The government of Ontario was early to claim victory over the rising cost of housing. According to a digital real estate platform for Chinese buyers, the non-resident speculation tax will not hurt foreign investors as it is still advantageous to invest in pre-construction condominiums, whose prices are expected to go up over the construction period and offset the tax.
The government of Ontario recently put in place a levy on foreign buyer transaction that consequently caused home sales to drop. Nonetheless, Chinese investors continue to show strong interest in real estate in Canada and the US. The reason is due to safe and stable markets. The investors also consider sending their kids to Canada or US top universities.
It’s not in the best interest of the governments of both Canada and the US to stop these investments which strengthen their revenue. In fact, any measures that may be targeted at weakening this trend are only likely to come from the Chinese side. Canada and the US will continue leading real estate investment markets for Chinese investors.
Source: BNN, Juwai, @byronburley