, published last week, Canada\u2019s appealing education system has historically been a prime motivator for property investors from China to buy homes in the country.<\/span><\/p>\nEducational opportunities continue to attract Chinese buyers even though foreign-buyer taxes have been introduced in two of Canada\u2019s biggest metros: Greater Vancouver and the Greater Toronto Area.<\/p>\n
In fact, Canada had 30 per cent more Chinese buyer inquiries in September compared to a year ago, says Juwai.com.<\/p>\n
In August 2016, the BC Liberal government introduced a 15 per cent foreign-buyer tax for Metro Vancouver to cool the region\u2019s market. While home sales in the region did cool immediately following the levy, overall Chinese inquiries for Canadian properties continued to increase.<\/p>\n
However, Juwai\u2019s Law says provincial legislation could play a role in Chinese buyers\u2019 decision to invest in Canadian property.<\/p>\n
\u201cProvincial housing policy helps determine whether those families buy a home, and where they settle down if they decide to stay in Canada,\u201d says Law.<\/p>\n
To address skyrocketing real estate prices in Ontario\u2019s Greater Golden Horseshoe, the provincial government implemented the Fair Housing Plan, which includes a 15 per cent non-resident speculation tax.<\/p>\n\n
Just like Metro Vancouver, activity cooled in the Greater Toronto Area after the implementation of the levy. Law says the tax might divert some Chinese students and families from investing in the province.<\/p>\n
\u201cWe would expect the Fair Housing Plan to be more dissuasive for those buyers who do not have personal ties to Ontario. Students who are living and studying in Toronto can obtain a rebate after two years. The tax will add to their upfront costs, but may not ultimately have that much impact on them \u2013 nor is it designed to,\u201d says Law.<\/p>\n
According to Juwai.com, last year Canadian tuition fees were 42 per cent cheaper than in the US. With those savings and top-tier education rankings in Canada, it\u2019s no surprise education continues to be a big driver for Chinese buyer inquiries.<\/p>\n
\u201cThis year, one-quarter of the Chinese buyers who contact Canadian property sellers through Juwai.com cite education as a primary motivation. I would estimate that education plays some role for at least double that share of buyers,\u201d says Law.<\/p>\n
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