Greater Vancouver Real Estate in Review 2023

2023 started off with a bang – a few changes to our Real Estate Rules and Regulations, as well as some changes to zoning bylaws. With the increase demand for housing, the City of Vancouver and the province of British Columbia have been active in trying to find solutions. Here are the 2023 changes that we saw:

Prohibition on the Purchase of Residential Property by Non-Canadians

The year started off with theProhibition on the Purchase of Residential Property by Non-Canadians January 1, 2023. This prevented non-Canadians from buying residential property for 2 years.

What was included and some loopholes?

• Defines residential property as buildings with 3 dwelling units or less.
• Non-Canadian can purchase 4+ dwelling units, bare land, and within certain low
• Non-Canadian can purchase if purchased with Canadian/PR spouse.
• Temporary resident can purchase up to $500,000 and if meet certain conditions.

While $500,000 is not a lot of money, here are a few places that you could buy for that price

• Work permit holders can purchase if have 183 days or more remaining on their work
  permit and have not previously purchased residential property in Canada during the
  prohibition.

Canada Anti-Flipping Tax – Jan 1, 2023

If you own a property for less than 365 consecutive days prior to disposition, the profit from the property is fully taxable business income. The 50% capital gains inclusion rate or principal residence exemption does not apply.

Home Buyer Rescission Period (HBRP) – Jan 3, 2023

On January 3, 2023, the B.C. government implemented the Home Buyer Rescission Period (“HBRP”) for residential real estate transactions. Also known as the “cooling-off period,” this measure will give homebuyers up to three business days to rescind an offer on a home after the offer has been accepted.

• Leaseholds, 5 or more units (commercial), court-ordered sales, and if under REDMA are
  exempt. Put “N/A” for rescission amount, rescission notice, and rescission right date.
•  Rescission fee of 0.25% of the purchase price.
• To date less than 1% of deals have rescinded and only about 5 across Macdonald Realty
• Always use the BCREA calculator and date tool for writing and receiving offers.

There are loopholes to-this that agents have figured out. Most people do not rescind in multiple off as they are in competition. In a market that has increased inventory, there is pressure from buyers to put their best and final forward.

55+ Age Restricted Stratas Additional Exemptions – May 1, 2023

Exemptions for: Caregiver living in unit.

Legacy exemption for & ;55 living in unit prior to bylaw passed. A 55+ owner or tenant or occupant can have their spouse, partner, or children (including adult children) live with them even if don’t meet age criteria.  A ¾ vote by Strata Corporation required to change bylaws to create a 55+ age restricted strata, subject to adhering to the exemptions.

City of Vancouver Permitting Improvement Program – June 2023

In June 2023 PDF file (320 KB), City Council formally adopted the 3-3-3-1 Permit Approval Framework to help eliminate the housing construction backlog, increase the supply of market, non-market, and supportive housing, with these permit approval timeline targets:

•  3-3-3-1 Permit Approval Framework to reduce permit approval times. 3 days to approve
  home renovation permits, 3 weeks to approve single-family and townhouse permits, 3
  months to approve professionally designed multi-family and mid-rise projects with
  existing zoning in place, 1 year to approve high-rise or large-scale project permits.
•  Residential Renovation Fast Track permitting within a week for simple renovations
  under $95,000.
•  Project Requirements Exploration Tool (PRET) to explore regulations and requirements
  and submit applications online.

Multiplexes Vancouver – Oct 17, 2023

• 9 RS zones changed to the new R1-1 (Residential Inclusive Zoning) as of Oct 2023.
•  4-5 dwellings on a 44 foot lot
• 5-6 dwellings on a 50 foot lot
• 8 dwellings for rentals and non stratified
• Reduce single family house from 0.7 FSR to 0.6 FSR
• Permitted 1.0 FSR for 6 dwelling units where at least one is a below-market unit or pay a
  fee
•  Increase the size of a laneway house from 0.16 FSR to 0.25 FSR
•  Reduce the depth of a basement from 1.5 m (~5 ft.) to 1.2 m (~4 ft.)

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Learn about more homes for sale in West Coquitlam, Port Moody , or Burke Mountain?

Check out The Grove, Burqville and Dwell,