Dr. Hedy Fry, an 11-term Liberal MP representing downtown Vancouver, is defending a new multibillion-dollar subsidy for Metro Vancouver's sagging condo sector, arguing it is logical for the government to purchase thousands of empty condos from developers who cannot find buyers.
Subsidy Details Announced by Prime Minister Carney
Prime Minister Mark Carney announced last week that the federal and B.C. governments would jointly contribute $3.2 billion to buy approximately 2,200 unsold condos in the Vancouver area and resell them as affordable housing units. Carney stated he hoped the subsidy would unfreeze a “stuck” condo sector, where prices are too low for developers to sell and still too high for consumers to afford.
Fry's Defense Against Criticism
Critics, including Opposition Conservative Leader Pierre Poilievre, have panned the subsidy as a “bail out” for politically connected developers, calling on those developers to sell at a loss. However, Fry scoffed at the suggestion that market forces would eventually drive condo prices down to an affordable level for buyers. “In Vancouver?! You’re joking!” said Fry. “I’ve lived in Vancouver for 50 years (and) I have never seen prices going down.”
Fry added that while she understood the sticker shock associated with the subsidy's price tag, its size was appropriate for Vancouver's real estate market. “$3 billion could buy you a cup of coffee in Vancouver,” said Fry. “I think it’s ridiculous to even consider that this is a bail out of rich people.”
Concerns Over Housing Minister's Ties
Fry also addressed concerns about federal Housing Minister Gregor Robertson, a former mayor of Vancouver, managing the flow of subsidies to developers he had previously worked with in municipal circles. “Mayors all deal with developers. That’s what mayors do,” said Fry. “To make it sound like Gregor Robertson is making money for his friends, you can spin anything the way you want to spin it.”
Vancouver’s so-called “condo king” Bob Rennie was a major donor to Robertson during his time at city hall, notably organizing a $25,000-a-plate lunch in support of his re-election in 2014. Fry said that Robertson’s personal history with Rennie is irrelevant. “It’s not about Bob Rennie, it’s about all kinds of people who have empty condos sitting there, and people who are waiting to afford it. And if the government… can get a fire sale going, I don’t understand what’s bad about that,” said Fry.
Constituent Feedback and Caucus Division
Fry said she has only received positive feedback from her constituents about the condo subsidy so far. However, not all members of the Liberals’ B.C. caucus share the same experience, indicating some division within the party on the issue.
