m city 5 condos prices. Canadian house price avalanche? The current round of global house price rise is not the result of healthy economic development, but the result of central banks printing money and excess funds flowing around the world. Such high house prices cannot afford the blow of tax shorting and strict monetary policy.Please Visit: m city 5 condos prices to Get Your VVIP Registration Today!
In order to resist the continuous entry of foreign currencies and give its people a stable housing environment, Canada has introduced a new tax policy, which is equivalent to the government taking the initiative to short the property market. At the end of July, the Ministry of finance of BC Province announced new regulations that an additional 15% property transfer tax will be levied on overseas real estate investors from August 2. The Greater Vancouver region implemented is the region with the largest number of foreign investors in BC Province and even the whole of Canada. According to the first “overseas buyers data” released by the province, the number of investors from Chinese mainland in from June 10th to 29th accounted for 76.6% of the total amount of foreign buyers.
After the implementation of the new deal, the tide of Chinese home buyers has ebbed and the BC real estate market has been swimming naked.
According to MLS data, Brent Eilers, a real estate broker, only three houses were sold in West Vancouver from August 1 to 14, compared with 52 in the same period last year, with a year-on-year decrease of 94%. Sales plunged 96% in Richmond and 95% in North benabi. On average, property sales in Greater Vancouver fell 85% in the first two weeks of August. House prices have eased. Canadian real estate broker Zolo said Vancouver has fallen 20.7% in the past 28 days and 24.5% in the past three months. It’s no exaggeration to say it’s an avalanche.
With the rise of global currency tide and asset tide, Chinese immigrants and Chinese buyers have become an important force affecting global real estate. The stability of real estate has created the illusion of economic and consumption recovery. In fact, since 2008, the global economy has been a paper tiger, which can be broken immediately.
As a large resource country, the downturn of manufacturing industry in the United States and China indicates the downturn prospect of mining industry in Canada, Australia and other countries. According to the website of the Ministry of Commerce, on July 21, the Conference Board of Canada released a summer outlook report, which said that Canada’s annual economic growth rate is expected to be only 1.4%, lower than the 1.6% predicted in the spring report. The report points out that business investment is still declining, becoming the biggest weakness in the economic field. Canada’s investment in oil and gas decreased by about $19 billion last year.
Not only that, consumption is also very low. Retail sales in Canada fell 0.1% in June from the previous month, far less than the 0.5% growth expected by economists. In addition, the annual growth rate of Canada’s CPI slowed to 1.3% in July, lower than the 1.5% growth rate last month, and the bleak prospect of deflation is waving to Canada.
At this point, Canada can not advance or retreat, withdraw from the new deal, lose credit, increase the real estate bubble, and the domestic public sentiment is indignant, leading to populist sentiment. If the new deal is not withdrawn, once deflation comes true, it will be a heavy blow to the Canadian economy.