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Comment by zhuzhuor | Hacker News Reader

IMO, the timing also coincides with Chinese government's several actions of tightening regulations for foreign exchanges/purchases. So it may be a combination of multiple factors (not sure which one is more significant)

See https://www.ft.com/content/87d8a7e8-cfe8-11e6-b06b-680c49b4b...

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From the original article:

"It’s working (pdf), according to Bank of Montreal analysts. They show how prices have been falling in Vancouver but are still appreciating steeply in Toronto and Victoria, which don’t have a similar tax."

If your point were correct, you'd also see declining prices in Toronto/Victoria, no?

Here's the PDF: http://economics.bmocapitalmarkets.com/economics/amcharts/GD...

The foreign tax appears to be more significant due to other cities without the tax not seeing prices drop.

You have to remember that Vancouver was the hottest housing market in Canada. Toronto is #2, but prices there are maybe 60-80% of those in Vancouver. And Toronto is a massive city with a ton of high paying jobs. Vancouver not so much.

As I stated in another reply, I have no doubt the foreigner tax had an impact. But even without it, the Vancouver market was poised for a downturn.

We're seeing signs of slowdown in house price increases here in Toronto as well this year. Many houses around our area are selling below asking price (which is historically uncommon)

Perhaps, as some other persons commented on the thread, the housing price at Vancouver was pushed high by oversea money? The other cities were not like this?

I wonder if this would also affect the Australian real estate market. I certainly hope so. The situation is getting to unsustainable levels. Now all we need is is a similar empty house tax law and we're all set.

Yes I think it's the main trigger. Vancouver is in a major house price bubble and the correction is going to be huge.

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