8 ELM downtown.Canada suppresses speculators. In order to curb the risks caused by the rapid rise in house prices, a number of economies around the world have introduced measures to restrict foreign home purchases and make it more difficult to assess housing credit, especially in economies flocked to by foreign speculators.Please Visit: 8 ELM downtown to Get Your VVIP Registration Today!
For example, New Zealand has introduced measures to ban the sale of second-hand homes to foreigners. In Australia, Victoria levies an extra 7 per cent stamp duty on foreign buyers, twice as much as before. New South Wales and Queensland also impose additional stamp duties of 8 per cent and 3 per cent on foreign buyers. Even Victoria and Melbourne impose an additional tax of 1 per cent on the total price of houses left vacant for six months or more each year.
In Canada, Vancouver has adopted a series of new policies on the property market. Since February, Vancouver has raised the transfer tax on homes worth more than C $3 million from 3 per cent to 5 per cent; the provincial government of British Columbia, where Vancouver is located, has also made it mandatory to register the files of buyers of uncompleted apartments to find out where the speculators come from. These include a speculative tax of 0.5 per cent this fall, which will rise to 2 per cent by next year, and a 20 per cent tax on overseas buyers.
The direct result of these property market moves has been a sharp fall in house prices in some cities in these economies, with Sydney and Melbourne in Australia falling 7.4 per cent and 4.7 per cent respectively in October from a year earlier. Meanwhile, the Australian house price index fell for the first time since 2011. A new analysis by UBS concludes that house prices in Australia could fall by 30 per cent in a deep recession.
Australia’s housing market is more like a start for markets around the world where house prices are grossly overvalued. Some analysts say Australia’s decades-long housing bull market is coming to an end. Compared with the Australian property market, which is now in a precipice, the Canadian housing market seems to be suddenly optimistic. The analysis said that the new policy on the property market can avoid both overheating and depression, successfully cooling the real estate market.
As early as the first half of this year, sales of high-end independent properties in many parts of Canada declined sharply, with sales of single houses with a total price of more than C $1 million plummeting 46 per cent year-on-year in Toronto and 51 per cent for luxury homes worth more than 4 million. Sales of equivalent homes in Vancouver also fell 47%. Sales of apartment buildings in the Toronto area, with a total price of more than C $1 million, fell 13% from a year earlier. Signs of decoupling of luxury homes in Toronto and Vancouver suggest that Canada’s previous “cooling” measures such as credit tightening and levying a tax on foreign buyers are effective. Recently, the Canadian Toronto and Vancouver property markets have shown a more moderate market.
Benchmark home prices in the greater Toronto area slowed to 2.64% year-on-year, according to data released by the Toronto real estate bureau in October. The index of house prices in the greater Vancouver area shrank to 1% year-on-year, down 0.8% from the previous month. Analysts say this is also an indication that the Canadian housing market may be making a “soft landing”.
‘it ‘s a good choice to avoid both overheating and depression, ‘Eric Lascelles11, chief economist at Royal Bank of Canada Global Asset Management in Toronto, said in an interview with Bloomberg on March 15. The change in policy has effectively cooled the real estate market. Benjamin Tal, deputy chief economist of Imperial Commercial Bank of Canada, said that drugs (policies) are effective. Some kind of landing is under way. I don’t know how soft it will be, but it’s not in the imagined state of freefall.
The BWC Chinese website observation team has mentioned many times that some cities around the world that have been frantically hyped by hot money may introduce measures to restrict overseas speculators one after another. At the same time, with the continuation of the Fed’s rate-raising cycle, it is becoming a trend for a number of central banks to follow the trend of raising interest rates, and as the Wall Street Journal reported, with the possible exception of the people’s Bank of China, central banks around the world may be entering the time to raise interest rates. All this means that the world may not be able to pay for the excess financial leverage of recent years.
In this regard, a local owner in Vancouver, Canada, made it clear that he was in favor of and supported the reasons for curbing the excessive rise in house prices. “I want to see a correction to wake up the whole place,” said Wilsh, a retired aircraft mechanic who lives on the outskirts of Vancouver. If I lose 20 or 300000 to keep the kids here and give this place a future, that’s it. ” He, who bought a house in 2000, is now a paper millionaire because of the appreciation of his real estate. It made him feel more anxious than happy.