Prime Minister Trudeau is under pressure to match rising immigration with housing capacity and to keep a lid on soaring prices. Read more at straitstimes.com.
WASHINGTON – Under its plan to address labour shortages and ageing demographics, Canada wants 465,000 new immigrants in 2023, rising to 500,000 in 2025.
The ban addresses the perception that foreign buyers are driving up prices – though analysts say the foreigner factor is overblown, and that the new ban will have little effect on prices, and it is really housing policy that must be aligned with demand. This week, Ravi Kahlon, BC’s Minister of Housing – a post newly created just months ago to deal with the issue – called on the federal government to “tie immigration numbers to affordable housing targets and as well as new housing starts, so we can ensure the people here have the support for healthcare and housing, and new immigrants are supported as well”.
Separately, Kashif Ansari, co-founder and CEO of the property data firm Juwai IQI, told The Straits Times: “Foreign buyers have not driven up Canada’s home prices. The past three years proved that foreign buyers aren’t the problem, because prices surged while foreign buying plunged. “That’s already been quite a disincentive, so we’ve seen the share of foreign investment fall since that tax was implemented in 2016. It fell again in 2017 when China implemented stricter capital controls.”During the pandemic, foreign investment was less than half a per cent of sales in BC, and yet the province had record sales and record home prices, Mr Ogmundsen said.
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