Kindred condo mississauga. Overseas buyers buy houses in Toronto
Kindred condo mississauga. Overseas buyers buy houses in Toronto. The Ontario government introduced a 15% overseas buyer sales tax last year to curb property prices.Please Visit: Kindred condo mississauga to Get Your VVIP Registration Today!
But the latest government data show that the prices of overseas buyers in Toronto are nearly half higher than those of locals, while Chinese buyers account for more than 70 per cent of overseas buyers, and some experts admit that overseas investors are the main reason for pushing up domestic property prices.
According to undisclosed government data obtained through the Freedom of Information Act, in the four months after the Ontario government introduced a “hot move” for overseas buyers’ tax, the average price for non-citizens to buy a house in most districts was 977611 yuan. However, the average house price for nationals and permanent residents is 659470 yuan, and the difference between the two average prices is 48.2%.
On the other hand, according to a government survey on the nationality of overseas buyers, the vast majority came from China, accounting for 70.6%, followed by the United States, accounting for 4.6%, while India ranked third, accounting for 3.6%.
British Columbia also shows that overseas buyers are more expensive to buy houses. According to BC government data, the average price for overseas buyers is 1065444 yuan, while the average price for locals is 958701 yuan. The difference between the two average prices is 11.1 percent.
“overseas buyers are the key to pushing up property prices,” said Benjamin Tal, an economist at (CIBC) of Canada’s Imperial Commercial Bank. Overseas buyers played a key role in pushing up property prices, especially in high-demand areas such as the city center, affecting housing affordability in the area.
Professor (Simon Fraser University) Josh Gordon of Simon Fraser University, who specializes in property prices in Toronto and Vancouver, says overseas buyers trigger a so-called ripple effect that drives up the prices of all properties. Wealthy overseas buyers usually like to buy luxury homes, and local buyers cannot afford it, so they have no choice but to move to cheaper areas, eventually extending the effect of rising property prices to all regions.
“low interest rates are the reason for the rise in property prices.”
After Canadian mortgage and housing company (CMHC) and Statistics Canada jointly released statistics on residential property ownership by non-residents across the country, Luo Xuexin, CEO of Juwai.com, which promotes buildings in major cities around the world, claimed through the local media that overseas buyers were not the problem in the Canadian property market, and the relevant views were concerned by local scholars. In an exclusive interview with Sing Tao Daily, Luo Xuexin still claimed that low lending rates were the main reason for the rise in property prices, and that even if the central bank raised interest rates, Chinese buyers would enter the market.
Describing overseas buyers of Canadian properties as scarecrows and in a country that refuses to accept that cheap lending rates for local investors are the main cause of rising property prices, she claims that the basic truth of the property market is that low lending rates push up prices. She also claimed that the solution to the property affordability crisis was to make local investors pay higher lending rates and pay more down payments for each investment property purchased.
On the other hand, Luo Xuexin claimed that the existence of non-resident buyers would benefit first-time home buyers because non-resident buyers prefer new properties, and when they buy uncompleted flats, developers will be protected by the construction cost.