Canadian Prime Minister Justin Trudeau said soaring house prices in Vancouver and Toronto could be partly attributed on the inflow of capital from Asia, reported AFP.
We know that there’s an awful lot of capital that left Asia in recent years,” he said.
“Clearly, foreign cash is playing a job” in the home affordability crisis in Canada.
Economists are concerned that property prices in both cities have grown to record levels beyond the reach of most Canadians.
Both cities have registered double digit increases in house prices over most of the last a decade.
While there’s a widespread perception that international speculators and investors are to blame for the cost rises, no real data supports this link.
Actually , even Trudeau had no supporting information to back up his statement. Nevertheless, his authorities set funds aside to look into the problem during the previous budget released in March.
Since 2008, the Canadian government has been trying to stiffen the red hot property market to cool, but the measures have failed.
“we’re all expecting to stabilise the market,” said Trudeau, including that any national move requires fine balancing, controlling property cost increases while present equity is ’sed by not devaluing the house, especially in markets that aren’t overheated.
Trudeau’s statement may burst shortly and follows the Toronto Dominion Bank’s warning a property bubble is forming in Vancouver and Toronto.
Toronto and Vancouver saw continued increases in resale and new building task, while Alberta and other resources -making regions seen price declines and sales. Other markets, on the other hand, read little or no cost increase.
“There is little disagreement that Canada’s hottest housing markets are ripe for a correction; the difficulty is calling its timing,” said Toronto Dominion Bank.