The 15 per cent tax that was introduced in Vancouver has discouraged foreign investors from investing in Vancouver’s residential property market and now turning their attention to commercial real estate.
RE/MAX reported that the commercial sector in Vancouver is faring better than other markets in Canada, because of the propelling force of interest from local investors. Foreign investors are yet to follow.
The Regional Executive Vice President of RE/MAX of Western Canada, Elton Ash said; “Over the next several months, we may start to see more interest from foreign investors. As a result of the recent foreign buyer tax on residential properties, buyers who are interested in investing in Greater Vancouver may start to shift their focus to commercial properties.” The commercial sector in Vancouver’s Lower Mainland increased from 94 per cent for the first half of this year when valued in dollars, the difference was huge when compared with last year. In other places, it differs.
Sales of commercial real estate in Calgary went down year-over-year for the first half of this year, offices slumping by 25 per cent, while Edmonton decline by 8 per cent in commercial sales, with 40 per cent decline in land sales. Ash said; “There continues to be demand for good quality products in the Calgary and Edmonton markets, though a full recovery is not expected until oil prices rebound. For investors, there will likely be some good opportunities coming onto the market later this year and next year as owners start to sell off assets.” Both Regina and Saskatoon seems to be doing well in the commercial area, with precise interest from REITs. Winnipeg demand is far ahead of supply and has high expectations for it to do well until next year.