The Liberal party has released their donor list as a statement of transparency, and not surprisingly, the top donors are real estate developers. Last year, $400,000 has been donated to the Liberal party by the developers of the popular building Wall Centre in Vancouver. Another large donation includes $260,000 from a developer that just finished a new building in Kitsilano just a couple of years ago.
Over the past while, the media and public have been blaming foreign investors for the unaffordability of homes in Vancouver. They claim that these investors are swiping up every home possible and causing the prices to spike to unrealistic levels. Even the Liberal Government came forward with a 15% tax on foreign investors when purchasing a home. Despite what most people thought, foreign investors only take up a small percentage of the population that purchases homes in Vancouver. So what else can be driving our pricing to such soaring heights? Many new presale projects pop up constantly all over Vancouver and surrounding areas. Developers price their condos on a predicted pricing of when the building would be sold. Currently, new projects along the Cambie Corridor are listing 2 bedroom condos at mid $900,000s and higher. In a typical market, nearby buildings will see this pricing and think to sell their own place for a similar price, and so the cycle continues. Developers purchase land years before they start building because they need to go through planning and permits from the City. So land purchased in 2010, will have sales around 2015, with projected pricing around 2020.
Why are there no discussions on how the developers drive our market?
Read more about this here.