According to statistics and statements made by B.C.’s government on Tuesday, it’s been estimated that over $885 million was spent in Metro Vancouver by foreign investors just within five weeks.
The government also added that the amount represents up to 10% of the actual value of all real estate purchased during the period.
Statistics show foreign nationals buying 5% of Metro Vancouver homes sold
The report — which includes houses registered between June 10 and July 14 — stated that within Metro Vancouver, some cities including Burnaby and Richmond recorded the highest number (eight percent) of foreign investors.
Other cities including Vancouver recorded eleven percent.
The government reported that Metro Vancouver is a gold mine for foreign investors, as it accounted for 73% of their investments.
Are Foreign buyers responsible for overheated market?
Some have made speculations regarding whether those investments made in Vancouver are the main reason behind the skyrocketing prices within those areas.
B.C. Finance Minister Mike de Jong believes that foreigners are to blame for the escalating house prices. He added that the government is taking measures to further ensure that there’s stability within the market.
An announcement was made yesterday which said that a 15% property transfer is to be charged on foreign buyers. However, it only applies to the Metro Vancouver region.
The charge entails that anyone who’s not a Canadian citizen or permanent resident is obliged to pay a 15 percent tax when they register their property.
Finance Minister, de Jong said “It’s going to generate a lot of money,” if the current rate of foreign nationals purchasing property persists.
De Jong defends 15% foreign tax
The minister also shed some light on the addressed criticisms of the tax charged.
Non-citizens and non-permanent residents who reside and work in the country will face a tax penalty, de Jong said.
“Immigration, constitutionally, remains a federal responsibility,” he said.
When asked about the Quebec immigrant investor program which some argue channels millionaire investors into B.C., he responded by saying that those prospects were exaggerated.
“This is taking on a bit of a conspiratorial nature,” he said. “It’s not like vast boatloads of people are landing in Montreal with a Vancouver ticket.”