At the same time, this tax impedes the purchase of housing, according to a forecast of the brokerage firm Royal LePage in Toronto. The average price is expected to drop 2.8% to $411,400.
The new speculative tax introduced in 2018 by the provincial government, targets buyers of non-elite residences in some areas, including parts of Vancouver and Abbotsford metropolitan areas, and is 0,5% of the property value. In 2019, it will grow to 1% for Canadians outside the province and up to 2% for foreign buyers. For residents of the state, it will remain at 0.5%, Bloomberg reports.