Wealthy foreign investors are likely to shift their money to the commercial side of Vancouver’s real estate market to avoid a housing tax, just as deals for office, retail and industrial properties reach an all-time high, brokerage Re/Max Holdings Inc. said.
Commercial real estate transactions in the city climbed to C$7.14 billion ($5.41 billion) in the first half of 2016, almost double the year-earlier tally, and nearly triple the deals in the same period of 2014, Re/Max said in a report Wednesday.
Foreign buyers may take a greater interest in office buildings, warehouses and other commercial properties after the province of British Columbia imposed a 15 percent land-transfer tax on non-Canadian investors in the Vancouver residential market. Since that move, almost two months ago, home sales and price growth have cooled, particularly for luxury real estate.
