British Columbia continues to face a persistent shortage in housing supply, particularly in urban and high-growth regions. While recent policy interventions have been designed to address affordability concerns, elements of the current taxation framework are contributing to constraints on housing development and investment.

The Additional Property Transfer Tax applied to foreign buyers and the proposed expansion of the Provincial Sales Tax (PST) to real estate-related services materially affect the cost and feasibility of new housing delivery. These measures influence the availability of capital, the financial viability of development projects, and the overall pace at which new housing is brought to market.

Addressing housing affordability requires a structured approach that prioritizes increasing supply while ensuring that taxation policy does not inadvertently undermine this objective.

In light of that, BCREA has crafted a new discussion paper, Unlocking Housing Supply: Targeted Reform of the Additional Property Transfer Tax for Foreign Buyers and Proposed Provincial Sales Tax Expansion, which formed the basis of the Association's June 9, 2026, presentation to the BC Select Standing Committee on Finance and Government Services about priorities for Budget 2027.

The discussion paper further unpacks the issues mentioned above and outlines two main recommendations for the BC Government:

• Reform the Additional Property Transfer Tax for Foreign Buyers
• Do Not Proceed With the Expansion of the Provincial Sales Tax

The paper also includes an additional recommendation focused on strengthening strata governance.

Taken together, these recommendations represent a balanced approach that supports both the delivery of new housing and the integrity of the housing system over time.

To read the full discussion paper, click here.

To subscribe to receive BCREA publications such as this one, or to update your email address or current subscriptions, click here.