BC Property Transfer Tax Revenue follows sales value

March 13, 2010

BC Property Transfer Tax (PTT) revenue is forecast to increase 5.3% in the coming fiscal year, according to Budget 2010.

BC Real Estate Association forecasts home sales to increase by 3% and prices by 7% in Greater Vancouver in 2010. We may well see the PTT revenue higher than the Budget forecast.

Below is an except on BC’s economy forecast for 2010 and 2011:

the B.C. economy should continue to benefitstrongly from exceptionally low interest rates. The effect has been clearly felt inThe BC housing market throughout the better part of 2009, where low rates have fired up demand, causing sales of existing homes to surge to new heights. Because key areas of the market in the province started 2010 in very short supply, construction of new housing should be next to benefit in the year.

2010-021.jpgHousing starts for 2010 are projected to rise to 25,600 units, after plummeting by more than half to 16,000 units in 2009. New home building is expected to be brisk in the first half of 2010 – ahead of the introduction of the HST – but moderate in the latter part.

The recent survey of investment intentions conducted by Statistics Canada reveals that firms in the oil and gas and mining sectors plan to ramp up capital spending significantly by nearly $1.4 billion (or 21%) in 2010. This will contribute to a rise of almost 5% in total expenditures on non-residential construction and machnery and equipment in the province.

The B.C government and its crown corporations are now budgeting for an increase in capital expenditures of more than 12% to a total of $8.2 billion during the 2010-2011 fiscal year, an upward revision of more than 6% relative to the previous projection.

The expected pick up in economic activity should invigorate the B.C. labour market. Already on an upswing since late last summer, employment is expected to continue growing throughout 2010, completely reversing the losses incurred during the recession by the end of the year. This is forecasted to translate into an annual rise of 2.1% this year, much improved from a 2.4% decline in 2009. The unemployment rate, however, is likely to remain sticky at 7.7% on average, or slightly higher than the 7.6% last year, due to the entry of more people into the
labour force.

Solid momentum in the B.C. economy is expected to carry into 2011 with growth forecasted to remain steady at around 3.4%. This would be modestly slower than the national average of 3.9%, reflecting mostly the removal of the Olympic boost.

Return to homepage.

Comments

Got something to say?