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Vancouver might be cooling even prior to new tax - CREA

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Ephraim Vecina | 19 Aug 2016, 08:15 AM Agree 0
New tax on foreign home buyers is not yet playing a major role in moderating the Vancouver market, says CREA
  • MFenn | 20 Aug 2016, 01:20 AM Agree 0
    Where the article tactfully says the punitive 15% tax "has invited strong accusations of crystallizing discrimination against overseas nationals", it is good to remember that in Vancouver "foreigners" or "overseas nationals" can be code for "Chinese".

    But even leaving aside those who blatantly seek to discriminate against Chinese people, it is hard to see why making the property market less attractive to investors can be presumed to strengthen the market and confidence in it. When some proponents of the punitive tax also argue for lessening the amount of new land to be released for property development, this is rather like saying through one corner of one's mouth that prices are too high and they must "do something", while through the other side of their mouth simultaneously advocating doing something that, in decreasing the property inventory, can by the law of supply and demand push the price of property even higher.

    Such arguments seem to represent Diefenbaker-style nationalist populism running amok.
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