Unsold B.C. condos become election issue

This is one of the most high-profile developments in Vancouver. And yet this new luxury high-rise has become a cautionary tale for developers. It was completed nearly two years ago, but new data shows almost half of the 330 units inside are sitting empty, illustrating a housing market that's shifted since many of these projects started a few years ago. Things were very buoyant. There was a lot of optimism. But since then, we've had a lot of new government taxes that have been imposed that have altered the market plus we've seen an overall change in economic circumstances. And it's not just in downtown Vancouver. About three quarters of the condo units in a Burnaby high-rise remain unsold a year after completion. Another condo tower in Burnaby is nearly 60 percent empty more than a year after it was finished and about half the units in a Coquitlam high-rise remain unsold more than two years after completion. With a struggle to find buyers, many developers are having to reduce prices. But experts point out some lenders won't allow that. And it also drives down the value of other units in a building. Metro Vancouver's unsold condo stock hit a record high 5,400 units in June, up roughly 75% over the year before, representing about $4.5 billion in inventory. And it's prompted a new threat from the campaign trail in B.C.'s upcoming election, squarely targeting developers. If you don't sell these units in the next year, we will impose a tax on you. That proposed 2% tax met with criticism from other candidates and many in the industry as the overall affordability problem persists. While having so much stock right now in condominiums, we haven't necessarily seen changes in prices. We've seen some changes in prices, but then we haven't seen the alignment towards, say, what local incomes can afford. And so, say experts, the challenge remains. Finding a way to bridge the gap between what's available and what's affordable. Tanya Fletcher, CBC News, Vancouver.