Professors of economics at Simon Fraser University (SFU) in British Columbia (BC) have released new research calling for a 1.5% property surcharge targeting owners of vacant properties in the BC area, to slow foreign investment and encourage a more active contribution to the local economy. The study is part of an ongoing effort by SFU economists to understand how housing markets respond to changes in government policy that affect land use and taxation policies. According to the Greater Vancouver Real Estate Board, the benchmark price of a detached residence in Vancouver was estimated at $1.2m in November 2015, up 22.6% from the previous year, with 70% of this housing stock being sold to Mainland China buyers. The 1.5% vacant property surcharge could recoup $90m p.a. for Vancouver alone, according to the SFU study.
Professors of economics at Simon Fraser University (SFU) in British Columbia (BC) have released new research calling for a 1.5% property surcharge targeting owners of vacant properties in the BC area, to slow foreign investment and encourage a more active contribution to the local economy. The study contends that the Vancouver housing market is currently being used as a way for foreign investors to evade taxes by switching properties and storing wealth tax-free, pushing up house prices, leading to potential labour shortages and stifling business innovation. According to the Greater Vancouver Real Estate Board, the benchmark price of a detached residence in Vancouver was estimated at $1.2m in November 2015, up 22.6% from the previous year, with 70% of this housing stock being sold to Mainland China buyers. The 1.5% vacant property surcharge could recoup $90m p.a. for Vancouver alone, according to the SFU study.