Vancouver penthouses, ski chalets at Whistler, and holiday retreats in the Gulf Islands are among the thousands of properties identified in a dirty money probe that estimates more than $7 billion was laundered through the western Canadian province of British Columbia last year.
And yet, hiding behind an absence of good data, government officials have mostly refused even to admit that foreign capital is making it impossible to buy a house in Vancouver
“Vancouver is in a different league,” he said. “It is probably among a select group of global cities where home prices are not connected to the local economic fundamentals.”
In 2013, the International Monetary Fund called on Canada to create a federal entity with a clear mandate to monitor threats to the financial system. The IMF earlier this month scolded Ottawa for so far ignoring its advice.
“It won’t solve the problem, but it might be an effective way to remove the most problematic element of foreign investment in Canadian real estate.”
In Vancouver, and increasingly Toronto, fear abounds that Chinese money has helped inflate a property balloon of Hindenburg proportions.
VANCOUVER — The Canadian and British Columbia governments are complicit in fuelling Vancouver’s housing crisis as foreign Chinese buyers continue to shut local residents out of the market, a new study says.
“We expect Chinese investment overseas to more than double or triple by 2020, and that is not just in Australia – we mean globally.
Largely as a result of governments’ efforts to attract wealthy immigrants and investment from East Asia, “house prices have risen rapidly and the detached housing market is now unaffordable to most Vancouver residents”
But the bad news doesn’t just affect people who haven’t bought yet. Upgrading from a condo to a house in these cities would become a mere fantasy for many in the middle class under these scenarios.