Investors immigrating to Canada have learned that the recent boom in the Canadian luxury real estate market is the most significant in the world, with its price increase rate attracting considerable international attention. Currently, the price growth rate of luxury homes in Canada is 4-14 times, with international demand and the weakness of the Canadian dollar being key factors driving the boom in the Canadian luxury real estate market.
According to the latest global wealth report published by the WorldWay real estate agency Knight Frank, which ranks global luxury residential prices, Vancouver, Canada ranks first, with a price increase of 25% in 2015, while Toronto ranks 12, with a price increase of 8% in 2015.
For the exceptionally booming luxury real estate market in Canada, implementing a new property tax targeting foreign buyers may be a potential solution. Additionally, cooling the luxury real estate market could also be achieved by restricting foreign ownership. Currently, it is unlikely that the Canadian government will restrict foreign ownership in major cities; however, approximately two-thirds of Canadians express a desire for government intervention to cool the real estate market so that housing prices can decrease.