The Untold Consequence of GST Removal on New Homes in BC

The GST (Goods and Services Tax) Change That’s Quietly Freezing BC’s Housing Market

If you’re thinking about buying or selling a home in Surrey, White Rock, or anywhere in BC, the next three minutes could save you a financial headache—and possibly $65,000.

The federal government is proposing to remove the 5% GST (Goods and Services Tax) on new homes, and while it sounds like a win for buyers, it’s triggering a silent standoff in the market. Buyers are stalling. Developers are freezing. And resale homes are being left behind.

Why Are Buyers Suddenly Backing Off?

We’re seeing it firsthand: Buyers who were ready to make a moe, are now hitting pause. Think about it—if a $1,000,000 new townhome in Clayton Heights suddenly saves you $50,000 in G.S.T, wouldn’t you wait?

That’s not just furniture money. That’s mortgage-changing, lifestyle-altering cash.

And this isn’t happening in theory. Homes in Surrey and White Rock are already sitting longer. Agents are reporting zero showings. Buyer hesitation is turning into a full-on freeze.

Developers Are Hesitating—But Not for the Reason You Think

Most people assume GST is the reason developers aren’t building. It’s not. The real problem is math:

• Construction costs have surged 30% or more
• Interest rates on development loans have more than doubled!
• Profit margins have disappeared

Even with a tax break, many builders simply can’t make the numbers work—especially in higher-cost areas like South Surrey.

Resale Homes? They’re in Trouble.

Here’s where it gets ugly.

Imagine two nearly identical homes in Grandview Heights. One’s a 1-year-old resale. The other’s a brand-new build.

Thanks to current policy, the new build already skips the Property Transfer Tax (on homes under $1,100,000). If the GST is removed too? That’s a $65,000 gap—for a nearly identical product.

Which home do you think buyers will pick?

You guess it… The new one!

The Unfair Price Gap Created by Policy

This isn’t about quality. It’s about tax breaks that distort the market. A well-renovated resale with great finishes and a larger lot could still lose out to a smaller, new construction home… simply because it’s cheaper on paper.

The result? Resale sellers will have no choice but to cut asking prices—potentially wiping out years of built-up equity just to compete.

What This Means for Surrey, White Rock, and BC Homeowners

If you live in Clayton Heights, Fleetwood, or South Surrey, and your home is near new construction, pay attention. Resale values could dip 5–10% as buyers flock to tax-free new builds.

And if you’re planning to sell? You may need to adjust your expectations—fast.

The Bottom Line: Who Wins and Who Loses?

If you’re buying a new home under $1,100,000, you could come out on top. If you’re selling a resale, especially in areas with ongoing development—you might be in for a rough ride.

This isn’t just policy. It’s market manipulation.

And it’s reshaping how real estate works in BC.

What Should You Do Next?

✅ If you’re buying—understand the true timing of GST changes and how they’ll affect pricing.
✅ If you’re selling—talk to an expert about positioning your home before you lose your competitive edge.
✅ And if you’re just watching the market—don’t wait until it’s too late to react.

What if I have any questions about moving to Surrey or White Rock, BC?

Selecting an excellent real estate professional is key to a successful home purchase. The Germyn Group, with our deep understanding of South Surrey/White Rock and its real estate dynamics, is committed to guiding you every step of the way.

We invite you to book a consultation with us. During our meeting, we’ll discuss your needs, preferences, and any questions you might have about the real estate market.

As you embark on this exciting journey, remember that the right home is more than just a property; it’s a foundation for your future. With the Germyn Group by your side, let’s make your dream of homeownership a beautiful reality.