Amid frustration over Vancouver’s high real estate prices, Mayor Gregor Robertson is calling on B.C. Premier Christy Clark to intervene with a tax targeting people who flip houses.
While experts say foreign ownership is partly to blame for soaring housing prices, Vancouver City Councillor Kerry Jang spoke on behalf of Robertson, saying the province should look at managing other possible factors.
"What drives price up are people flipping houses," Jang said.
Robertson has asked the premier to step in with “speculation tax” that would target people who buy homes solely as investment properties. Jang said the details of the proposed tax still need work.
"One of the ideas we've been kicking around is sort of a sliding scale. So if your house is sold within 6 months nobody's moved in, then you pay a high rate of tax," he said.
Michael Geller, a developer and real estate consultant, said Robertson’s proposed solution is unlikely to lead to any action from Premier Clark.
"I think it's going to be politically attractive for him to say 'I'm going to do something about it,' but he knows full well that the province is not going to do anything," Geller said.
Geller said the province shouldn’t step in when there are other options for managing high real estate prices, such as balancing supply and demand with more, varying housing types.
"Why don't we get more townhouses or more ground-oriented stacked townhouses? These are forms of housing we see all over the world but we don't see them in the city of Vancouver," Geller said.
Aspiring home owners will gather en masse to make their voices heard at the Vancouver Art Gallery on Sunday and a strong turnout is expected.
Robertson was unavailable to speak to reporters on the issue Friday, but issued this statement to the media:
“We definitely need taxation tools that discourage speculation on real estate. It’s clear that rampant speculation on real estate is driving up prices in Vancouver. Vancouver needs the B.C. Government to take action on creating a speculation tax and recognize that we need a fair and level playing field to make housing more affordable for residents in Vancouver, and throughout the province.
“Limiting speculation is an important action for the B.C. government but we absolutely need the Federal Government involved in affordable housing. Their complete absence in supporting low and middle income housing is making it extremely difficult for people, especially young people, to live and work in Vancouver.”
With a report from CTV Vancouver’s Penny Daflos
