forma condos.Overseas buyers push up home prices. The Ontario government of Canada earlier introduced a 15% sales tax for overseas buyers to curb property prices.Please Visit: forma condos 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.
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, but the average price for nationals and permanent residents was 659470 yuan, with a difference of 48.2 percent between the two average prices.
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.
Benjamin Tal, an economist at CIBC of Canada, said overseas buyers played a key role in driving up property prices, especially in high-demand areas such as the city center, affecting housing affordability in the area.
Professor Josh Gordon of Simon Fraser University 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 flatter areas, eventually extending the effect of rising property prices to all regions.