With files from Charmaine de Silva.
The latest numbers are in.
And they show Metro Vancouver’s red hot housing market is certainly feeling the impact of foreign buyers.
It’s been less than three weeks since the provincial government released the first set of housing data on foreign ownership in British Columbia.
That data wa comprised of a three week period between June 10th and 29th.
Now the latest data dump from Finance Minister de Jong looks at the five week period between June 10th and July 14th.
And it shows about 10 per cent of the value of all real estate deals in the region involved foreign buyers.
That’s about $885 million of a total $8.8 billion in real estate transactions.
Richmond and Burnaby top the list for foreign buyer transactions
When you take a look at B.C. as a whole, 6.6 per cent of all transactions involved foreign buyers.
And different municipalities appear to be more attractive for foreign buyers.
In Richmond, 18.8% of all real estate transactions were from foreign buyers, while in Burnaby foreign buyers accounted for 17.7% all transactions.
Compare that to the City of Vancouver, where foreign buyers took part in nearly 11% t of the deals.
Data highlights (as per provincial report) for the period June 10th to July 14th:
- 19,383 residential property transactions in British Columbia
- 1,276 transactions involved foreign nationals
- This shows a rate of 6.6% of transactions involved foreign nationals
- The total investment by foreign nationals was $1,024,031,118
representing 7.9% of the total investment
In Metro Vancouver
- Metro Vancouver accounted for 49.7% of the real estate transactions in
B.C., and 73.3% of transactions by foreign buyers
- By value, Metro Vancouver accounted for a total $8.8 billion worth of
transactions; foreign purchasers accounted for $885,393,373.
- The average investment by Canadian citizen or permanent resident buyers
in Metro Vancouver was $911,425, while the average investment by foreign
buyers was $946,945.
No exemption on foreign buyers tax for deals in progress
As of August 2nd, a new 15% property transfer tax comes into effect for foreign nationals who purchase residential real estate in Metro Vancouver.
That initiative was announced yesterday, and not everyone was happy.
The Greater Vancouver Real Estate Board slammed the tax, saying there was no warning before it was announced, and asking for an exemption for transactions currently in progress that will close after August 2nd.
No deal, says Minister de Jong.
“Well, there’s always a question around the transition. I had someone ask me, why didn’t we warn people? Well, it’s tax policy.”
Those caught skirting the new 15% tax will face penalties
Minister de Jong is also responding to questions about the province’s new foreign buyer tax announced yesterday.
While he admits he’s heard concerns some will try to skirt the rules, he says that’s the case with any tax.
“If someone is structuring a transaction in a particular way for no other reason that no avoid payment of this tax- if a foreign national is doing so through whatever mechanism they might think of – we can, through the audit process establish that that was the case, the tax is applicable and a penalty to boot.”