Would B.C.'s Proposed Unsold-Condo Tax Lower Vancouver Condo Prices?

A proposed B.C. tax could put additional financial pressure on developers holding completed, empty condos — but it wouldn't guarantee lower prices for Vancouver buyers.

The BC NDP's September 25 election proposal, announced four weeks ahead of the October 24 provincial vote, would apply to completed condos that remain empty and unsold for more than one year. There would be no tax during year one. The rate would begin at 2% in year two and rise by one percentage point for every additional year the unit remained unsold. Party leader David Eby cited a Real Property Data report estimating roughly $4.4–4.6 billion worth of unsold condo inventory sitting empty across Metro Vancouver, and said the policy could unlock as many as 5,000 homes. Source: bcndp.ca

As with any campaign promise, it's worth being clear about what this is: a platform commitment from one party in a contested election, not enacted legislation.

Could the Proposal Bring More Condos to Market?

The intended incentive is clear: make holding finished inventory increasingly expensive the longer it sits empty.

A developer might respond by reducing prices, offering buyer incentives, renting units out, or selling multiple homes to another buyer. Any of those responses could put more completed housing into use.

However, "more available" doesn't necessarily mean "affordable to every buyer." A developer's construction financing, project costs, and existing purchaser agreements can all affect how much pricing flexibility actually exists.

What Are the Possible Trade-Offs?

The proposal has drawn pointed criticism from parts of the real estate and development industry. Brendon Ogmundson, chief economist with the BC Real Estate Association, has warned that forcing financially stressed developers into sales could undermine their ability to build future supply — the opposite of the long-run affordability goal. Ryan Berlin, chief economist with Rennie & Associates, described it as effectively penalizing developers for completing projects at the wrong point in the market cycle. Wesgroup CEO Beau Jarvis called it punitive and said developers aren't sitting on empty units by choice.

On the political side, BC Conservative Leader Lorne Doerkson has criticized the proposal as more taxation rather than a solution, arguing that housing starts and sales are already declining under the current government.

The final effect, if the policy were ever enacted, could differ significantly between large and small developers, completed versus unfinished projects, and neighbourhoods with different buyer demand.

Should Buyers Wait for the Policy?

Most importantly, this remains a campaign proposal, not enacted legislation — its outcome depends on the October 24 election and any legislative process that would follow. For buyers, it's reasonable to monitor completed inventory and developer incentives as this story develops. It's not reasonable to delay a purchase assuming a specific discount will materialize, on a timeline that doesn't yet exist.

Compare new construction with resale alternatives on their own merits: GST, completion timing, strata finances, warranties, available incentives, and today's mortgage terms. The relevant question isn't whether one potential policy will eventually make every condo cheaper. It's whether the complete cost and risk of a particular home make sense for you right now.

Frequently Asked Questions

Is the unsold-condo tax currently law? No. It's an election proposal from the BC NDP, announced as part of the campaign for the October 24, 2026 provincial election — not enacted legislation.

Would every new condo be taxed? No. The proposal targets completed units that remain empty and unsold for more than one year specifically — it wouldn't apply to units under construction, recently completed units, or owner-occupied homes.

Would developers have to reduce prices? Not necessarily. Developers could pursue other responses, including renting units out, offering non-price incentives, or restructuring how inventory is sold, rather than cutting list prices directly.

Should buyers wait for the policy? Only if waiting genuinely fits your own finances and housing timeline — not on the assumption that a specific discount is coming, since the policy isn't enacted and its details, timeline, and even its existence remain uncertain.