A federal investigation into how 15,000 Greater Vancouver realtors structure their commissions could fundamentally alter the economics of buying and selling property across Canada. The Competition Bureau has secured a court order compelling Greater Vancouver Realtors to disclose whether rules requiring sellers' agents to compensate buyers' agents suppress competition and encourage steering toward higher-commission listings.

British Columbia's 2026 provincial budget delivers a mixed bag for real estate stakeholders. Property tax deferment interest rates jump from 1.2% to 3.5%, PST expands to commercial real estate services starting October 2026, and the Speculation and Vacancy Tax rises to 4% for foreign owners. The one bright spot: purpose-built rental exemptions now cover buildings with as few as four units, a meaningful incentive for rental construction.

The residential market continues its decisive shift toward buyers, with BC's Interior posting nearly 50 weeks of inventory and a new-listings-to-sales ratio holding at 3:1. Real-adjusted Canadian house prices have fallen 5% year-over-year according to the Bank for International Settlements, placing Canada's decline among the steepest of major economies. A downtown Vancouver condo in Two Harbour Green sold for $4.2 million, below its 2009 purchase price, underscoring the depth of correction in the luxury segment.

Commercial real estate presents a contrarian opportunity as downtown Vancouver's 3.6% vacancy rate drives increasingly generous tenant incentives. With no new office towers under construction and Amazon and Lululemon locking in major leases, savvy investors are positioning for a recovery that 42% of industry professionals expect to begin this year.

Feb 21 - 27, 2026

Weekly Real Estate Review

for REALTORS®

Here's why the Federal Competition Bureau is investigating Greater Vancouver Realtors' commission rules

The federal Competition Bureau has been investigating for two years whether rules requiring the seller's agent to provide compensation to the buyer's agent may reduce competition among real estate agents in Canada. A recent court order allowed the bureau to gather information from Greater Vancouver Realtors, one of the country's largest boards representing 15,000 agents, to determine if the national association's rules enable abuse of dominance by discouraging alternative pricing models and encouraging 'steering' toward higher-commission listings. No determination has been made yet, but the investigation could lead to significant changes in how real estate commissions are structured across Canada. (Source: Vancouver Sun)

B.C. Budget 2026: Real Estate Highlights

British Columbia's 2026 budget introduces several changes affecting real estate, including increases to the property tax deferment interest rate from 1.2% to 3.5% and higher additional school tax rates for properties valued over $3 million. The budget also expands the Provincial Sales Tax to professional services including commercial real estate services effective October 2026, while increasing the Speculation and Vacancy Tax rate for foreign owners from 3% to 4%. On the positive side, the purpose-built rental housing exemption from the additional school tax has been expanded from 100+ units to all purpose-built rental buildings with four or more units, potentially encouraging more rental construction. (Source: Fasken)

Greater Vancouver Realtors targeted in Competition Bureau investigation

The federal Competition Bureau has obtained a court order from the Federal Court compelling Greater Vancouver Realtors (GVR), one of Canada's largest real estate boards with 15,000 members, to provide information about its commission rules as part of an ongoing investigation. The bureau is examining whether rules requiring the seller's agent to offer compensation to the buyer's agent discourage competition among agents and encourage 'steering' clients toward higher-commission listings. GVR CEO Jeff King stated the organization is fully cooperating with the investigation, which could have significant implications for how real estate commissions are structured across Canada. (Source: Real Estate Magazine)

What the latest B.C. real estate sales data reveals

B.C.'s housing market continues to shift in favour of buyers, with nearly 50 weeks of inventory available across the Interior and a new-listings-to-sales ratio of 3:1 for the third week of February. The mid-market segment between $500,000 and $1 million remains the most active, accounting for over half of both new listings and sales, while luxury properties above $2 million are seeing very little movement. Compared to September 2025, conditions have improved somewhat with active listings dropping from over 10,000 to about 7,095 and the inventory supply falling from 73 weeks, though the market still firmly favours purchasers. The data underscores that realistic pricing remains the key factor in achieving a successful sale in today's environment.

Vancouver’s commercial real estate vacancy rate remains high amid hybrid work

Downtown Vancouver has Canada's third-highest commercial vacancy rate at 3.6%, behind Montreal at 5.2% and Calgary at 3.8%, according to the 2026 Royal LePage Commercial Real Estate Report. The softness stems from companies maintaining hybrid work arrangements and reducing their physical footprints, with larger office buildings feeling the greatest pressure. To attract tenants, downtown landlords are increasingly offering incentives such as discounted rents and rent-free periods, though office markets outside the city core have shown more stable rental growth. Looking ahead, 42% of survey respondents expect vacancy rates to decrease this year, with optimism fuelled in part by the federal government's expanded return-to-office mandate requiring public servants on-site four to five days per week.

Tenant incentives rise in downtown Vancouver office market

Downtown Vancouver's office market is seeing landlords offer increasingly generous tenant incentives including lower rents, rent-free periods, and flexible lease terms as companies embrace hybrid work and seek smaller footprints. While leased vacancy rates for premium buildings dipped slightly in 2025, asking rents declined across most commercial properties. No new office towers are currently under construction following the 2023-2024 completion of buildings like The Stack and Bosa Waterfront Centre, creating a flight to quality where modern spaces attract tenants while older buildings struggle. Major lease deals include Amazon fully pre-leasing the 1.1-million-square-foot The Post and Lululemon taking 300,000 square feet at Pacific Centre, signalling that current conditions present a compelling opportunity for tenants to secure high-quality space.

Richmond buys rental building for $70M from Townline, Peterson

The City of Richmond has acquired two rental buildings at 10820 and 10880 No. 5 Road for $70.25 million from developers Townline Homes and Peterson Group, adding 163 rental units and retail space to its housing portfolio. The purchase price exceeds the BC Assessment value of $65.6 million, reflecting a growing trend of governments becoming residential landlords to preserve affordable housing stock. This acquisition follows similar moves by BC Housing, which recently purchased rental buildings in Mission and Vancouver, signalling an increasing role for public entities in directly owning and managing rental housing in the Metro Vancouver region. (Source: Richmond News)

Vancouver’s multiplex market matures after post-zoning surge

Vancouver's multiplex market is maturing after an initial surge following the implementation of Bill 44 small-scale multi-unit housing legislation, with only 46 multiplex sales totalling $114 million in 2025 compared to 124 sales worth $303 million in 2024. The market is expected to stabilize at 40 to 50 transactions per year going forward, with about 15% of buyers opting for only two-storey builds and many facing financing challenges for smaller projects. Notably, roughly half of Vancouver properties would yield less than 15% profit for multiplex development, suggesting the economic viability of these projects remains limited in many areas despite the zoning changes. (Source: Business in Vancouver)

Rents falling in B.C. as demographic changes curb rental demand, says report

Average unfurnished one-bedroom rents in British Columbia fell 5.3% year-over-year to $2,152 in 2025, driven largely by a significant population decline as BC posted negative population growth for the first time since 2012. The province saw 19,628 people emigrate (up 32%) and a net loss of 48,943 non-permanent residents, reducing demand pressure on the rental market. However, housing starts also fell 5% during the same period, raising concerns that the current rent relief could set the stage for a supply shortage in two to four years when demand potentially rebounds. (Source: Business in Vancouver)

Once-jailed B.C. developer fined $75K for ‘predatory and deceptive’ condo fraud

The B.C. Financial Services Authority has fined developer Mark Chandler and his company a combined $75,000, the maximum penalty allowed at the time, for a fraudulent scheme involving the 92-unit Murrayville House condo project in Langley Township. Investigators found the developer entered into 151 pre-sale contracts for 91 units, selling some properties multiple times, and misappropriated over $10 million in buyer deposits for personal use rather than delivering funds to authorized trust holders. Chandler was previously extradited to the U.S. in 2017 to serve six years for unrelated fraud and was deported back to Canada in February 2025. The regulator noted that under current legislation, similar violations would now face penalties up to $250,000 for individuals and $500,000 for corporations.

Lawsuit between Vancouver developer and former VP reveals financial strains on big projects

A former vice-president of Vancouver developer Westbank Project Corp has filed a civil lawsuit claiming the company owes her $1.2 million based on an employment agreement, with court documents revealing alleged text messages from founder Ian Gillespie describing significant financial difficulties across multiple flagship projects including Senakw, Alberni, Butterfly, and Oakridge Park. The alleged texts describe unsold units, projects over budget, slow closings, and a 30% haircut on the original Senakw partnership price, painting a picture of widespread financial strain at one of Vancouver's most prominent development firms. Industry observers note these challenges are not unique to Westbank, as liquidity problems and pre-sale cancellations are widespread among developers in the current market environment. (Source: CBC News)

‘Significant rise’ in development projects seeking approval at Vancouver city hall

Vancouver city staff project 120 to 130 rezoning projects will go before council at public hearings in 2026, nearly double the 68 projects heard in 2025 and well above the 51 in 2024. The surge is driven by the approval of development-enabling plans for Broadway, Cambie, and Rupert-Renfrew corridors, along with strong market interest in housing and job space. Recent approvals include residential towers at the Army and Navy property on West Hastings and the 800-block Granville Street redevelopment. Council members credit measures such as installment payments for development cost levies and deferred community amenity contributions for making projects more financially viable, though the compressed timeline ahead of the October civic election and FIFA World Cup presents scheduling challenges.

BC developer hit with maximum fine for selling presale condos twice

Developer Mark Chandler and his numbered company have received the maximum penalties under B.C.'s real estate marketing regulations for a fraudulent scheme at Murrayville House, a 92-unit condo project in Langley where presale units were sold to multiple buyers simultaneously. Over $10 million in buyer deposits were mishandled, with funds directed to Chandler personally rather than held in trust as legally required. Two real estate agents involved had their licences suspended for one year and received $10,000 fines each for helping resell nine already-sold units. The scheme prompted the provincial government to amend regulations in 2018, increasing maximum penalties from $25,000 to $250,000 for individuals and from $50,000 to $500,000 for corporations.

Fraser Valley Real Estate Board chair weighs in on prov. budget

The Fraser Valley Real Estate Board chair Tore Jacobsen has expressed initial concerns about the 2026 B.C. provincial budget, particularly regarding new PST additions to real estate-related services such as architecture fees, which he says will have an impact on an already struggling sector. Jacobsen noted that housing projects being put on hold or not started at all are existing problems that the new budget measures could exacerbate. The board is taking a measured approach, planning to conduct a thorough analysis of the full budget before presenting findings to provincial officials after the B.C. Real Estate Association's annual government liaison days in Victoria.

Thousands of new homes planned for downtown Surrey as development of area continues

Thousands of new homes are planned for downtown Surrey as the city's centre continues to undergo major development, with two significant projects in the pipeline that are still several years away from completion. The developments reflect Surrey's ongoing transformation into a major urban hub within Metro Vancouver, as the municipality works to build density and housing supply in its downtown core. (Source: Vancouver Sun)

Mortgage myths you need to know before renewal

Mortgage and real estate expert Victor Tran from Rates.ca discusses what Canadian homeowners can expect when their mortgage comes up for renewal, addressing common misconceptions in a video segment with the Financial Post. The discussion comes at a time when many Canadians face significant mortgage renewals amid a shifting interest rate environment. (Source: Financial Post)

As vacancies rise, commercial real estate investors are looking at the bigger picture

Downtown Vancouver's commercial real estate market is experiencing notable shifts, with Class B office vacancy increasing 7.1% year-over-year as Class A landlords offer incentives that draw tenants away from lower-tier buildings. Industrial vacancy rates have also risen sharply, up 18.2% downtown and 19.4% outside the core, while gross industrial rents declined 7.3% in the downtown area. Despite these short-term challenges, investors view the downturn as a buying opportunity, citing Vancouver's limited supply pipeline and geographic constraints as factors that support a "very safe" long-term outlook for commercial real estate in the region. (Source: Business in Vancouver)

Major B.C. developer's financial struggles cited in text messages, court filings say

Major B.C. developer Westbank is facing financial struggles according to text messages and court filings that have emerged, raising questions about the health of one of Vancouver's most prominent real estate development firms. The details of the financial difficulties were cited in court documents, though a Westbank spokesperson has responded to the allegations. (Source: Vancouver Sun)

Mortgage Matters: Navigating the spring housing market

As the spring housing market approaches, first-time homebuyers in the Vancouver region are being advised on strategies to navigate the current market conditions and secure their first property. The guidance covers key mortgage considerations and practical steps for getting ahead in a competitive market where affordability remains a significant challenge for new buyers. (Source: Vancouver Sun)

12 buildings up to 48 storeys with 2,700 homes eyed for Surrey City Centre

Onni Group is proposing a major mixed-use redevelopment spanning nine acres in Surrey City Centre that would deliver over 2,700 new homes across 12 buildings, including seven high-rise towers reaching up to 48 storeys. The project at 10520 132 Street and 13270-13352 105A Avenue would include 321 replacement rental units at 10% below-market rates for 20 years and 2,384 new condominiums ranging from studios to three-bedroom homes. The development, located a 10-minute walk from both Surrey Central and Gateway SkyTrain stations, would also feature 24,000 square feet of ground-level retail space and seven underground parking levels with 2,724 stalls. Construction is planned across eight phases spanning 30 to 35 years, with initial building on the eastern portion expected to begin within five to 10 years.

Ottawa working with provinces to reduce developer fees, says housing minister

The federal government is in discussions with provinces to jointly fund up to $25 billion in housing infrastructure aimed at reducing development charges that add to the cost of new homes. The Build Communities Strong Fund would provide $12.2 billion matched 50-50 by provinces, while the separate Build Canada Homes program would allocate $13 billion over five years for non-market housing and modern construction methods. Led by Housing Minister Gregor Robertson, these initiatives represent Ottawa's most significant attempt to address the development cost barriers that have been identified as a key obstacle to building more affordable housing across Canada. (Source: Business in Vancouver)

B.C. property firms say $91M tax bill will jeopardize future construction projects

BC property companies controlled by developer Terry Hui are taking the federal government to court over a $91 million-plus tax bill resulting from a 12-year Canada Revenue Agency audit. Adex Securities and One West Holdings filed their case in Federal Court, claiming the audit of payments to Luxembourg corporations has caused "irreparable harm" and forced the companies to halt one to two future construction projects. The case is linked to the broader Alta Energy Luxembourg Supreme Court precedent and could have significant implications for how international corporate structures are assessed by Canadian tax authorities in the real estate sector. (Source: Vancouver is Awesome)

Downtown Vancouver condo recently sold for below 2009 sale price

A unit in downtown Vancouver's Two Harbour Green building at 1139 West Cordova Street sold for $4.2 million, not only well below its $5.18 million asking price and $5.38 million assessed value, but also less than its 2009 sale price of $4.33 million. The two-bedroom, three-bathroom unit spanning 2,667 square feet had previously sold for $5 million in 2024, representing a significant loss for the seller in just two years. The sale reflects broader market pressures on premium downtown properties, with Greater Vancouver apartment sales declining to 554 units in January 2026 from 791 in December, while active listings reached 5,375. The condo spent 48 days on the market, illustrating the challenging conditions facing luxury real estate in the current environment.

City of Surrey unveils citywide plan to support one million residents by 2050

The City of Surrey has released its draft "Surrey 2050" Official Community Plan to guide development as the municipality grows from approximately 700,000 to one million residents over the next 25 years. The plan projects housing stock increasing from about 195,000 homes in 2021 to 333,000 by 2050, with jobs growing from 212,000 to 381,000, while reducing city policies from over 600 to approximately 200. Growth will be concentrated near public transit, particularly around seven new SkyTrain stations opening in 2029 on the Expo Line Surrey-Langley extension, with eight community hubs including Surrey City Centre and Guildford anchoring planning decisions. The plan is guided by three core values of livability, affordability, and safety, and is expected to receive council approval in coming months.

Despite so much uncertainty, borrowers still flock to floating rates

Despite significant economic uncertainty driven by trade tensions and policy shifts, Canadian mortgage borrowers continue to favour floating-rate mortgages over fixed-rate options. Mortgage expert Robert McLister notes that the sharpest nationally advertised variable rate deals currently offer a 20 to 22 basis point advantage over comparable fixed rates, making them an attractive option for borrowers willing to accept some rate volatility in exchange for lower initial costs. (Source: Financial Post)

Commercial real estate activity expected to rise in 2026 amid return-to-office trends

Royal LePage's 2026 commercial real estate report forecasts a gradual recovery for Canada's office sector, with two-thirds of surveyed commercial real estate professionals expecting demand for office space to modestly increase or stay the same in 2026 as return-to-office mandates gain momentum. Among major markets, downtown Vancouver had a commercial vacancy rate of 3.6% while Greater Vancouver sat at 2.9%, both below Montreal's 5.2% and Calgary's 3.8%. The industrial sector remains one of Canada's strongest commercial asset classes despite trade-related headwinds, with 47% of those surveyed expecting occupier demand to increase, particularly in logistics-connected markets near transportation corridors and ports. (Source: Vancouver is Awesome)

Housing affordability challenges remain despite recent improvements: CMHC

A new Canada Mortgage and Housing Corporation analysis shows that while housing affordability has eased slightly since hitting historic lows in 2023, challenges remain at historically high levels and have spread beyond Toronto and Vancouver to cities like Ottawa, Montreal and Halifax. CMHC's chief economist noted that remote work during the pandemic drove labour mobility that pushed affordability pressures into previously more affordable markets. Looking ahead, CMHC says affordability challenges are likely to continue even as conditions are expected to gradually ease over time, and the agency plans to regularly update its new composite housing affordability index. (Source: Business in Vancouver)

Bryan Yu: B.C. building boom holds for now as debt burden swells

Despite economic headwinds including trade uncertainty and a weak resale housing market, B.C. building permits rose nearly 12% annually in 2025, with residential permits up 8% driven by multi-family housing and non-residential permits surging 20% on government activity including hospitals and schools. However, Central 1 chief economist Bryan Yu warns that the province's $13.3 billion deficit and rapidly climbing debt—projected to reach $189 billion by 2028-29 from under $50 billion pre-pandemic—could constrain future government spending. The debt-to-GDP ratio is expected to climb to 37%, with rising debt servicing costs potentially limiting the province's ability to fund future housing and infrastructure initiatives. (Source: Business in Vancouver)

Canada's housing market suffers largest price decline among major economies, says BIS

Canadian house prices, adjusted for inflation, fell 5% in the third quarter of 2025 compared to a year earlier, according to new data highlighting the ongoing correction in the national housing market. The decline reflects the impact of elevated interest rates and affordability challenges that have weighed on buyer demand across the country, including in major markets like Vancouver. (Source: Financial Post)

Here's why mortgage renewals may be the banks' biggest rip-off

Financial adviser Ted Rechtshaffen advises Canadian homeowners to be proactive and aggressive when negotiating their mortgage renewal rates, recommending that borrowers begin researching rates with a mortgage broker or adviser about four months before their renewal date rather than simply accepting their current lender's offer. The advice is particularly timely as many Canadians face mortgage renewals in a shifting interest rate environment where significant savings can be achieved through comparison shopping. (Source: Financial Post)

The convergence of regulatory scrutiny, fiscal tightening, and buyer-dominant conditions signals a market that rewards strategic patience and disciplined execution. Realtors who proactively advise clients on the implications of potential commission structure reforms will differentiate themselves as the Competition Bureau investigation unfolds over the coming months.

Vancouver's development pipeline tells a story of long-term confidence despite short-term headwinds. With 120 to 130 rezoning projects expected at city hall in 2026, Onni's 2,700-unit Surrey City Centre proposal advancing, and Surrey's 2050 plan targeting 333,000 homes, the region's housing supply trajectory remains firmly upward. Federal initiatives to reduce development charges through up to $25 billion in joint funding could accelerate project timelines for developers watching their margins.

Risk factors demand close attention. BC's provincial debt is projected to reach $189 billion by 2028-29, potentially constraining future infrastructure spending. Rent declines of 5.3% and negative population growth may temporarily ease affordability but could trigger a supply shortage within two to four years as housing starts simultaneously fall. The Westbank financial difficulties revealed in court filings add uncertainty to the development landscape.

For buyers, the current window of elevated inventory and motivated sellers offers pricing leverage not seen in years. For investors eyeing commercial real estate, the flight-to-quality dynamic in downtown office space creates entry points in both tenant negotiations and asset acquisition. Schedule a consultation with your MGR advisor to identify how these shifts align with your portfolio objectives.

News Sources

• (Vancouver Sun)  Here's why the Federal Competition Bureau is investigating Greater Vancouver Realtors' commission rules
• (Fasken)  B.C. Budget 2026: Real Estate Highlights
• (Real Estate Magazine Canada)  Greater Vancouver Realtors targeted in Competition Bureau investigation
• (Castanet)  What the latest B.C. real estate sales data reveals
• (CTV News)  Vancouver’s commercial real estate vacancy rate remains high amid hybrid work
• (Daily Hive Vancouver)  Tenant incentives rise in downtown Vancouver office market
• (richmond-news.com)  Richmond buys rental building for $70M from Townline, Peterson
• (Business in Vancouver)  Vancouver’s multiplex market matures after post-zoning surge
• (Business in Vancouver)  Rents falling in B.C. as demographic changes curb rental demand, says report
• (CTV News)  Once-jailed B.C. developer fined $75K for ‘predatory and deceptive’ condo fraud
• (CBC)  Lawsuit between Vancouver developer and former VP reveals financial strains on big projects
• (Business in Vancouver)  ‘Significant rise’ in development projects seeking approval at Vancouver city hall
• (The Squamish Reporter)  BC developer hit with maximum fine for selling presale condos twice
• (Surrey Now-Leader)  Fraser Valley Real Estate Board chair weighs in on prov. budget
• (Vancouver Sun)  Thousands of new homes planned for downtown Surrey as development of area continues
• (Financial Post)  Mortgage myths you need to know before renewal
• (Business in Vancouver)  As vacancies rise, commercial real estate investors are looking at the bigger picture
• (Vancouver Sun)  Major B.C. developer's financial struggles cited in text messages, court filings say
• (Vancouver Sun)  Mortgage Matters: Navigating the spring housing market
• (Daily Hive Vancouver)  12 buildings up to 48 storeys with 2,700 homes eyed for Surrey City Centre
• (Business in Vancouver)  Ottawa working with provinces to reduce developer fees, says housing minister
• (Vancouver Is Awesome)  B.C. property firms say $91M tax bill will jeopardize future construction projects
• (Daily Hive Vancouver)  Downtown Vancouver condo recently sold for below 2009 sale price
• (Daily Hive Vancouver)  City of Surrey unveils citywide plan to support one million residents by 2050
• (Financial Post)  Despite so much uncertainty, borrowers still flock to floating rates
• (Vancouver Is Awesome)  Commercial real estate activity expected to rise in 2026 amid return-to-office trends
• (Business in Vancouver)  Housing affordability challenges remain despite recent improvements: CMHC
• (Business in Vancouver)  Bryan Yu: B.C. building boom holds for now as debt burden swells
• (Financial Post)  Canada's housing market suffers largest price decline among major economies, says BIS
• (Financial Post)  Here's why mortgage renewals may be the banks' biggest rip-off

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