New report to shed light on condo foreign investment

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A new report from the Canada Mortgage and Housing Corporation is set to shed some light on condo ownership; specifically just how much foreign investment is driving prices.

With economists concerned over the heat in the market, CMHC is responding to calls for more data on what is driving prices up. Some believe that foreign investment in our major cities is a large factor; this has been the case in some overheated markets elsewhere, for example in London, England.

CMHC’s Condominium Owners Survey is expected next month and is the result of a study conducted last autumn of those who have bought ‘at least one condo that is not their main residence’. It does not look like the report will show the level of foreign investment, and may be in line with a previous study focusing on the intentions of the owners regarding their property (second home, rental market, etc.) and how it was financed. That report was never published as the data was deemed not to be reliable enough.
  • David on 2014-07-28 11:13:24 AM

    You would think that with all the information gathered during a property sale by Realtors and Lawyers that someone could come up with the percentage of foreign ownership!

  • Doug King on 2014-07-28 12:10:49 PM

    And CMHC in its Divine Wisdom decided that only condos purchased by individuals 'who have bought at least one condo that is not their main residence' are those driving up prices? HMMM? I thought all demand did.

  • Hensey Khan @Hensey Financial on 2014-07-28 11:18:16 PM

    Just don't over build condos, and those you do build, build for average people, recent graduates etc and you will be just fine. We do not have more room specially in the city of Toronto for those super luxury elite condos.

  • Ron Butler on 2014-07-29 9:28:29 AM

    Please understand that when wealthy foreign nationals come to a city and buy properties without any regard to having to actually live and work in the city those purchases distort prices. When someone chooses to use a real estate purchase to "park money" they are not functioning under the same economic rules that families with jobs and budgets need to work under. This leads to the point that we have reached today; while the immediate future trend for property prices in the GTA is positive NOBODY would suggest there is any underlying value to the pricing. If the foreign purchases stop and interest rates increase 200 bps we will see just how distorted the property prices will turn out to be.

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