The federal government has previously promised to investigate the proportion of foreign investment in Canadian real estate. However, Prime Minister Justin Trudeau said back in December that his administration would tread around the issue carefully for fear of scaring foreign buyers off, mentioning a “lack of concrete data” about the correlation between overseas capital and surging price growth.
As reported by TheProvince.com
, the Canada Housing and Mortgage Corp. (CMHC) has begun an inquiry on the precise role of foreign interest in housing prices. The organization has declared that it would conduct further studies using a broad range of data points, including information from land registries, banks, developers, and realtors across the country.
British Columbia Premier Christy Clark said in February that her government has been conducting a similar study for over a year, while adding that only an estimated 5 per cent of Vancouver home sales involved overseas buyers. Clark added that her administration would tap the services of outside consultants to further refine their previous findings.
Meanwhile, the Real Estate Council of B.C. has appointed an investigative team to look into allegations of shadow flipping, which is suspected to be a main driver in the continuous price increases in Vancouver. An initial report by the group is expected on April, with full recommendations to follow a month after.
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As one of Canada’s hottest markets, Vancouver has seen continuous growth in real estate prices. With no signs of stopping any time soon, these developments have compelled the Canadian government at various levels to take steps in probing the city’s housing sector.