BC and First Nations agree to sell condos below market price

Thanks to an agreement between First Nations and the government of British Columbia, thousands of homes in Vancouver will be made available at 40 percent lower costs.

Premier David Eby described the agreement between the province and the Musqueam, Squamish and Tsleil-Waututh First Nations as a “remarkable” success. In one of the most expensive real estate markets in the world, around 2,600 homes could be sold for 60 percent of their value.

The agreement calls for the sale of one-, two- and three-bedroom homes under a 99-year lease on First Nations land, with the government financing the remaining 40 percent of the value, which must be repaid upon sale of the home or 25 years after the purchase date.

There will be checks to keep out speculators. Buyers must also have an annual household income of no less than $131,950 and must meet a number of other eligibility criteria, including being pre-qualified for a mortgage and making a minimum down payment of five percent.

Potential buyers could register and confirm their eligibility for a unit in West Vancouver's Heather Lands as early as next spring. Eligible buyers would then be randomly selected, with priority given to first-time buyers.

Eby says he looks forward to advancing similar ideas across British Columbia, adding that the NDP's upcoming election platform will have a strong focus on housing.

A studio is expected to sell for about $372,000, a one-bedroom apartment for $510,000 and a two-bedroom apartment for $780,000. About 540 of the apartments will be social housing.

“The dream of homeownership has been out of reach for too many for too long, especially here in Vancouver,” Eby said Thursday at the announcement.

The plan will help thousands of middle-class people enter the housing market, he said, while allowing the government to recoup its financial contribution.

“This means more families can put down roots to live and work here, while we address labor market challenges and grow our economy,” the Prime Minister said.

According to Eby, the province's contribution is estimated at about $670 million in loans.

This report by The Canadian Press was first published September 19, 2024.