Survey By Urbanation Reveals Additional Info

Ever since the 15% foreign sales tax was introduced in Vancouver, the buyers were forced to concentrate and do more dealings in Toronto. The outcome of the fear that was instilled after the endorsement of the 15% tax has not yet manifested.

In a survey released by Urbanation regarding condo buying foreign buyers that 5% of the condo sales in Toronto is accounted for by foreign buyers.

Included in the survey are, real estate companies and developers that are representative of latest condo projects. It also shows the sales that took place in the past years till date, pre-construction, work-in-progress and also completed projects. The survey also highlighted the likely areas investors target in Toronto.

The senior vice president of Urbanation, Shaun Hildebrand said; “The results of this very important survey show a rather limited role of foreign buyers in the GTA new condo market and a very significant overall share of investors. These estimates coincide with the percentages of new condos entering the rental market upon completion, indicating the important role investors play in the GTA housing market.”

Since the foreign sales tax has given quite a number of people a run for their money, it is most likely that the share of foreign investment could go up in the upcoming months. The data that will be released in the future will give a more vivid depiction. The good news, for now, is that there is a baseline which can be compared with.

Urbanation mentioned in a release; “Among projects indicating a presence of foreign buyers, shares of units sold to foreign purchasers ranged between 1% and 25%. Shares of sales to domestic investors ranged between 5% and 90%. The highest shares of sales to foreign purchasers and domestic investors were generally found within centrally-located projects in the Downtown Toronto area.”