Vancouver property tax on foreign buyers takes effect today

CTV News Channel: Digesting Vancouver's tax Trust Realty Keller Williams, Monte Burris, says the gov't is trying to restrict demand with this tax and buyers already have limited supply

VANCOUVER - A 15 per cent tax on foreign homebuyers in Metro Vancouver takes effect today, but experts question whether it will have an impact on housing affordability in the region.

The tax was legislated by the Liberal government last week with the release of data showing that about 10 per cent of property transfers in Metro Vancouver involved foreign nationals during a five-week period this summer.

Urban Development Institute president Anne McMullins says removing foreign buyers from the market doesn't make a huge dent in the demand.

McMullins says the population growth in Metro Vancouver is outpacing housing development, meaning there will be no end to bidding wars.

She says "flooding" the market with more housing stock is the best solution to control prices.

Finance Minister Mike de Jong says the province will monitor whether the tax causes a reduction in foreign demand and opens up more housing options to British Columbians in the coming months.