Foreign investor stats revealed

by REP03 Dec 2015
(Bloomberg) -- Foreign owners made up a bigger share of the condominium markets in Toronto and Vancouver over the last year, according to the nation’s housing agency.

Foreign owners of condos comprised 3.5 percent of the market in Vancouver and 3.3 percent in Toronto, according to a report from Canada Mortgage & Housing Corp. which surveyed property managers. That’s up from 2.3 percent in Vancouver last year and 2.4 percent in Toronto, Canada’s largest city. When narrowing to the downtown core, foreign buyers made up 5.4 percent of Vancouver condo buyers this year versus 3.4 last year and 5.8 percent of Toronto condo buyers versus 4.3 percent.

Politicians have been under pressure from many quarters including Vancouver Mayor Gregor Robertson, HSBC Holdings Plc and local residents to start monitoring offshore money that may be pushing up home prices, particularly in Vancouver. The average price for a detached home rose 9 percent to C$1.02 million ($760,000) in Toronto in November from a year ago while Vancouver home prices soared 18 percent to C$752,500.

So far, the agency’s data is limited to condominiums and based only on a survey of property managers. Offshore buyers can keep their location and identity secret, Evan Siddall, chief executive officer of CMHC said in a speech last month.

The Ottawa-based agency released the data as part of its Housing Market Insight series, and will publish about 40 more reports on different cities and housing topics throughout 2016.
 

COMMENTS

  • by Derek Austin 12/3/2015 3:06:30 PM

    WOW , CMHC is so on top of things, we ( I live in a small town in Alberta) all new this a year ago when they said Foreign investment wasn't causing a concern. With there big stash of cash and all there staff I wish they could do tell me something I don't know.How about some new approaches to Financing enviromental improvement in homes etc. Helping people finance development of secondary units in their homes to house family members etc.

  • by 12/3/2015 4:44:18 PM

    Interesting the article doesn't talk about the value of the properties purchased compared to total value of properties purchased: Only the percentage ownership. I imagine those stats would show a far higher percentage for FI's.
    That would make this article misleading at best.

  • by Jit Hoong Lim 12/4/2015 8:42:37 AM

    I am quite surprised by the numbers. I was thinking it was in the range of 20-30%. But that's my guesstimate. :P

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