Foreign investors are not responsible for the housing prices in Vancouver

The rising housing prices in Vancouver had become a concern for the government and investors with many people giving various reasons for the increase. Some people have even claimed that foreign investors were the driving force for the rising prices. The CEO of the Canadian Mortgaged and Housing Corporation stated that Vancouverites should not blame foreign buyers for the changes in the housing market.

Evan Siddall highlighted that over the years Vancouver had several disparities in regards to the real estate market.
Speaking to the Vancouver Board of Trade on Wednesday, Siddall explained that the housing price is causing chaos between Vancouverites. “Established homeowners are going against younger families trying to get a stand in the market and previous residents against newer arrivals”.

Speaking further, Siddall cited that the tax imposed on foreign investors was not called for as there was no evidence showing that they were responsible for the increase or decrease in housing prices.

Former Goldman Sachs managing director explained that although in some part foreign investors play a role in the housing prices, the most contributing factors included, domestic investing, population and economic growth, Canada’s tax laws, and supply issues.
Siddall also directed comments at the media for their coverage of the Vancouver real estate market but insisted that is was not based on racism.
He stated that it does not go noticed when a whit person buys a house but when a person with a different color buys a house, it becomes a different issue. In his perspective, it’s not a sign of a good investment as buyer should be treated equally.

Responding to the claims of people that foreign investors influence market prices, Siddall cited that, the real estate market has already began to experience a drop in price before the tax was introduced and furthermore, a tax on foreign investor was also initiated in Sydney and Hong Kong but it have little effect.

Before the tax on foreign investors was initiated in July, Vancouver recorded over $850 million in residential property transactions involving foreign investors which was up to 55% of all business transactions recorded in Vancouver.
Although the Real Estate Board of Greater Vancouver have revealed that there was a drop in sales in November, Siddall continues to maintain that the decline in market activities should not be put on foreign investors.

He added that, it is important to have housing as a driving force to boost economic growth and build a stronger community. Housing should not bring division between neighbors and create tension with foreign investors.