B.C. NDP proposes unsold condo tax and vacancy fee hikes

Proposed Condo Tax Targets Unsold Inventory

Eby announced that if his party returns to power following the Oct. 24 snap election, his government will introduce a tax on finished condominium units left empty for more than a year. Standing in front of a condo complex under construction in Burnaby, the NDP leader cited a report from Real Property Data estimating that thousands of unsold units worth $4.4 billion are sitting vacant across Metro Vancouver. They are brand new and ready for people to move in, according to Eby.

The proposed levy would start at two per cent and increase by one per cent for each additional year a unit remains unsold. Eby stated that the policy could unlock approximately 5,000 condos for buyers and renters facing high housing costs. “We will intervene,” Eby said at the campaign event. “We will stand up for British Columbians, just like we stand up to Trump, stand up to developers.”

Political Backlash From B.C. Conservatives

Conservatives. Interim Leader Lorne Doerkson issued a written statement criticizing both the proposed tax and the NDP’s housing record over the past nine years. Doerkson argued that housing starts are falling, sales are down, and finished homes sit empty because residents cannot afford them. “There is no problem the NDP don’t think can be fixed with a tax,” Doerkson said, adding that voters are being offered more taxes four weeks before an election.

While Doerkson has not held a public media event since the election was called on Tuesday, a party spokesperson noted he has been conducting interviews from his home riding of Cariboo-Chilcotin and was scheduled to visit the Lower Mainland. Eby also announced plans to raise the existing speculation and vacancy tax to two per cent for domestic owners and five per cent for foreign owners, a tax he claims the Conservatives would repeal.

Expert Reactions and Questions Over Market Impact

Housing and economic experts have expressed confusion and concern regarding the mechanics of the proposed tax. Simon Fraser University city program director Andy Yan questioned whether the measure is designed to alter developer behavior or simply generate revenue, describing it as an extension of government initiatives introduced earlier in the summer. Those summer initiatives included an ongoing joint federal-provincial plan to purchase over 2,220 vacant condominiums for affordable housing conversion.

Brendon Ogmundson, chief economist with the British Columbia Real Estate Association, warned that the policy carries disastrous potential. Ogmundson explained that developers are struggling financially due to poor market conditions and want to sell their units, but government intervention could force sales at the expense of future building capacity and long-term affordability. “Apparently the government believes that developers should be forced to sell, even if it means impairing their ability to build in the future,” Ogmundson stated.

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