By ThinkPol Staff

Home prices in areas subject to British Columbia’s foreign buyer tax stabilized while the real estate market frenzy continued unabated in other parts of the province, according to a preview of the 2018 property assessment.

Typical detached single family homes are very stable in the Metro Vancouver areas of Richmond, Vancouver, the North Shore and Burnaby, showing nominal changes in the zero to five per cent range, BC Assessment announced on Wednesday^[1]https://info.bcassessment.ca/news/Pages/2018_Property_Assessments_Preview.aspx.

Foreign buyers in those areas have to dish out an additional 15% property transfer tax introduced by the former BC Liberal government in July last year^[2]https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/understand/additional-property-transfer-tax.

According to BC Assessment, other areas of the province can expect greater increases of 10-20% for detached single family homes, particularly across the Fraser Valley, Vancouver Island and the Okanagan.

The foreign buyer tax does not apply in those areas.

“The preliminary market analysis for 2018 property assessments is showing strong market conditions across most areas and property types in the province, with a few exceptions,” Assessor Tina Ireland said. “Assessments for detached single family homes in central parts of Metro Vancouver, for example, will be relatively stable, while other parts of the province will see increases when compared to last year’s assessments.”

The residential condo market is “quite robust” with typical changes expected to be in the 10-30% range across Metro Vancouver, Fraser Valley, Vancouver Island and the Okanagan, with the higher end being notable in Metro Vancouver and Fraser Valley, BC Assessment found.

The rise in the strata market has been blamed on pre-sale flipping by both local and foreign speculators^[3]http://business.financialpost.com/real-estate/rpt-vancouver-condo-rush-sparks-local-and-foreign-flipping-frenzy.

Foreign buyers are exempt from the 15% additional property transfer tax if they’re able to assign the contract to a Canadian citizen or permanent resident before the property is registered^[4]https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/understand/pre-sold-strata-unit.

The 2018 assessment also found that typical commercial and industrial properties can expect strong increases across most of the province in the 10-20% range, with the markets around Vancouver upwards of 35% in some areas.

Commercial and industrial properties are exempt from the foreign buyer tax.

2018 property assessment values will reflect what was happening around BC Assessment’s uniform valuation date of July 1, 2017.

The independent crown corporations appraisers analyze current sales in the local area, as well as the property’s size, age, quality, condition, view and location.

The organization uses a single common date of July 1 to ensure that BC a property’s assessed value is “fair, equitable and uniform” compared to the other properties in the community and across the province.

[Photo Credit: BC Assessment]