Recreational property prices in certain areas of BC are expected to dip because of the speculation tax, a report finds

VANCOUVER (NEWS 1130) – Buying a recreational property in some parts of this province could be getting a little more affordable.

Prices in certain areas are expected to dip, according to a new report from Royal LePage.

Much of that is because of the speculation tax says Adil Dinani with Royal LePage.

“Whenever there’s a new tax implemented, it generally shakes consumer sentiment. And in this case, the Okanagan Valley, areas in Victoria, will probably see sales activity pull back in the coming months. And there are some areas in the Fraser Valley that will also be impacted such as Abbotsford, Chilliwack and Mission,” says Dinani.

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But areas like Whistler and the Gulf Islands among others, aren’t affected by the tax so he expects similar properties there won’t be negatively impacted.

Overall, Canada is forecast to have an 5.8-per-cent increase in recreational property values, while prices in BC are expected to drop 2.8 per cent.

“Our report essentially discusses how those regions that are not impacted by the tax will continue to flourish. And regions that are impacted by the tax, will see a bit of a pull-back in sales activity over the coming months as people, would-be purchasers digest the new tax,” says Dinani, adding we are entering the height of the selling season in many markets.

“Prices in regions that are not impacted by the new speculation tax will continue to flourish and stay strong. However regions that are impacted by the new speculation tax, will likely see a leveling to a bit of a decline in sales activity over the coming months.

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“Recreational property markets that are being impacted by this new tax are areas like Kelowna, the Okanagan Valley, Nanaimo, Greater Victoria. But there are regions such as the Gulf Islands, Parksville, Qualicum Beach and Whistler, very prominent recreational markets that are not affected by this tax.”

Dinani also expects many people living abroad to sell their secondary homes in BC to avoid the tax.

Manitoba and Atlantic Canada are the only other regions expected to see a drop in the same category.

Royal LePage Recreational Property Report 2018