Preliminary data collected by the B.C. government on foreign investment in the province’s sizzling real estate market shows that in Metro Vancouver five per cent of all real estate purchases were made by foreign buyers, nearly all of them Chinese nationals.
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The province’s move followed public outcry that foreign ownership is contributing to skyrocketing prices in Metro Vancouver’s skyrocketing real estate market, but that its exact impact isn’t officially quantified.
The province released the report amid backlash from politicians, residents, global groups and analysts who point to foreign buyers as a factor in driving up home prices to record highs. In Burnaby foreign nationals accounted for 11 per cent of the purchases.
Figures released by the Finance Ministry show the value of all the transactions across the province involving foreign buyers totalled $390 million during the three-week period.
“It’s certainly a presence”, he told reporters.
“It is real, it is actual, it is factual and it is beyond conjecture”.
However, this information is based on a very limited from June 10th to June 29th. Those who are neither are asked to disclose their country of citizenship.
Data released July 7 is but a snapshot, and a small one at that.
Foreign buyers, especially those from China, have been singled out as the main factor driving soaring Lower Mainland real estate prices.
The western Canadian province said on Thursday 3.3 percent of home sales involved foreign buyers between June 10-29 and the average investment in a property by a foreign national was C$1,157,000, significantly higher than the C$735,000 average investment by a Canadian citizen or permanent resident. He also has said even if there is a pattern, the government would be reluctant to introduce a tax on foreign ownership.
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De Jong’s announcement is at 10:30 a.m. and we will have full coverage here and on BC1.
