South forest hill residences.Canadian property market trend revealed. Overseas buyers in Vancouver, Canada, are officially subject to a 15% property transaction tax. Although the policy is only implemented in Vancouver, it has had a far-reaching impact on the entire Canadian real estate market.Please Visit: South forest hill residences to Get Your VVIP Registration Today!
After the introduction of the new policy, it has indeed had a great impact on real estate transactions in Dawen, and various Canadian media have also made false rumors, attracting attention with words such as “Vancouver housing market falls off a cliff”, “Vancouver housing market avalanche” and “Vancouver housing prices”. One of the appalling articles even hit the title “the Vancouver housing market is about to collapse by 20% a month.” But according to the August official data provided by the Greater Vancouver Real Estate Bureau, the situation is not so bad, with house prices not falling, but showing an overall flat or slightly upward trend.
As you can see, the average selling price in the Greater Vancouver area was C $933100 in August, up 0.3 per cent from July. In the case of detached houses, the average price in August was C $1.5773 million, down 0.1 per cent from July. The average selling price in Wenxi, the wind indicator of the entire Dawen property, was C $3.6174 million in August, rising 0.7 per cent instead of falling (Table 2). In terms of townhouses, the average selling price in August was C $677600, up 1.3 per cent (Table 3). On apartments, the average price in August was C $514300, up 0.7 per cent.
A statistic was conducted in the five weeks from June 10 to July 14, 2016, and found that overseas buyers accounted for only 6.6% of them, meaning that property transactions in Vancouver were mainly made by people with Canadian status.
Second, policy cannot fundamentally solve the problem. The rise of house prices in Vancouver is determined by supply and demand. The surtax may stabilize house prices temporarily, but it cannot essentially solve the contradiction between supply and demand.
Third, the power of policy may be difficult to demonstrate in a short period of time. The real trend of Dawen housing market may need more data for a few months to become clearer.
It can be seen that in August 2016, the number of independent houses, townhouses and apartments in Dawen District was 1814, 653 and 1812 respectively, which was basically the same as that of 1741, 653 and 1884 in the same period in 2015. even slightly above 2015, the figures for the same period last year were 1286, 578 and 1812, down 44.6%, 25.4% and 10.1%, respectively.
It can be concluded from the data that the new policy has indeed had a great impact on the volume of real estate transactions in Dawen area, and the impact is more concentrated in the luxury housing market represented by independent houses with higher prices.
