Daniels MPV2.Overseas buyers seriously affect house prices. Although overseas buyers account for only a small portion of the Canadian real estate market, most buyers in Toronto, Vancouver and Montreal still believe that overseas buyers have a serious impact on local prices.Please Visit: Daniels MPV2 to Get Your VVIP Registration Today!
The Canadian Mortgage and Housing Corporation (Canada Mortgage and Housing Corp., or CMHC) released a set of data: 68 per cent of Vancouver residents, 48 per cent of Toronto residents and 42 per cent of Montreal residents said higher prices by overseas buyers had a serious impact on the housing market.
The results of the survey are significantly compared with the data of overseas owners released by Statistics Canada. According to statistics, only 4.8% of properties in Vancouver are owned by overseas owners and 3.4% in Toronto.
The public’s perception of overseas buyers’ share of property is a far cry from the actual share, which is crucial to discussing rising house prices, CMHC said in the report.
Crown Corporation, a federal state-owned company, says that in Vancouver, overseas investors have more influence on the market than supply constraints and demand, but in Toronto, the influence of overseas investors is in line with the market relationship.
Compared with, the trading volume dropped sharply by 96.3%.
On the price side, according to the real-time tracking MLS system of Canadian real estate agency Zolo, as of Aug. 16, the average house price in Vancouver was C $1.1 million per unit, down 20.7% in one month; the average price of a house in North temperature was C $1 million, down 17.3%; and the average price of a house in Richmond was C $779000 per unit, down 17.6% from 28 days ago.
According to an official survey in BC province, a total of 19383 residential property transactions took place in the province in the five weeks of June 10 and July 14, of which overseas buyers accounted for 1276, or about 6.6 per cent. However, the Dawen area, including the metropolitan area of Vancouver, accounted for 49.7 per cent of transactions in the province in the past five weeks, with overseas buyers accounting for 73.3 per cent. From this point of view, the rapid rise in house prices in Vancouver in the short term is mainly the result of speculation by a small number of overseas buyers.
In July, BC province released its first “overseas buyer data” on the property market. Between June 10 and 29, investors from Chinese mainland accounted for 76.6 per cent of total home purchases by foreign investors, according to the data.
According to media reports, Peter Rutledge, a financial analyst at the National Bank of Canada, said in a report that Chinese buyers spent C $12.7 billion (US $9.6 billion) on property in Vancouver last year, accounting for 33 per cent of total local property sales.