UNION City Markham.House prices soared. The Canadian government announced today that foreigners will be banned from buying non-self-occupied properties in Canada for the next two years, aimed at cooling the overheated real estate market.Please Visit: UNION City Markham to Get Your VVIP Registration Today!
Canadian Deputy Prime Minister and Finance Minister Cristina Freeland announced this year’s federal budget on the same day, focusing on dealing with tight housing supply, insufficient housing stock and soaring house prices.
In his budget, Freeland mentioned a number of measures to curb real estate speculation and demand, including that foreigners are not allowed to buy houses in Canada for the next two years, and sellers who buy houses in less than a year will face high taxes and fees.
A man wearing a mask arrives at a COVID-19 vaccination site in Missisoga, Ontario, Canada, Feb. 4.
According to the Canadian Television Network, the above two measures do not apply to permanent residents, foreign workers and foreign students, and foreigners’ purchase of long-term self-occupied property is not restricted by the purchase ban.
Canadian house prices rose by more than 20 per cent last year, and rents also soared. The government is under pressure to cool house prices.
According to the new budget, the Canadian government is also prepared to invest billions of Canadian dollars to increase housing supply, and plans to open a “first suite tax-free savings account” to help more Canadians become “homeowners.”
In addition to food and energy, changes in housing market prices brought about by inflation and higher interest rates also affect the mood of local residents. Two years before the COVID-19 outbreak, house prices in Canada rose to an all-time high, but since the Bank of Canada began to raise interest rates sharply, the situation has begun to reverse. Real estate prices have fallen for nearly four months in a row, with benchmark prices falling 1.7 per cent to C $789600 in July, according to data released by the Canadian Real Estate Association on Monday. Sales also continued to decline, down 29.3% from the same period last year and 5.3% from the previous month.
House prices in Ontario fell the most. In Ontario, house prices fell in almost all regions in July. The biggest decline was in the Huron-Perth area on the banks of Lake Huron, where house prices fell 6 per cent that month, while prices in Mississauga on the outskirts of Toronto fell 5.3 per cent.
With the exception of Ontario, most other regions have reported varying degrees of decline in house prices. The weakness of the real estate market is spreading across Canada. By contrast, prices in the rental market still seem to remain high. Several respondents in Canada said rent prices had risen significantly. Xiao Zhou told reporters that the school will resume offline teaching in September, and when renting, it is obvious that the rent in these two months is much higher than before: “the rent in our city center has increased by about 10% and 15%.”
Yesterday’s inflation figures also confirmed the feelings of residents. Data show that annual housing costs in Canada rose 7 per cent in July, up 0.4 per cent from the previous month, and national rents rose 4.9 per cent year-on-year. Among them, Prince Edward Island had the largest increase of 9.4%, followed by Nova Scotia and Ontario.