B.C. NDP proposes new tax on unsold condos, raises vacancy tax on foreign buyers
David Eby announced the plan during a Burnaby campaign stop, targeting 5,000 vacant Metro Vancouver units worth $4.45 billion.
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Premier David Eby proposed Tuesday a new tax on unsold condominiums and higher vacancy taxes targeting thousands of empty units across Metro Vancouver.
The "Unsold Condo Tax" would start at 2% for newly completed strata homes sitting empty and unsold for more than a year, rising 1% annually for each additional year vacant. Eby also proposed raising the Speculation and Vacancy Tax for domestic owners from 1% to 2% and for foreign owners from the current 3% to 5% (the rate is set to rise to 4% in 2027 under a prior announcement).
According to Real Property Data's September report, Metro Vancouver has 5,000 unsold condos worth a combined $4.45 billion. More than 1,300 of those units were completed over two years ago; some have sat vacant since 2019.
"People shouldn't pay sky-high prices to rent or buy a home while developers sit on thousands of finished condos waiting for prices to go up," Eby said. The BC NDP estimates the new tax could bring 5,000 vacant units into active use. Revenue from the vacancy tax increase would be directed toward building affordable housing.
Eby framed the announcement as a response to Trump's trade war increasing prices in B.C., and accused the Conservative Party of opposing the approach. The B.C. snap election is set for October 24.
Will the tax apply to condos sold at a loss, or only those held for speculation?
How will the province enforce the tax on units owned through numbered companies or trusts?
What happens to revenue if fewer than 5,000 units actually enter the market?
We'll update this story as answers emerge.
The facts
What is the Unsold Condo Tax proposed by David Eby?
The tax starts at 2% for newly completed strata homes vacant and unsold for more than a year, then increases by 1% annually for each additional year of vacancy.
How many vacant condos are in Metro Vancouver?
According to Real Property Data's September report, Metro Vancouver has 5,000 unsold condos worth a combined $4.45 billion.
What changes is Eby proposing to the Speculation and Vacancy Tax?
The tax would increase from 1% to 2% for domestic owners and from 3% to 5% for foreign owners.
