Toronto is the latest Canadian city to announce a foreign buyers tax, following in Vancouver’s footsteps.
The move is an effort to cool down the real estate markets in Canada’s two major cities and it also means foreign buyers are looking elsewhere.
Managing Principal at Urban Analytics, Michael Ferreira, found that when Vancouver implemented their foreign buyers tax there was a spike in interest in Calgary, but it didn’t translate the actual numbers.
Now that the tax has been announced in Toronto, he said that could change.
“I think they’ll look at Calgary and look at the potential for economic growth, combined with the value they get for purchasing there and really, strongly consider it now,” said Ferreira.
He does have some words of wisdom for Calgary, so we don’t repeat the mistakes of Canada’s two major cities.
“Start encouraging a little bit more supply in the market. That’s the issue that both Vancouver and Toronto experienced when you get a sudden increase in interest.”
Ferreira added foreign investment in Calgary could be good news for the short term and that the city hasn’t seen a major highrise project in the past 18 months.