As you know, the supply of residential land is limited by the Agricultural Land Reserve established two generations ago. In hindsight, the founders were wise. In today's climate, unbridled building would destroy the charm and quality of life in metro Vancouver.
London, UK has long enjoyed the investments of the international set and the rich from the Middle East. In just 2015, the government imposed a 28% withholding tax. Too late.
Foreign investors are now paying the price as the backlash has voted for Brexit. The pound has tanked big time and London prime property is falling. Can only accelerate as Brexit becomes final and brutal. That's a black swan event.
“Foreign home buyers: How other countries limit money from abroad
It was revealed this week that the Canada Mortgage and Housing Corporation is trying to keep tabs on foreign money in Canada's residential real estate market.
The national housing agency has come under fire in recent years for a conspicuous lack of reliable data about the money coming from abroad and how it may be contributing to soaring home prices in cities like Vancouver and Toronto.
Our neighbours to the south, for example, keep detailed records of who is buying what and for how much...”
http://www.cbc.ca/news/business/real-es ... -1.3479508
In Australia, there are sweeping restrictions on foreign buying...
“Foreigners who buy vacant residential land have to build on it within two years...
Canadian critics of foreign ownership sometimes hail Australia as a model for policies that can be applied here at home, but there's much debate over that sentiment.”
Etc etc.
Hong Kong has a similar 15% tax on non-residents. Helped cool the market.
“And in 2012, the city announced the establishment of areas with new dwellings that can only be sold to permanent residents of Hong Kong for the next 30 years.”
Then, there's Singapore's draconian anti-speculation laws which has absolutely cooled the private residential market.
All these measures have become necessary because of the amount of hot money flowing out of Asia. They're not just content with an apartment or two. They want to buy the block, and play land developer too.
In Vancouver, I see the anti-foreign anti-speculation measures as the first part of the affordability solution. This takes care of the pressure at the high end, which reduces pressure on the middle market.
And, these measures buy time to implement policies to boost supply for the renters and newbie buyers. For example, Vancouver's new affordability policies. And, these policies are most effective when they are targeted.
viewtopic.php?f=8&t=129647
Vancouver has a future. Hopefully, it will remain a nice place. And, there's a place for the young and not-rich.
Let's not have the kind of Rrump blue collar and white revolt. Nasty gets nastier.