On the region’s sizzling housing front, it seems the foreign buyers tax may be scaring off foreigners.
“We only market overseas properties to Chinese. We only advertise overseas real estate, for example real estate in Vancouver.”
This, from Matthew Moore, President of Juwai: a Chinese website that markets overseas properties.
He says it’s seen a significant decrease in interest in Metro Vancouver Real Estate.
Luxury property interest down, homes less than $1 million still selling
The website gets about two million visitors a month from China.
Since the announcement of the foreign buyers tax, Moore says August inquires saw a steep decline.
“The big news is that for homes that are one million dollars and more, there’s a 55.6 per cent decrease in inquiries. Oddly enough in homes that are one million dollars and less, we’ve actually seen about an 8.5 per cent increase in inquires.”
Moore says that bump could be attributed to overseas parents looking for accommodation for their children seeking post-secondary education.
“There’s a lot of people who are buying non-luxury homes for their child who is studying abroad, they may buy an additional property.”
A boost in searches for Toronto
He adds numbers have dropped since last year.
“Vancouver has dropped 81 per cent in August compared to August of the previous year in 2015. Where as in that same period, Toronto has actually increased by 142 per cent.”
When asked if thinks the levy will have long term effects…
“There will be a renewal of demand as the uncertainty subsides.”
Compared to the same time period last year, Moore says Vancouver searches dropped 81 per cent.