surrey galvanizing plant

Sisters, sexual abuse and one Surrey family’s bond in new movie ‘Because We Are Girls’

Cloverdale’s Jeeti Pooni led effort to create the documentary, set to debut at festivals

Surrey Historical Society holds ‘memory social’ Sunday

Gathering will be a chance to offer, share stories

Drowning victim fondly remembered

Immigration consultant Jay Atienza Razon, who worked out of Newton, drowned in a kayaking accident March 29

Khan Michael Bourne, of Sechelt, shot dead in Surrey

Police say Bourne was found laying on the ground, with gunshot wounds

VIDEO: Driver in bizarre hit-and-run at B.C. car dealership turns herself in

Police believe alcohol was a factor in incident causing estimated $15,000 in damages

Two units damaged in Abbotsford apartment fire

Quick action from fire rescue service halted blaze from spreading beyond two damaged units

5 to start your day

Many in hospital after Aldergrove deck collapse, video showing pig abuse allegedly at Abbotsford farm and more

Two in critical condition, several still in hospital after Langley deck collapse

Close relative Satwant Garcha makes daily trips to visit those injured at the wedding

Allegedly intoxicated man arrested after 3 paramedics attacked at Kamloops hospital

Paramedics had transported the man to Royal Inlands Hospital for medical treatment

Canadian privacy watchdogs find major shortcomings in Facebook probe

The probe followed reports that Facebook had let an outside organization use an app to access users’ personal info

Busy day for passengers on BC Ferries

First two sailings from Tsawwassen to Swartz Bay full Thursday morning

B.C., Ottawa talk 50/50 split on abandoned bus-route service

B.C. has paid $2 million on a bus service for the northern part of the province

Most Read