grand festival condos.Is the Canadian Toronto property market bubble about to burst? Canada’s Toronto property market, one of the hottest property markets in the world, fell in volume and prices in May, prompting public opinion that the biggest real estate bubble in Canadian history could start to burst.Please Visit: grand festival condos to Get Your VVIP Registration Today!
Data released by the Toronto Real Estate Board on the 5th local time showed that real estate in Toronto fell in volume and prices in May, with the average selling price of all types of houses at C $863910 (C $1), down 6.2% from C $920791 in April. Although the number of houses available for sale increased by 19%, the volume of transactions fell 12% month-on-month.
In fact, since late April, various jokes about the fall in Canadian house prices, such as “going to the subprime crisis” and “waiting for a house to be tied up”, have spread in the “moments” of Chinese Canadian Wechat. This makes Chinese “home buyers” who are already uneasy by the Canadian government’s previous real estate regulation policy can not help but feel frightened.
In march, the Toronto property market rose by 30% in a single month, the highest in history. In order to curb the rapid rise in house prices, the Ontario government, where Toronto is located, announced a series of measures to cool the housing market in April. One of the rules is that Ontario will impose a 15% tax on home buyers who are not Canadian nationals or permanent residents and who do not live in Ontario homes.
The Ontario Securities Commission accused Home Capital Group, Canada’s largest non-bank mortgage supplier, of misleading investors into applying for home loans without knowing the conditions. After the news, the company’s stock price plummeted, which in turn triggered a chain reaction of banks, mortgage companies and other surrounding stocks, making the “subprime crisis” more sensational. On May 25th, Royal Bank of Canada, a commercial bank of Canada, made it clear that the “Home Capital crisis” did not constitute a systemic risk to Canadian finance. Facts have proved that the “subprime crisis” is likely to be a false alarm.
At present, the mainstream type of housing in the Toronto property market is 300 square meters of single-family villas, with prices between C $1.5 million and C $2.5 million. Ten years ago, the price of this type of house was C $600000-C $900000.
Chi Xiangfeng said, “since 2007, Toronto house prices have risen by an average of 7% a year, which is still within the normal range.” But this year, house prices have accumulated an increase of 30% in a short period of time, which is very rare and abnormal in western countries, which can be said to have formed a local bubble. ” However, Chi Xiangfeng believes that the simultaneous fall in volume and prices in the Toronto property market in May is only the effect of policy regulation and control. In fact, house prices in Toronto fell month-on-month in May, but they are still up 15% from May last year. The price of the detached house (single-family villa) he bought in 2012 has indeed doubled. House prices are rising faster than we expected. Luxury homes with a total price of C $1 million were out of reach to ordinary people in the past, but now townhouses have risen to this price level.
“there is no panic among home buyers in my moments. People are not bearish on the Toronto property market. They just hope that it will not rise too fast.” Mr. Tian believes that after more than a month of regulation and control, the property market has returned to the buyer’s market, the original phenomenon of multiple people snapping up a flat no longer exists.
“the Ontario government began to regulate and control the property market at the beginning of the bubble, and the overheating of the property market was restrained in time, which is of great significance to the healthy development of the Toronto property market in the future.” The relatively limited land available for development in Toronto’s urban planning, coupled with the favor of a large amount of overseas capital, a variety of factors have pushed up house prices in Toronto. Chi Xiangfeng said, “the property market is multifaceted, according to the May one-month data that the bubble will burst, more one-sided.”