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2d ago

B.C. Premier Defends Foreign Buyer Tax, Dismisses Developers’ Appeal

Developers say easing rules is vital to secure presale financing for new condos after housing starts dropped by half.

A neighbourhood of townhouses is seen in an aerial view in Richmond.
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Workers at the construction site for a condo tower in Delta, B.C., on July 2. B.C. housing industry players said in a letter to Prime Minister Mark Carney that if nothing changes, housing supply could continue its slowdown.
B.C. Premier David Eby in Vancouver on Monday. He said on Wednesday that speculative foreign investment created a housing market of unaffordable homes.

Overview

  • A coalition of 26 major B.C. developers issued an open letter on July 29 urging federal and provincial governments to relax foreign buyer restrictions to revive stalled housing projects.
  • Developers contend foreign capital is critical to meet presale financing thresholds, arguing owner-occupiers alone cannot supply early-stage funding.
  • Housing starts in B.C. plunged roughly 50% between March 2024 and March 2025, triggering layoffs, project suspensions and bankruptcies among leading builders.
  • Premier David Eby reaffirmed the province’s foreign buyer tax and rejected a return to the unrestricted investment that left units empty in previous years.
  • Industry leaders pointed to recent reforms in Australia and New Zealand that restrict foreign purchases of existing homes but allow investment in new builds as potential models for Canada.