After a new property tax for foreign buyers took effect in early August in Vancouver, British Columbia, foreign purchases of homes plunged, according to province data.
MarketWatch staffer Kim Mackrael reports that sales involving foreigners accounted for about 1% of all Vancouver transactions during the month of August, but during the seven weeks before the tax came into effect, foreigners accounted for around 13% of all Vancouver deals, according to the province.
In late July, British Columbia announced that it would begin charging an additional 15% property-transfer tax for foreign home buyers in Vancouver. The provincial government has said the policy is aimed at making housing more affordable for local residents. The benchmark price for a typical Vancouver home rose about 31% in the year through August to 933,100 Canadian dollars ($714,362) according to the Real Estate Board of Greater Vancouver.