The Canadian Real Estate Association (CREA) is concerned about the government's bill to ban foreigners from buying real estate effective Jan. 1.

The picture shows the "Vancouver House" skyscraper apartment building in Vancouver, Canada.

(File photo, Bloomberg)

[Instant News/Comprehensive Report] Many countries in the world are facing the problem of soaring housing prices. In order to curb real estate speculation, the Canadian government announced that it will close the housing market to foreign investors from January 1, 2023. Buying real estate and housing as an investment, but this bill has aroused the concern of the country's real estate association, believing that it will affect the country's reputation and invite retaliation from other countries.

According to "CNN" report, the bill is one of the political opinions expressed by the Liberal Party and Canadian Prime Minister Justin Trudeau (Justin Trudeau) during the 2021 election campaign. Trudeau bluntly stated at the time that Canadian real estate is attracting profiteers and wealthy companies. and foreign investors, “which has led to a cascade of problems with vacant, underutilized housing, which has led to rampant speculation and skyrocketing housing prices.”

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The report pointed out that the bill came into effect on January 1 this year and will be valid until the end of 2024.

According to statistics from the Canadian Real Estate Association (CREA), the average house price in Canada will reach its peak in February 2022, with an average of about 800,000 Canadian dollars (equivalent to NT$17.79 million); House prices have only gradually fallen steadily by about 13%.

However, CREA pointed out that compared with before the beginning of the Wuhan pneumonia (new coronavirus disease, COVID-19) epidemic in late 2019, the average house price in Canada has increased by about 38%, while the inventory of homes for sale has returned to pre-epidemic levels.

In addition, CREA is worried about the latest Canadian government bill, saying that prohibiting foreigners from buying real estate may affect Canada’s national reputation of “hospitality” for many years. “The potential benefits of this ban may not be great.”

In addition, CREA also bluntly stated that the ban may provoke retaliation from the United States and Mexico, such as prohibiting Canadians from purchasing goods in these countries, especially because many retirees in Canada like to go to the United States to buy property to escape the local winter.

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