In the beginning of the year, China made loan regulations which limited the amount of money Chinese investors could take out form the accounts with a restriction of them making use of the money on foreign real estate markets.
This new regulation saw many Chinese buyers shift their interest in the Canadian real estate market.
Furthermore, Chinese buyers interest was subdued after the British Columbia government introduced a 15% tax on foreign buyers last year which took effect in August and according to Brad Henderson, president and CEO of Sotheby’s International Realty Canada, the tax has manage to fend odd potential Chinese buyers from Vancouver.
This shift of attention has led home prices in Vancouver to return to their normal rates although some might say, prices are still expensive, it is however more affordable than they were at their highest last year.
This statement came about from a research named China to Canada: International Home Buyers Insights which notes that the tax did not only lead to Chinese buyers not buying in Vancouver but there has also been a significant drop in people searching on Juwai.
Since July 2016, Chinese search for home in Vancouver has dropped by 81% and the city is expecting a further drop in Chinese buyers.
The British Columbia government introduced the tax last year to cool down the high prices in the city that reached record high amid low supply.
After the tax was implemented, there was a 78% decline in August with an additional drop in November. However, although Chinese buyers had little interest in Vancouver, other leading real estate markets saw high interest of foreign buyers especially in Toronto.
In the awake of the tax, inquiries by Chinese buyers in the city if Calgary rose by 1,050% in August and in September there was a 420% search. Nevertheless, the low interest by Chinese buyers has not dampen the atmosphere in Vancouver as the market remains vibrant despite less interest from Chinese investors.