Foreign buyers double in month in Victoria-area housing market
Lindsay Kines
The Vancouver Sun
VICTORIA — Housing sales to foreign buyers more than doubled in Greater Victoria from September to October, prompting the B.C. government to increase its scrutiny of the region’s real estate market.
The latest statistics show foreign nationals involved in 55 sales in October compared with 27 the previous month, while their share of total sales jumped to 6.3 per cent from 3.3 per cent. The value of the sales to foreign buyers nearly tripled to $54 million from $19 million.
Finance Minister Mike de Jong said the province is monitoring the situation to see whether the 15 per cent tax on foreign buyers in Metro Vancouver is driving offshore money to the capital region.
“The data suggests that we haven’t seen a lot of drift into either Squamish or Abbotsford,” he said. “The trend line in Victoria seems to be upward — not dramatically yet — but we’re watching it very carefully.”
If necessary, the government could extend the 15 per cent tax to the capital region to cool the market, he said.
“You’ll recall that we structured the tax in a way that would allow — if we make the decision — for a geographic area to be added to be captured by the 15 per cent tax,” he said Tuesday, while releasing his second quarterly update on the province’s finances. “That could be done by regulation.”
B.C. NDP housing critic David Eby said it was “totally predictable” that imposing a foreign buyers tax in Vancouver would drive speculators to the Greater Victoria and elsewhere.Jason Payne / PNG
B.C. NDP housing critic David Eby said it was “totally predictable” that imposing a foreign buyers tax in Vancouver would drive speculators to the Greater Victoria and elsewhere.
“The obvious response to me seems to be that the provincial government should simply level the playing field and apply the tax to the south of Vancouver Island and any other jurisdiction that is affected by this kind of activity,” he said.
“I don’t understand why we’re in the situation again of the province saying they’re going to study the problem before they act. How high do prices have to go in the [capital region] before they apply the same tax?”
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