CMHC weighs in on foreign condo investment

CMHC weighs in on foreign condo investment

CMHC weighs in on foreign condo investment This past summer, CMHC attempted to determine the percentage of condos in Canada that are owned by domestic investors, but it has recently admitted it still is unsure what percentage are owned by foreign investors.

In an interview with the Financial Post, CMHC president Evan Siddall admitted they still don’t have the proper data to determine what percentage of condos are owned by foreign investors but that “right now, based on what we know … we don’t think the level of foreign ownership in Canadian housing markets is excessive.”

It is something the CMHC is still trying to figure out, however.

“CMHC continues to explore opportunities to enhance the availability of information on foreign and corporate investment activities in the housing market,” Bob Dugan, chief economist at CMHC’s Market Analysis Centre said in a summer release.

According to CMHC, 82.9 per cent of condominium owners reside in their unit while 17.1 per cent are owned by condo investors. But these numbers don’t include any details about foreign investors.

“As information on condominium investment is rather limited at this time, CMHC has gathered new data on a segment of domestic condominium investment activity in Toronto and Vancouver,” Dugan said this past summer. “While the results are not representative of other markets or all types of investors, the survey helps to shed some light on the profile and purchasing motivations of a segment of condominium investors in Toronto and Vancouver.”

Meanwhile, one of Toronto’s most prolific developers, Brad Lamb, told the CBC in August that he estimates foreign investors make up about 50 per cent of the ownership of condos in Ontario’s capital city.

Related: CMHC crunches condo ownership breakdown
  • Debbie 2014-10-22 3:56:31 PM
    Ever consider the fact that if the investor pays cash or gets a private mortgage, CMHC won't have the information?
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  • JSydneyH 2014-10-22 11:07:39 PM
    Not sure I agree with Brad Lamb's figures. You would think he is closer to the streets because he is a developer, but the anecdotal nature of his facts makes question their validity.
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  • AverageBear 2014-10-23 4:21:00 PM
    The CMHC study is always misquoted as saying 17% of units are rented. If you read the study I think you will find that of the people who own a condo in Toronto or Vancouver and live in it, 17% of those people also own a secondary investment unit.
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