Surrey Takes Steps to Support Housing Development Amid Challenges

Strategic Insights -

Surrey is taking proactive measures to mitigate the significant challenges in the construction of new housing. The city is keeping development cost charges (DCCs) stable, following the provincial government's amendments to DCC regulations, which will allow developers to pay these charges on an instalment basis. This move has been welcomed by housing industry leaders, who believe it will enable them to proceed with new projects more quickly. Meanwhile, DCC costs charged by Metro Vancouver have increased, and the province has given projects that were in stream as of March 22, 2024 a break, allowing them to pay lower rates if they receive a building permit by March 22, 2026.

Key Takeaways:

  • Surrey has taken steps to maintain stable DCC rates, setting them back to 2023 levels, with a "net zero increase" for developers.
  • The provincial government amended DCC regulations, allowing for instalment payments, with 25% due at the subdivision or building permit level and the remainder due in four years or at the occupancy permit level.
  • Housing industry leaders praise the move, stating it will free up capital and enable them to proceed with new projects more quickly.
  • DCCs can be paid by buyers, who ultimately pay these charges, designed to provide municipalities with funds for infrastructure required by new growth.
  • The buyers of new units pay the DCCs, which are a significant factor in high housing prices.
  • DCCs charged by Metro Vancouver to fund regional sewer and water projects have increased.
  • The province has given projects that were in stream as of March 22, 2024 a break, allowing them to pay lower rates if they receive a building permit by March 22, 2026.
  • The GST on new homes valued at $1 million can now be fully rebated, but the buyer must still pay it up front as a significant upfront cost.
  • First-time home buyers who purchase a newly built home valued at $835,000 or less are exempt from the property purchase tax on the first $500,000 in value.
  • Property purchase taxes range between one and five per cent, depending on the home's value.

Statistics:

  • 25% of DCC payments are due at the subdivision or building permit level.
  • The remainder of DCC payments are due in four years or at the occupancy permit level.
  • Five percent is the GST rate on new homes.
  • $1 million is the threshold above which the GST on new homes is no longer rebated.
  • $835,000 is the threshold above which first-time home buyers are exempt from the property purchase tax on the first $500,000 in value.
  • One to five percent are the property purchase tax rates, depending on the home's value.

Sources:

  • Peace Arch News, 2025