The BC Real Estate Discussion Thread

[Harvey Spector]

July 2017

BC's New Government and BCREA

The new cabinet doesn't address all of BCREA's requests, but there are some definite positives.

After the BC NDP and Green Parties announced their agreement, BCREA reached out to both parties with key recommendations for cabinet organization.

 

To tackle housing affordability, we recommended a dedicated Ministry of Housing. Instead, the new government created the Ministry of Municipal Affairs and Housing. It's not dedicated to housing, but the portfolio does have more prominence than previously. The Association looks forward to working with the Honourable Selina Robinson to improve market housing affordability.

 

BCREA also recommended the new government retain a Ministry, or Ministry of State, for Emergency Preparedness. The government has retained a portfolio for emergency management, naming Jennifer Rice as Parliamentary Secretary, within the Ministry of Public Safety and Solicitor General, led by the Honourable Mike Farnworth. BCREA will continue to advocate for our emergency management and flood protection recommendations, including the advancement of floodplain mapping across BC.

 

Finance is another important ministry for BCREA, because it controls taxation and the legislation under which BC REALTORS® are licensed. The Honourable Carole James is the new Minister of Finance and Deputy Premier, and she brings considerable experience and knowledge to the role.

 

We see many exciting opportunities to advance our positions with this new cabinet, all elected MLAs and government staff.

 

http://web.bcrea.bc.ca/Connections/articles/2017-07_article1.html

[Harvey Spector]

New Canadian banking rules called 'game changer' for real estate tax evasion

SAM COOPER
More from Sam Cooper

Published on: July 27, 2017 | Last Updated: July 27, 2017 6:20 PM PDT

 

New Canadian banking rules that took effect July 1 are a “game changer” that could help governments in Victoria and Ottawa fight real estate tax scams exploited by foreign buyers, says a prominent B.C. immigration lawyer.

 

As of July 1, Canadian banks must confirm detailed information on non-resident clients — such as name, address, date of birth and taxpayer identification numbers — in order to report to the Canada Revenue Agency on all financial accounts held by non-residents of Canada.

 

The new, so-called “Common Reporting Standard” will allow dozens of countries including Canada and China to share information about bank accounts held by, or for the benefit of, non-residents, in a system designed to fight global tax evasion and improve voluntary tax compliance, the CRA says.

 

A number of experts, including immigration lawyer Richard Kurland, say that Canada loses significant tax revenue because B.C.’s real estate transaction system does not properly monitor whether property sellers are being honest when they say they are, or are not, residents of Canada as defined under the Income Tax Act.

 

It is believed many non-residents who don’t principally live in Canada, but claim they do, are evading paying tax on 25 per cent of their capital gains on home sales, Kurland says. These tax dodgers tend to be speculative Metro Vancouver investors who own or flip multiple expensive properties, according to Kurland. A common scam is claiming to live in a home that is actually vacant, he said, and claiming principle residency tax exemptions. It’s also believed that some real estate professionals help clients fake residency claims, or turn a blind eye to tax dodging tactics, Kurland and other legal experts told Postmedia.

 

But now the CRA will automatically have the data needed to confirm whether non-resident property sellers are being honest, Kurland says, rather than completing “whack-a-mole” real estate audits.

The CRA also will be able to share this client banking information with other countries that join the common reporting system. These international reporting changes were made partly in response to disclosures in recent years about global tax haven and offshore banking strategies of wealthy investors and politically connected elites.

 

Kurland says that if the CRA were to proactively work with B.C.’s provincial government in sharing real estate data and using computer programs to search for red flags, tax compliance would rapidly improve and speculation would fade in Metro Vancouver’s overheated market.

 

“Lifestyle audits are hard to do when the person (selling a home) and the cash are gone, and there’s nothing to seize,” Kurland said. “But using CRA algorithms and artificial intelligence means this is fixable, if you have the data. We’re looking at a game changer.”

 

An even better reform, Kurland says, would be if the CRA’s new data pool could be automatically matched with a modernized B.C. title transfer system that would require a seller to register at the time of a sale, whether they are a Canadian resident, or non-resident, under the Income Tax Act.

 

Already sellers make these declarations on standard real estate forms by checking a box. But these forms are rarely confirmed, unless a property sale is investigated by the CRA, according to Kurland.

 

“The honour system just isn’t working,” he said.

 

As an added measure, real estate professionals would need to verify client residency with proofs such as income tax forms, Kurland said. They would then be liable for clients’ reports. This would deter some of the bad apples who are believed to be helping clients cheat Canadian taxpayers.

 

“The CRA is supportive of any provincial regulation that would bring increased oversight to real estate transactions completed in the province,” spokeswoman Shannon Ker said, in response to questions about reforming B.C.’s title transfer system.

 

The NDP’s former housing critic, MLA David Eby, who is now B.C.’s attorney-general, campaigned on ideas to combat suspected tax evasion by foreign speculators in B.C. real estate.

 

The new NDP government has not yet responded to Postmedia’s questions on whether the party supports the reporting reforms suggested by Kurland.

 

http://vancouversun.com/news/local-news/new-canadian-banking-rules-called-game-changer-for-real-estate-tax-evasion

[Warhippy]

More than Agriculture, Forestry, Hunting and Fishing combined.....wow.  When the US housing bubble peaked those same fees only accounted for 1.5% of the US GDP....in Canada almost 2%

 

http://www.cbc.ca/news/business/real-estate-fees-home-sales-1.4226630

 

Canada's addiction to real estate goes far beyond our obsession with talking about it. Our economy actually relies more on the fees associated with buying and selling houses than it does on agriculture, fishing, forestry and hunting combined.

Real estate commissions, land transfer taxes, legal costs and fees for inspecting and surveying homes make up almost two per cent of Canada's economy.

 

"This is a stunning 1.9 per cent of GDP," said Macquarie analyst David Doyle. "It's really concerning, it's really unhealthy." 

By comparison, agriculture, forestry, fishing and hunting account for 1.6 per cent of GDP, Statistics Canada reports.

Doyle points out that the U.S. was relying big time on home ownership transfer fees in 2005, when its real estate market peaked. But even then, those fees made up only about 1.5 per cent of U.S. GDP. Now, years after the U.S. housing market crash, transfer fees make up less than one per cent.

In Canada, upcoming data will likely show those fees have already started to fall, as the number of home sales across the country fell in June by the most in seven years. 

 

Doyle says Canada's increased reliance on real estate fees can be blamed on years of ultra-low interest rates, worsened during the oil price slump when the Bank of Canada cut rates even further.

"I think they felt that the lesser of two evils in that situation was to cut interest rates," Doyle said.

But that fix has helped put Canada in another tricky situation, where the economy relies to an unusual extent on home transactions. That could have particularly negative consequences as the central bank begins to raise rates again.

"The drag on the economy that's going to flow from [higher rates], I think, will prove to be much more severe than it's been in the past," Doyle said.

Renovation spending at risk

When people buy and sell fewer homes, there are other spillover effects on the economy. Home renovations, which make up a whopping 2.6 per cent of Canada's economy, could also contract.

"If people are not buying homes, they're not doing the renovations," says Capital Economics economist David Madani.

Madani says if the recent drop in home sales leads to a drop in prices — as it typically does — current homeowners may also pull back on plans to renovate.

'I think you'll see people cool off'

"When prices are going up, people will invest in their new kitchen and bathrooms, because a home is an investment, right? The value is going up, right? Once it starts going down a bit, I think you'll see people cool off on a lot of that stuff," Madani said.

Then other businesses such as furniture and home improvement retailers could also suffer.

Doyle warns that eventually the entire economy could feel a drag from falling home sales and falling real estate fees.

"The economy is just that much more reliant on housing and in particular on these ownership transfer costs," Doyle said. "It's not something that, as an economy, you would look at as a position we want to be in."

[Harvey Spector]

Vancouver quadruples purpose-built rental target

Wednesday, July 26, 2017

 

Vancouver is boosting the number of affordable homes it plans to build over the next ten years to 72,000, exceeding its previous ten-year housing targets by 85 per cent.

Purpose-built rental housing will quadruple – up to 20,000 additional homes over the next ten years, with plans for new 100 per cent rental buildings with a minimum of 20 per cent of units priced below-market for renters earning $30,000 to $80,000 a year.

 

Council will vote on the final approval of new housing targets in November, but confirms about 48,000 of these new homes will be rentals. About 29,000 will be for families and more than 12,000 homes will provide social and supportive housing for lower income residents.

 

“The City has a plan to deliver 72,000 homes – the biggest affordable housing boom in Vancouver history,” says Mayor Gregor Robertson. “These 72,000 homes are for people who live and work in Vancouver. We’re going above and beyond what’s ever been done in Vancouver to enable new affordable housing for local residents matched to realistic, local incomes – housing that people want: rentals, laneway homes, coach houses, duplexes, and townhomes in neighbourhoods across the city.”

 

This is just one aspect of the city’s action plan to ensure stability for renters. Last year, the city proposed restrictions on short-term rental regulations that could bring 1,000 long-term rental units back to market in 2018.

 

Council will also consider changes to Vancouver’s City-wide Development Cost Levy program. Contributions could generate one billion dollars in revenue, with half going to new affordable housing and childcare projects.

 

https://www.reminetwork.com/articles/vancouver-quadruples-target-purpose-built-rental-homes/

[Harvey Spector]

Foreign buyers' tax and other measures under review, B.C. housing minister says

Aleksandra Sagan, The Canadian Press  
Published Monday, July 31, 2017 3:48PM EDT 
Last Updated Tuesday, August 1, 2017 11:46AM EDT

FILE -- NDP Leader John Horgan, left, takes a selfie with local candidate Selina Robinson during a campaign stop in Coquitlam, B.C., on Sunday May 7, 2017.(THE CANADIAN PRESS/Darryl Dyck)

 

VANCOUVER -- The British Columbia government is reviewing the foreign buyers' tax in the Vancouver area and the interest-free loan program to first-time homebuyers to determine whether they have helped improve affordability, the province's new housing minister says.

 

In an interview Monday, Selina Robinson said she and provincial Finance Minister Carole James will go over real estate transaction data in an effort to decide whether such measures should be kept, revised or scrapped altogether.

 

"I don't know that we have any plans to eliminate it," Robinson said of the 15 per cent foreign buyers' levy, nearly a year after the previous Liberal government introduced it for Metro Vancouver.

 

"There's certainly enough data that would help us to understand its value, and so, we have to look at that data."

 

Robinson said she understands the tax had some impact early on, but that is starting to slip away.

 

From June 10 until Aug. 1, 2016 -- one day before the tax took effect -- 13.2 per cent of all property transfer transactions in Metro Vancouver involved foreign buyers, according to data from the B.C. Finance Ministry. From Aug. 2, 2016, until the end of last year, that figure fell to 2.6 per cent.

 

In the months after the tax, there were signs of cooling in Vancouver's housing market, with the number of transactions falling. However, there have been signs that the market may be rebounding, as prices continue to creep up.

 

The Multiple Listing Service composite benchmark price for all properties in Metro Vancouver was $998,700 in June, an increase of 7.9 per cent from the same month last year, according to the Greater Vancouver Real Estate Board.

 

Tsur Somerville, the director of the University of British Columbia Centre for Urban Economics and Real Estate, said the tax may have dampened foreign interest in a city where housing prices are among the most expensive in North America.

 

But another possibility is that some foreign buyers are not self-identifying as such or have shifted to purchasing properties, such as presale condominiums, that aren't covered by the tax, he said.

 

The foreign buyers' tax was a contentious move that angered some groups and prompted a class-action lawsuit that is now awaiting a certification hearing in early November.

 

The claim's lead plaintiff is Jing Li, a Chinese citizen residing in Burnaby, B.C. Li found the $559,000 property she purchased in July would suddenly be subject to an additional $83,850 in taxes because the deal was to close after Aug. 2.

 

The proposed lawsuit alleges the tax is unconstitutional. But in the province's statement of defence filed in May, the government denies the tax is unconstitutional or violates the Canadian Charter of Rights and Freedom. The allegations have not been tested in court.

Robinson was unable to comment on whether her party would fight the action in court.

 

Before they won the May election, the NDP promised to bring in an annual two per cent tax on vacant properties, but Robinson said that too is under review.

 

Andrey Pavlov, a professor who specializes in real estate finance at Simon Fraser University in Burnaby, B.C., said he hopes the government implements policies that would ease development restrictions to increase housing supply.

"Unless we can increase supply, we can tax people at any rate we want," Pavlov said.

 

"It's not going to make any difference because we just don't have enough units."

 

http://www.ctvnews.ca/mobile/business/foreign-buyers-tax-and-other-measures-under-review-b-c-housing-minister-says-1.3526779#_gus&_gucid=&_gup=Facebook&_gsc=mboc6hi

[Harvey Spector]

 

August 2, 2017

Metro Vancouver sees fewer home sales and more listings in July

Home buyer activity returned to more typical summer levels in Metro Vancouver last month.   The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in the region totalled 2,960 in July 2017, an 8.2 per cent decrease from the 3,226 sales recorded in July 2016, and a decrease of 24 per cent compared to June 2017 when 3,893 homes sold. Last month’s sales were 0.7 per cent above the 10-year July sales average.   “Housing demand is inconsistent across the region right now. Pockets of the market are still receiving multiple offers and others are not. It depends on price, property type, and location,” Jill Oudil, REBGV president said. “For example, it’s taking twice as long, on average, for a detached home to sell compared to both townhomes and condominiums.”   There were 5,256 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in July 2017. This represents a 0.3 per cent increase compared to the 5,241 homes listed in July 2016 and an 8.1 per cent decrease compared to June 2017 when 5,721 homes were listed.   The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 9,194, a 10.1 per cent increase compared to July 2016 (8,351) and an eight per cent increase compared to June 2017 (8,515).   “Because home sale activity decreased to more historically normal levels in July, the selection of homes for sale in the region was able to edge above 9,000 for the first time this year,” Oudil, said.   For all property types, the sales-to-active listings ratio for July 2017 is 32.2 per cent. By property type, the ratio is 16.9 per cent for detached homes, 44.9 per cent for townhomes, and 62 per cent for condominiums.   Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 per cent mark for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.   The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,019,400. This represents an 8.7 per cent increase over July 2016 and a 2.1 per cent increase compared to June 2017.   Sales of detached properties in July 2017 reached 949, a decrease of 11.9 per cent from the 1,077 detached sales recorded in July 2016. The benchmark price for detached properties is $1,612,400. This represents a 1.9 per cent increase from July 2016 and a 1.5 per cent increase compared to June 2017.   Sales of apartment properties reached 1,468 in July 2017, a decrease of 8.4 per cent compared to the 1,602 sales in July 2016. The benchmark price of an apartment property is $616,600. This represents an 18.5 per cent increase from July 2016 and a 2.7 per cent increase compared to June 2017.   Attached property sales in July 2017 totalled 543, a decrease of 0.7 per cent compared to the 547 sales in July 2016. The benchmark price of an attached unit is $763,700. This represents an 11.9 per cent increase from July 2016 and a 2.4 per cent increase compared to June 2017.

Edited August 2, 2017 by Harvey Spector

[apollo]

22 hours ago, Harvey Spector said:

 

“The City has a plan to deliver 72,000 homes – the biggest affordable housing boom in Vancouver history,” says Mayor Gregor Robertson. “These 72,000 homes are for people who live and work in Vancouver. We’re going above and beyond what’s ever been done in Vancouver to enable new affordable housing for local residents matched to realistic, local incomes – housing that people want: rentals, laneway homes, coach houses, duplexes, and townhomes in neighbourhoods across the city.”

 

Music to my ears... assuming these will be similar to the units that went for sale at Sequel 138 on East Hastings? 

 

Or nevermind... I guess this will be strictly rentals. Sequel had units for purchase. 

Edited August 2, 2017 by apollo

[taxi]

22 hours ago, Harvey Spector said:

Vancouver quadruples purpose-built rental target

Wednesday, July 26, 2017

 

Vancouver is boosting the number of affordable homes it plans to build over the next ten years to 72,000, exceeding its previous ten-year housing targets by 85 per cent.

Purpose-built rental housing will quadruple – up to 20,000 additional homes over the next ten years, with plans for new 100 per cent rental buildings with a minimum of 20 per cent of units priced below-market for renters earning $30,000 to $80,000 a year.

 

Council will vote on the final approval of new housing targets in November, but confirms about 48,000 of these new homes will be rentals. About 29,000 will be for families and more than 12,000 homes will provide social and supportive housing for lower income residents.

 

“The City has a plan to deliver 72,000 homes – the biggest affordable housing boom in Vancouver history,” says Mayor Gregor Robertson. “These 72,000 homes are for people who live and work in Vancouver. We’re going above and beyond what’s ever been done in Vancouver to enable new affordable housing for local residents matched to realistic, local incomes – housing that people want: rentals, laneway homes, coach houses, duplexes, and townhomes in neighbourhoods across the city.”

 

This is just one aspect of the city’s action plan to ensure stability for renters. Last year, the city proposed restrictions on short-term rental regulations that could bring 1,000 long-term rental units back to market in 2018.

 

Council will also consider changes to Vancouver’s City-wide Development Cost Levy program. Contributions could generate one billion dollars in revenue, with half going to new affordable housing and childcare projects.

 

https://www.reminetwork.com/articles/vancouver-quadruples-target-purpose-built-rental-homes/

I'll believe this when I see it.

[Harvey Spector]

Looks like North Burnaby will become an extension of downtown Vancouver and a shopping district for the super rich...

 

STYLE WATCH

A new "luxury row"? High-end brands could soon join the Amazing Brentwood's retail lineup

Burnaby may soon be getting its own luxury zone, if a new partnership between mega-development the Amazing Brentwood and private equity firm L Catterton Real Estate—which is backed by LVMH Moët Hennessy Louis Vuitton, the world’s largest high-end retail conglomerate—is any indication.

 

Shape Properties, the real-estate management team behind the Amazing Brentwood, announced LCRE’s investment in the project today (August 1). LCRE’s interest in the two-billion-dollar-plus site signals that the corporation believes that the Amazing Brentwood will attract a large assortment of the world’s top labels, explains Shape’s executive vice president, Darren Kwiatkowski. 

 

“It’s a strong vote of confidence in the project and, I would say, in the region,” he tells the Straight by phone, adding that this is the first time that LCRE has supported a Canadian endeavor.

 

With funding from LVMH, which counts brands such as Celine, Louis Vuitton, and Fendi in its portfolio, LCRE has played a part in the launch of luxury developments like the Miami Design District and Tokyo’s ritzy Ginza Six. Both of these retail centres boast LVMH subsidiaries such as Bulgari, Givenchy, and Dior, which may offer consumers a hint of things to come in Burnaby.

 

“They have a seat at the table, for sure,” Kwiatkowski says of LCRE’s role in the outreach and decision-making process that will determine what labels call the Amazing Brentwood home.

SHAPE PROPERTIES

Kwiatkowski won’t share what brands his team has already contacted, or hopes to lease retail space to, though he does mention that, with two years until the project’s first-phase completion, “we’ve reached out to a lot of them.”

 

In addition to luxury names, Kwiatkowski would like to see a selection of homegrown and independently owned stores among the Amazing Brentwood’s 250-plus expected shops. He says that the development’s status as a mixed-used urban centre, rather than a traditional mall, makes it well suited for a blend of luxury and local retailers, like in a city’s downtown core.

 

“We love that combination of cool local boutiques with international brands,” Kwiatkowski notes. “We want to have the full spectrum.”

 

At the moment, the majority of Vancouver's high-end labels are concentrated on the stretch of Alberni between Burrard and Thurlow streets and the surrounding area, which has subsequently been dubbed "Luxury Row". The Amazing Brentwood's introduction of such brands could potentially relieve the crunch for retail space in this zone, which, in recent years, has been taken up by Rolex, Saint Laurent, Moncler, and others.

 

Spanning over 28 acres, the Amazing Brentwood will include 2.5 million square feet of retail and restaurant space upon completion. This is in addition to the 6,000 homes and office and commercial spaces that will be produced over 11 hi-rise towers.

 

Earlier this year, it was announced that Cineplex will open B.C.’s first Rec Room, a massive food-and-entertainment district, and an almost 21,000-square-foot VIP Cinema at the Amazing Brentwood. More tenants—retail and otherwise—will be released as the project approaches its spring 2019 first-phase opening date.

 

http://www.straight.com/life/943511/new-luxury-row-high-end-brands-could-soon-be-joining-amazing-brentwoods-retail-lineup

[Harvey Spector]

Buyer who walked away from real estate deal ordered to pay $360K

Would-be buyer ordered to pay the difference after house ultimately sells for 28% less

By Lisa Johnson, CBC News Posted: Aug 03, 2017 5:00 AM PT Last Updated: Aug 03, 2017 4:33 PM PT

 

The B.C. Supreme Court has ordered a buyer who walked away from a Surrey, B.C., real estate deal last summer to pay the sellers more than $360,000, or six times his original deposit.

 

The ruling puts the would-be buyer on the hook for the difference between the contract he signed — for $1,260,000 — and what it eventually sold for after the homeowners failed to find another buyer to match the initial high offer.

 

The original deal was struck in May 2016, a month that saw record-breaking frenzy in the Vancouver-area real estate market.

The sellers, who were downsizing to a condo, accepted a no-subjects offer with a $60,000 deposit to buy their single-storey rancher in Surrey's Newton neighbourhood, according to the court ruling.

 

But by the closing date, Sept. 1, 2016, the buyer walked away.

 

Court documents don't say why the deal wasn't completed, and the buyer's lawyer won't comment on his client's reasons.

But that summer a key factor changed in Metro Vancouver's real estate market: the B.C. government brought in a 15 per cent property transfer tax on foreign nationals buying real estate in the region, and the seller's realtor blames that for the lower sale price.

Sales cooled in the Metro Vancouver real estate market after the province introduced a 15 per cent foreign buyers' tax on Aug. 2, 2016. (Christer Waara/CBC)

 

Market 'changed significantly'

On Sept. 2, the day after the deal wasn't done, the sellers filed a lawsuit against the would-be buyer, and soon listed their property again.

 

But their new agent, John Massullo, told them it wasn't likely they'd get a price anything like the May deal, according to court records.

"The real estate market in the Lower Mainland had changed significantly since [the seller] entered into the contract with [the buyer], in particular because the B.C. government had passed the foreign buyers' tax," the lawyer told his client, according to Master Leslie J. Muir's judgment.

 

Despite months of showings, professional photos, and several price drops, it took another five months to sell, for the much-reduced price of $910,000.

 

"Although this offer was less than I had expected when I listed the property for sale, the market remained soft," said Massullo in an affidavit.

 

The precise impact of the foreign buyers' tax remains unclear. Sales did slow after the tax's introduction in August 2016, but benchmark prices never saw anything approaching the 28 per cent price drop on this property.

 

Nevertheless, the default judgment awards the sellers the $350,000 price difference, plus about $10,000 in carrying costs for the property over the five months, including utilities, property taxes and hot tub chemicals.

 

The buyer didn't respond in time for the court to hear his side of the case, and retained his current legal counsel just days before the judgment.

 

He can apply to overturn the judgment, which he plans to do, his lawyer said.

 

"Our client is applying to set aside the default judgment, and he wants his day in court to be heard on the merits," said Jasdeep Aujla.

Aujla declined to speak on the substance of the case before it is heard in court.

 

'Difficult' experience

The sellers' lawyer, Andrew Morrison, says the experience has been "difficult" for his clients who are an elderly couple.

He says the husband only chose to sell the family home after his wife suffered health complications and needed more care.

They are, however, prepared to go back to court if needed.

 

Even if the the legal case is settled, Morrison says collecting a payment as large as $300,000 could drag on for years.

He hopes other buyers learn from this case that as soon as a real estate contract is signed, they are liable for the deposit regardless of whether the seller can get more or less than the agreed upon price at a later date.

 

If they get less, much like this case, they could be on the hook for the difference and any damages incurred.

 

http://www.cbc.ca/news/canada/british-columbia/buyer-who-walked-away-from-real-estate-deal-ordered-to-pay-360k-1.4232844

[Harvey Spector]

Influx of New Homes Set to Hit Greater Vancouver Market

If all projects complete, second half of 2017 will see double the new homes of first half

 

Greater Vancouver is experiencing 10-year lows in home resale inventory, and pre-sale units are being absorbed almost as fast as they are released – pushing prices far above even last year.

 

However, there could be some relief in sight, if all the projects slated for completion during the second half of this year finish on time, according to a mid-year update from real estate marketing company MLA Canada.

 

Around 4,200 new attached units (condos and townhomes) completed between January and June 2017, in 38 buildings, with 88% of new homes released in the first quarter sold, and 82% absorption in Q2. Just five townhome projects were released in Q2 of 2017 and all are over 90 per cent sold, said MLA.

 

However, more than double that total number, at least 9,390 new attached units in 73 developments across Greater Vancouver, are slated for completion between July and December 2017.

 

 

MLA’s research division MLA Advisory, which compiled the Mid-Year Market Review 2017, broke out the numbers of anticipated new units by city. It revealed that Burnaby would see nearly half of all those new units, with 4,000 new homes slated for release in the second half of the year, versus just 250 completed Burnaby homes in the first half.

 

Vancouver is expected to increase its output only slightly in the second half, to 1,550 new units between July and December, compared with 1,150 in the previous six months.

 

Vancouver’s total is closely followed by Coquitlam, which is expected to more than double its output to 1,270 new attached homes in the second half of 2017.

 

 

The report also looked back on the effects of the foreign buyer tax, which was launched one year ago today (August 2).

 

MLA said, “The foreign buyer tax made no real impact long-term in curbing demand or activity in the real estate market.”

 

The report added, “The real estate market in Vancouver showed signs of decreased activity before the 15% Foreign Buyer Tax was introduced back in August of 2016.

 

The sales-to-active listings ratio has now resumed to levels seen prior to the tax.”

 

The report observed that the make-up of home sales has changed since spring last year, pointing out that the proportion of home sales that are detached home has fallen from around 45% in February 2016 to around 35% today. However, the decline in detached homes’ share of the market occurred between February and August last year, when it was around 30%, and it has since climbed to around 35%.

 

 

View the full Mid-Year Market Review 2017 report

 

http://www.rew.ca/news/influx-of-new-homes-set-to-hit-greater-vancouver-market-1.21561733

[Harvey Spector]

 

[Harvey Spector]

 

[Violator]

Anyone have 28 million

 

http://theprovince.com/news/local-news/28-million-price-tag-for-villa-di-fonti-estate-in-surrey-raises-eyebrows#comments

 

Seems to be a bit of a rip-off even for bc standards.

[Lancaster]

2 hours ago, Violator said:

Anyone have 28 million

 

http://theprovince.com/news/local-news/28-million-price-tag-for-villa-di-fonti-estate-in-surrey-raises-eyebrows#comments

 

Seems to be a bit of a rip-off even for bc standards.

If I had 28 million.... Surrey wouldn't ever be on the list on places to live.  

[Nuxfanabroad]

Waiting on "the big one".

 

Underreported Pacific radiation flowin', likely for eternity.

 

Fires burning the mtn ranges.

 

IF I were a millionaire, not sure where I'd buy land these days?..

[tybarber]

On 8/19/2017 at 5:22 PM, Harvey Spector said:

 

Hey Harvey, really appreciate all the updates regarding housing. Question and some commentary for you, does the BCREA (or any organization for that matter) look at number of rentals and rates as well over the last year? Has this empty home tax had an effect do you know?

 

The reason I'm asking is I live in a shared house along the Cambie corridor which got bought up by a developer (5 mil for a piece of garbage, but that's for another day) and we all are looking to move out. Over the past year, I would occasionally check craigslist to see what was available for rent. And as I'm looking now, it seems like the supply of available 1 bedroom condos (brand new nonetheless) to rent is significantly larger than what I remember from say 6 months ago. This is purely anecdotal of course, so I'm wondering if BCREA has the stats for this? It seems that the empty home tax might be having an effect, in conjunction with a lot of new developments being completed. Because there just seems to be an astounding number that are brand new. 

 

In one of the earlier articles posted, it talked about supply, and how that's not the real underlying problem for housing prices (not necessarily rentals), which I agree with. Maybe there's a supply problem for the purchase of condos, but for renters, it just doesn't seem that way? The most notable statistic is how the rate of increase in dwelling numbers has matched or exceeded the growth rate of the City, and has consistently been like that for the past 20 years.The argument has been that, well, there are too many luxury condos that are being built. 

 

So, If just looking at the City of Vancouver, do you think it's possible to see downward pressure on rental prices? I only say this because the supply seems so high right now, and where's the demand for these luxury units coming from? And, also posted in one of the previous articles, it had mentioned that some major developments are slated for completion at the end of this year (again, more luxury homes) and are supposed to double (not sure on this figure) the number of units completed last year. So, a combination of these high 1-bedroom rental rates (~1,800 - 2,000), which seem  to be all that's on the market, and all that will be coming on the market, who can they rent them to? I only say this of course assuming that there's quite a few that need to be rented, because, well the owner doesn't actually live here. There's only a select group that seem to be in a position to comfortably be able to rent these units. It seems to me to only be the sort of 25 - 35 year old young professional that is making over 60K/year. Which even then seems to be a bit of a stretch for some. We don't have the high paying tech industry that sort of, "justify" isn't the right word, but maybe, "accompanies" the high rental rates we see in SF, so something seems awry to me that just doesn't add up here in Vancouver. Unless you consider that industry developers. Of course though, people have been saying that for the last 5, 10 years and nothing has happened to start put a downward pressure on prices. 

 

Anyways, what I'm seeing could be the total opposite of what the stats say, but that's just what I'm seeing as I start too look for a new place to live in the City. 

[-DLC-]

Ticks me off...Richmond city council back tracked on their plan to halt mega houses on ALR land (actually saw one councillor...can't stand him...wink at his developer friends during the meeting).  A lot of back scratching takes place.

 

With that, some of these monstrosities that are being presented as "multi generational homes" for farmers are anything but.  It's so transparent.  One of the guys selling off most of the farm land in Richmond was at the meeting, pleading his case as a "farmer".  In his suit, gold watch, etc.  His face is on most real estate signs on farmland here.

 

But I'm glad to see we're at least exposing what's really happening on this land and in these massive "buildings" that are anything but homes.

 

Quote

RICHMOND — The B.C. Civil Forfeiture Office is attempting to seize a $5 million, 13,000 square-foot mansion in rural Richmond that was allegedly used for illegal gambling, money laundering, kidnapping and blood-soaked assaults.

The sprawling eight-bedroom and 11-bathroom property — built on two-acres of Richmond agricultural land reserve — is also at the centre of an anti-gang investigation.

“This is a large and complex investigation,” Sgt. Brenda Winpenny, of B.C.’s Combined Forces Special Enforcement Unit, said Friday. “We anticipate charges and arrests.”

A civil forfeiture action filed June 29 in B.C. Supreme Court alleges that defendant Wen Feng, a woman whose listed address is in Aurora, a suburb north of Toronto, bought the Richmond property in October 2015. According to B.C. Assessment Authority records, the sale price was $4.4 million.

But she wasn’t the real owner, and “acted as a nominee or ‘owner of convenience,'” the claim states. The other named defendant, Lap San Peter Pang, is Wen Feng’s brother and “the beneficial or ‘true’ owner of the property,” the claim alleges.

The claim also alleges the property “is an instrument and proceeds of unlawful activity,” and “has been used to engage in crimes,” including “laundering the proceeds of unlawful activity.”

In a response filed Aug. 10, Wen Feng said she bought the “recently built, luxurious mansion of over 13,000 square feet” as an investment, and “sourced the down payment” using a line of credit secured against her personal home, the sale proceeds of a Toronto condo, a loan from a friend, and a mortgage from the Bank of Nova Scotia.

Feng’s response said that she leased the property to a group called the Vancouver International Chinese Association, with the understanding this was a group formed by Chinese business people “to facilitate networking and international business” and they would use the property “to hold functions and meetings.”

After May 1, 2016, Feng terminated the lease. The property is now listed for sale at just under $6 million.

Feng’s response denies that she is related to Lap San Peter Pang. Feng said she never authorized him to take possession of her property, and she had no reason to believe illegal activity was occurring at the property.

Feng’s Vancouver lawyer did not respond to a request for comment on the case, and no response has been filed by Lap San Peter Pang.

It was in December 2015 that the B.C. Lottery Corp. was informed the mansion was operating as an illegal casino, the B.C. Civil Forfeiture Office claim alleges.

In April 2016, Richmond RCMP entered the mansion in response to an anonymous call, the claim states, “that someone was being held hostage at gunpoint inside the residence.”

Police found gaming tables and 15 people involved in gambling, a large amount of casino chips, playing cards, a money counter, and “an elaborate video surveillance system,” mounted above the gambling tables, the claim alleges.

Next, in May 2017, police responded to reports of a person admitted to Richmond General Hospital who had been stabbed at the property, the claim alleges. Inside the mansion police found “25 individuals, dancing and drinking” and “blood-soaked paper towels in a kitchen garbage can.”

On June 13 this year, a person was admitted to Richmond hospital “with a broken arm, broken nose, and other injuries after being kidnapped, forcibly confined and assaulted with a metal bar or pipe,” at the property on the previous day, the claim states.

 

 

© Copyright Times Colonist

http://www.timescolonist.com/news/b-c/b-c-agency-trying-to-seize-alleged-illegal-gaming-house-in-richmond-1.22016855

[apollo]

13 hours ago, Violator said:

Anyone have 28 million

 

http://theprovince.com/news/local-news/28-million-price-tag-for-villa-di-fonti-estate-in-surrey-raises-eyebrows#comments

 

Seems to be a bit of a rip-off even for bc standards.

That's outrageous. Great property... but 25 million over assessment... lol 

 

Who knows though... some foreigner might buy it without even seeing it. It's either blow 28 million in Vancouver of your dirty laundered money which our government openly accepts or have it taxed back in China, India, Iran, etc... 

[Ghostsof1915]

 

 

Edited August 22, 2017 by Ghostsof1915