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Could Foreign Residential Tax Increase Interest in Vancouver’s Commercial Assets?
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(Posted on Oct 3, 2016 at 07:29PM by Michelle Bogle)
With so much news coverage about the recent 15% foreign tax placed on Vancouver residential properties, much speculation has shifted towards commercial assets and the probability of foreign investors cashing in on office, retail and industrial properties – especially as these assets are reaching all-time high numbers.Â
The plausibly of this happening is quite promising. Since the tax was instituted, home sales and price growth have cooled, particularly for luxury real estate.
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Commercial real estate, on the other hand, is hot. Transactions climbed to $7.14 billion (CDN) in the first half of 2016 – almost double the year previous and nearly triple compared to the same period of 2014.
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Another consideration is the supposed housing bubble risk that Vancouver is harbouring. According to a report by Swiss bank UBS, Vancouver's bubble risk is unmatched on the planet, thanks to the boom in foreign investment and loose monetary policy.
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Some might smell disaster; others might smell opportunity. Either way, our commercial advisors are keeping a close eye on B.C.’s provincial government and the real estate sector across the Lower Mainland.
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To learn more, please contact our Vancouver office to speak with a broker.
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