“While no hard number on foreign buyers in the Metro Vancouver housing market exists, there are data and analyses available,” said a recent report from the B.C. Real Estate Association (BCREA). “After surveying the relevant data both locally and internationally, we found that estimates of foreign ownership tend to cluster around five per cent.
“We have been unable to find any outliers of data to suggest the impact is more pronounced.”
Despite the report, Cameron Muir, the association chief economist, admits that data is hard to come by. While the BCREA report suggests that domestic investors are three to four times more active than foreign buyers, it hasn’t stopped some from weighing the impact regardless.
Vancouver Mayor Gregor Robertson recently drafted a letter to B.C. Premier Christly Clark requesting that the government consider a speculation tax against property flippers and luxury homes – an idea the Premier put to bed in recent weeks.
And with China possibly easing up on the amount of currency Chinese natives can take abroad – the current limit is just $50,000 – industry vets are worried the result could spur instability in the market, which could lead to an eventual housing correction.
“As Chinese investors have had the greatest impact on Vancouver's inflated prices, this change being brought to market will have a major impact on continuing to push house prices to unsustainable values,” said an industry professional on the REP forum. “This will help land owners and Chinese investors already in the market and continue to push local buyers further from the ability to purchase a home in the more desirable areas on which the Chinese have focused their buying.”
Housing data on how many foreign investors are gathering up Canadian homes is needed if Canada is to maintain stability in the real estate market, according to industry experts.