B.C.’s Finance Minister Mike de Jong says the Capital Region will be closely monitored after August second
New figures from the provincial government show that foreign buyers purchased more than one billion dollars in real estate in B.C. in the space of five weeks.
That amounts to almost eight percent of all residential properties bought between June 10th and July 14th.
While Metro Vancouver is the focus of international investors, the Capital Regional District has a small but steady number of properties sold to overseas buyers.
Mary Griffin reports.
This waterfront property with sweeping ocean views is listed for 1.5 million dollars.
And realtor Tony Joe expects it to sell quickly.
“There is a good chance that we’ll find an international buyer here.
Typically of course, they are looking for newer homes.
This is ripe for redevelopment.
The likelihood is that someone is going to take this down, and build something new, perhaps attempt to sub-divide.”
Foreign investors account for three percent of the homes purchased in Greater Victoria between June 10th and July 14th.
The government is keeping a close watch on real estate transactions here.
If there is a increase in the number of foreign buyers after August second, Finance Minister Mike de Jong says those buyers may be subject to the 15 percent property transfer tax.
“This will bear watching to see if it changes post August second.
And you’ll be aware that we have the option to expand the application of the additional Property Transfer Tax.”
Foreign money accouned for more one billion dollars of property purchased in B.C. over five weeks.
Most of those buyers are in Metro Vancouver, but they’re also buying in Richmond and Burnaby.
Although this property may sell to foreign buyers, realtors don’t believe there is going to an influx anytime soon.
“Vancouver remains a trophy city.
It’s where international people want to be.
When you think about it, Victoria, as beautiful as it is, is still a bit of a satellite community to Vancouver.”
There may be a slight bump in demand after August second, but despite concerns expressed by the government and local mayors, many realtors believe the market will not reach Vancouver’s stratospheric heights.