Vincent Condo . Overseas buyer tax 20%? The real estate sector believes that it will only have a short-term psychological impact on the measures introduced by the (NDP) government of the New Democratic Party of British Columbia on Tuesday to crack down on real estate speculation.Please Visit: Vincent Condo to Get Your VVIP Registration Today!
It will not deal a heavy blow to the property market, but some scholars have pointed out that the speculative tax introduced by the provincial government may prompt some overseas buyers to release their local properties, thus making it more affordable in the middle and lower prices market.
The anti-speculation measures announced by the provincial government on Tuesday include an increase in the tax on overseas buyers from 15 per cent to 20 per cent from Wednesday, the extension of the applicable area from the warm to places such as the Fisha River Valley and the city of Victoria, and plans to introduce a speculative tax (Speculation Tax) this autumn.
Tan Qinghua, president of the British Columbia Chinese Real Estate Professional Association, said that the measures introduced by the provincial government may have a deterrent effect on the speculation of houses worth more than 3 million yuan, but it will only have a short-term psychological impact on low-and middle-priced housing, because the main buyers of these low-and middle-priced houses are local residents, which will not have much impact in the long run. On the whole, he thinks that the measures taken by the provincial government this time can make the property market develop in a healthy direction.
However, Tan Qinghua said that one of the reasons for the high property prices was high land prices and insufficient supply, but the provincial budget did not propose solutions, such as encouraging the municipal government to speed up the approval of building permits. In addition, he pointed out that the rapid rise in property prices was partly due to the sale and purchase of uncompleted flats. He thought that the provincial government should control the sale and purchase of uncompleted flats so as to keep the increase in property prices stable.
Muir (Cameron Muir), chief economist at (BCREA) of BC Real Estate Association, said that the measures introduced by the provincial government will enable the provincial government to obtain tax revenue, but will not have a significant impact on the real estate market, (demonstrable impact). He considered that the main reason for the rise in housing prices was the failure to increase the supply of housing in the market at an appropriate time.