Market News

To enhance housing affordability, the Government of British Columbia is implementing three significant adjustments to its Property Transfer Tax (PTT) system. Firstly, there will be an increase in the threshold for the first-time homebuyers’ exemption from a fair market value of $500,000 to $835,000. Under this adjustment, the first $500,000 of the property value will be exempt from the tax. The complete elimination of the exemption will phase out at $860,000, while properties valued under $500,000 will be entirely exempt. These modifications will take effect on April 1, 2024.

It is projected that these changes will extend benefits to approximately 14,500 first-time homebuyers, doubling the previous number, with potential savings of up to $8,000 upon purchasing their homes.

Secondly, the exemption for newly built homes purchased as principal residences will be expanded from $750,000 to $1.1 million in fair market value. Properties valued between $1.1 million and $1.15 million will experience a phase-out range for this exemption. This adjustment will also come into effect on April 1, 2024.

Thirdly, a new PTT exemption will be introduced for the acquisition of qualifying secured purpose-built rental housing buildings. These buildings must consist of a minimum of four apartment units, be non-stratified, and be designated for rentals for at least 10 years. Additionally, the residential portion of the building must be entirely dedicated to rental purposes. This particular exemption will apply to transactions involving such buildings between January 1, 2025, and December 30, 2030. Given the challenges many face in attaining homeownership due to soaring property prices, this policy aims to stimulate the development of more "missing middle" rental housing.

The provincial government anticipates that these various exemptions will collectively reduce transaction costs by over $100 million annually.