Canada’s measures to curb the impact of foreign ownership of homes will not be increased this year.
That’s the assessment of leading Chinese property listings website Juwai.com which has just published its Foreign Buyer Restrictions Report 2018-19.
It says that the world will see fewer restrictions imposed in the top Chinese property destinations in the coming year compared to the previous three years.
Canada’s most popular destinations for Chinese buyers are Toronto, Montreal, Vancouver, Calgary, and Ottawa; and Carrie Law, CEO and director of Juwai.com says that things are looking more favourable.
“Canada has seen high bars placed in front of new foreign property buyers over the past two years. But we think that in 2018–19 it is unlikely that new restrictions or taxes will be imposed,” she says. “New mortgage regulations have weakened the market, by dampening the primary drivers of higher prices, which is local buyers taking advantage of low interest rates to trade up or buy investment homes.”
Outside Canada, the report expects regulations and taxes on foreign buyers to remain unchanged in Australia, Thailand, the UK, and the US – all popular destinations for Chinese buyers – but New Zealand is expected to increase restrictions.
“New Zealand is the sole major investment destination in the world that we consider to be very likely to impose new foreign buyer restrictions this year. The Overseas Investment Amendment Bill with its recent amendments would have the advantage of finally putting to an end the political uncertainty that has been ongoing since before the last election,” adds Law.