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Residential construction in Vancouver (and the rest of British Colombia) could benefit from the province's change to harmonized sales tax (HST).

In an effort to help British Columbia's home-construction sector, the provincial government is offering help with the harmonized sales tax (HST).

The previous maximum boundary where the tax rebate applies was $400,000. However, this has been raised to $525,000, which increases the highest rebate on newly purchased houses above the threshold from $20,000 to $26,250.

The rebate will not be used against pre-sale homes where buyers signed contracts to purchase a house prior to mid-November. Buyers of new homes will get the additional rebate on the HST, which will be charged on purchases starting July 1.

According to Finance Minister Colin Hansen, "This increase will move the threshold to above the average new-home price in the province. It will be the highest such rebate in Canada."

In related news, the Vancouver Regional Construction Association (VRCA) is predicting a more positive 2010 and 2011 climate, thanks to better market conditions continually sparking both the residential and non-residential markets.

"While there may be some continued volatility ahead, the outlook for the construction industry is improving," said VRCA President Keith Sashaw.