Now that the British Columbia government has given Chinese buyers second thoughts regarding residential properties in Vancouver, other North American cities are rising up to take its place.

 

Home inquiries in Vancouver, previously a top choice among Chinese investors, fell 81 percent in August from the same month last year, data from a Chinese property portal showed.

 

At the same time, Seattle recorded a humongous spike in interest from China, with buyer inquiries shooting up by 143 percent. The Washington capital is currently the number one city for inquiries in North America. Similarly, inquiries in Toronto ascended a staggering 142 percent in the same period.

 

The exodus to other North American cities seems to vindicate the British Columbian government’s decision in August to start requiring an additional 15 percent in property transfer taxes of foreign buyers. However, Vancouver has been losing local and overseas buyers all year, said Matthew Moore, president of the Americas for the Chinese property portal . “The shift to other cities has actually been going on for months, with buyer demand momentum shifting to other cities with similar appeal but lower entry prices.”

 

Toronto’s attractiveness to foreign property investors may soon cease though, with politicians recently debating the viability of a cooling measure not unlike that in Vancouver. In an op-ed for the Financial Post, former finance minister Joe Oliver urged the Ontario government to charge a 15 percent tax on non-residents and foreigners acquiring residential property in certain Greater Toronto Area communities. “Increased foreign buying is going to exacerbate an overheated real estate market, to the detriment of all Torontonians and at risk to the broader economy,” he said.

 

Vancouver has been topping the hottest-of housing market indices this year. Washington is not far off, with Chinese buyers splurging on USD1.6 billion worth of real estate in the state last year.

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