April 17, 2023 April 2023 Trending Topic: Government Policy Changes and Amendments For Housing

In this episode of April 2023's Trending Topic, Brittany Reimer and Suzana Goncalves take a deep dive into the most recent Government policy changes and amendments to the Real Estate Marketing and Development Act and Foreign Buyers Ban. This chat looks into the advantages and risks associated with the BCFSA amendments for developers, as well as the unforeseen consequences of the Foreign Buyer’s Ban and the much-needed shift in the policy to avoid further supply shortages.

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The BC Financial Services Authority (BCFSA) has introduced amendments to the BC Real Estate Marketing Act, allowing developers to begin marketing at an earlier stage, potentially reducing the lifecycle of the development process and reducing financial exposure for developers. However, having an accurate estimate of all costs before sales is important, as it can be difficult to have an accurate picture as early as the third reading. Developers must also be wary of the 12-month allowable window to achieve construction financing and a building permit, which remains in effect with this change.

The amendments to the Foreign Buyer's Ban allow non-Canadians to buy residential property expressly for housing development, bringing more homes into the marketplace. The changes also mean that the bans no longer apply to vacant land zoned for residential/mixed-use, and they have increased the threshold for which a company is judged to be "foreign-controlled." These changes may give more leeway for non-Canadian entities to invest in BC and could be a good thing for capital flowing into BC and investments being made in neighbourhoods, thus strengthening the market.

CHAPTERS

• Intro (0:00)
• BCFSA Amendments (0:51)
• Foreign Buyer's Ban (4:33)
• Closing (8:27)

ADDITIONAL LINKS FOR THIS EPISODE:

• April 2023 Greater Vancouver Pre-Sale Pulse Episode
• April 2023 Fraser Valley Pre-Sale Pulse Episode
• April 2023 Pre-Sale Pulse Report 
• MLA Canada’s Cameron McNeill On BC’s New Presale Marketing Changes
• Amendments to the Prohibition on the Purchase of Residential Property by Non-Canadians Act’s accompanying Regulations
• Subscribe to Newswire
• Contact Advisory

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