The B.C. government’s newly implemented 15 per cent tax on foreign home buyers in the province will only compel wealthy overseas nationals to set their sights elsewhere, and possibly inflame the Toronto housing market even further, various observers stated.
“Certainly I think Toronto and potentially other markets like Montreal will start to become more attractive, because comparatively speaking they will be less expensive,” Sotheby’s International Realty Canada president and CEO Brad Henderson told The Canadian Press.
B.C. officials said that the new tax, effective for homes sold on and after August 2, was meant to help cool down Vancouver’s overheated housing segment, which has seen an ever-increasing proportion of foreigners over the past few years and has priced domestic buyers out of the market.