From June 10 to 29, the B.C. government considered sales data across all types of housing in what it called its “first, early look at the rate and value of purchases of residential property by foreign nationals – people who are neither Canadian citizens nor permanent residents,” as reported by Amy Judd of Global News
The results were culled from Property Transfer Tax forms that are accomplished with each real estate transaction in the province.
In the period covered by the study, around 3.3 per cent of purchases throughout the province involved foreigners. These transactions were valued at $390 million, which amounts to 5.1 per cent of the $7.6 billion revenue from a total of 10,148 residential real estate transactions.
The Metro Vancouver area has proven to be a hotspot for overseas capital. Out of 5,118 transactions worth almost $5.4 billion, 260 involved foreign buyers in transactions totaling $351 million.
While foreigners have been cited by various quarters as major contributing factors to Canada’s overheated housing markets, actual data on the causal relationship between overseas buyers and home price growth does not exist as of present. The 2016 federal budget allotted half a million dollars for the formulation of methodologies to reliably gather this information, a project that has yet to bear fruit.
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Citing freshly collected data, the B.C. government announced that overseas nationals bought approximately 5 per cent of homes in the province over just 19 days last month.