B
ritish Columbia's premier, David Eby, and housing minister, Christine Boyle, have dismissed calls from the real estate sector to ease restrictions on foreign investment in residential property. They reaffirmed their government's commitment to making housing more affordable for locals.

    "We won't go back to the days of empty condos and skyrocketing prices driven by foreign investors," Boyle said in response to a letter signed by 25 developers, including Polygon and Westbank. The letter urged the federal government to reconsider its ban on foreign buyers and the provincial tax on foreign investment.

    The developers argued that foreign investors are crucial for presale condo markets, claiming that without them, fewer projects would reach financing thresholds, threatening housing supply and jobs in BC's construction sector. They pointed to a near-50% decline in housing starts and a 22% drop in multi-unit project launches as evidence of the market's struggles.

    Developers suggested Australia's 2025 housing reforms, which permit foreign investment in new housing but not resale properties, as a potential model for Canada. However, Eby rejected this idea, saying that BC won't return to an investor-driven model that prioritizes profits over affordability.

    Eby referenced Vancouver's CURV project, where international investment led to a price increase from $16 million to $69 million, calling it "completely stupid and disconnected" from the local market. He emphasized that foreign capital should be used to build housing for Canadians, not sit empty as speculative assets.

    The federal government has yet to comment on the matter, but its Housing Department stated that the ban helps ensure homes are used by Canadians rather than being treated as a speculative asset class for foreign investors.