The Design District 41.Canada leads the world in housing vacancy! According to a report released by the World Economic Cooperation and Development (OECD) on October 25th local time, there are a total of 426 million suites in OECD countries, of which 42 million are idle.Please Visit: The Design District 41 to Get Your VVIP Registration Today!
Among them, Canada is one of the developed countries with the largest number of vacant houses and the highest proportion.
Statistics show that there are a total of 15.41 million homes in Canada, of which 1.34 million are vacant, meaning that owners do not live or rent to others.
At the top of the list is Canada’s “good” brother, the United States, with a vacancy rate as high as 11.1%, that is, 15.55 million of the 139.68 million homes in the United States are vacant! 2.4 percentage points higher than Canada’s vacancy rate of 8.7%.
The OECD is not the kind of agency to kill or bury, and the reasons are given after the release of the data.
According to the OECD, “many investors around the world buy homes in Canada and the United States for the same purpose as gold.”
Data show that from 2016 to 2019, one out of every 12 homes built in Canada became vacant, while 1.34 million of the total vacancy is equivalent to Canada’s total housing supply for six years. In theory, if all vacant houses were open for occupants, Canada could not build a new house for six years.
Although the vacancy rate in Canada does not seem to be as high as that in the United States, the average house price in Canada is dozens of blocks higher than that in the United States. Take the neighboring BC Greater Vancouver area and the Greater Seattle area of Washington State as an example, the price of a home in Greater Vancouver is roughly double that of Greater Seattle for the same level of construction in the same area.
Canadian media represented by the Globe and Mail have always believed that today’s Canadian real estate market is full of Chinese capital, whether on the west coast or the east coast. Because:
1. Canada can buy a house anonymously.
2. The holding cost of Canadian housing is too low.
The OECD also believes that Canada is an ideal country for housing hoarding because buyers are allowed to exist in the form of legal entities such as trusts and offshore companies in most parts of Canada.
For example, the boss of an A-share listed company registering a 123456789 company in the Cayman Islands can spend hundreds of millions on apartments in Toronto. Then it is difficult for either the Canadian government or the Chinese government to find out that the person who actually controls these properties is a Chinese entrepreneur.
Of course, this phenomenon is even more bizarre in the narrative context of Canadian media.
They prefer to combine drug trafficking, money laundering, gambling and buying a house, describing a dark path for Chinese capital to rise in Canada.
In BC province, which has the highest proportion of ethnic Chinese residents, for example, Chinese buyers have become the main scapegoats for high local house prices.
Even during the epidemic, when it was impossible for Chinese buyers to enter the country this year, the Canadian media did not forget to play up the story of Chinese hoarding Canadian homes.
In Toronto alone, C $28.5 billion in home loans were offered to buyers who could not identify the actual controller from 2008 to 2018, according to Transparency International.
The OECD believes that most of the money has been lent to unidentified money launderers.
The OECD also believes that the Canadian government does not want to delve into the source of these housing funds, nor does it want to check the flow of funds for these property sales. It is enough for them to ensure that the funds remain in Canada.
The OECD also points out that the average annual cost of ownership of Canadian homes is less than 1%, while mortgage rates are less than 2%, half the annualized rate of inflation and turning.
So you have to be an idiot not to own an asset like Canadian housing. (You would have to be an idiot not to hold vacant property with this setup).
The editor felt that the OECD released an advertisement for Canadian real estate, calling on investors from all over the world to test the waters of the Canadian real estate market.
In addition, there is no estate tax in Canada, and even if the holder dies accidentally, his family does not have to pay any fees. At most, the value-added part is paid a little profits tax.
