Excellent office meeting today with guest speaker Andrey Pavlo, Professor of Finance at SFU.
Andrey talked about how government and city policies and taxes have affected the real estate supply and demand and continue to influence values in Vancouver.
- Government taxes and policies are not having the desired impact on housing issues.
- Vancouver rental market vacancy rate is around 1%.
- We have an extreme market supply shortage of about 57,000 residential units.
- Exceedingly slow city approval for condo project (city approval back log to year 2016).
- High taxation, including Vancouver School Tax, BC Speculation & Vacancy Tax, Vancouver Empty Home Tax, etc. are making the Vancouver building environment unfavorable to builders and expensive for many home owners.
All these factors are contributing to a decrease in new building development, hence a decrease in housing supply. Contact us to discuss the impact for your particular marketplace.