cielo condos 楼花.Speculate on Canadian house prices? In recent months, the average price of overseas purchases in the Toronto housing market is nearly 50% higher than that of locals, which strongly confirms this.Please Visit: cielo condos 楼花 to Get Your VVIP Registration Today!
Data show that in the four months after Ontario introduced a 15 per cent overseas buyer tax in April last year, the average transaction price for overseas buyers was as high as C $977611, 48.2 per cent higher than the average price of C $659470 for local residents, excluding the 15 per cent overseas buyer tax. The data also show that 70.6% of overseas buyers who bought houses in Toronto in the same period were Chinese, followed by Americans, accounting for 4.6%, and followed by Indians, accounting for 3.6%.
Data from the BC government also show that the average transaction price of overseas buyers in the greater temperate zone is also much higher than that of locals, with an average price of C $1065444 for overseas buyers in October, 11.1% higher than the average price of C $958701 for locals. The price difference between the two is smaller than that of Toronto.
Experts say that in the absence of comprehensive data and a unified economic model, it is difficult to say that house prices have been pushed up by the influx of hot money from overseas. But a 2000 US study of overseas buyers in several cities found that every 1 percentage point increase in the proportion of overseas buyers would lead to a 1.9 per cent rise in house prices in the coming year.
Ripple effect inflates house prices.
The real estate industry has long opposed a tax on overseas buyers, insisting that overseas buyers account for only a small number of overseas buyers in the Toronto housing market and that prices are rising too fast because of tight supply. Benjamin Tal, deputy chief economist at Daiyin, believes that tight housing supply is on the one hand, and overseas buyers are also a key reason for soaring house prices, especially in the city center.