Ottawa have vowed to do more to understand the level and impact of foreign ownership of Canada’s property but in the meantime speculation continues. National Bank of Canada has estimated that in Vancouver, a third of the homes sold in 2015 were bought by Chinese investors.
In dollar terms that’s $12.7 billion says financial analyst Peter Routledge. In Toronto the level of far lower, at 14 per cent, and amounts to $9 billion of sales.
Routledge is among those who say the proposed $500,000 funding from Ottawa is not enough to effectively track foreign ownership. In his client note he wrote: “Investing only 25.7 percent of the cost of an average price of a detached home in Vancouver is, at the very least, a touch on the low side.”
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