Foreigners stopped buying houses in Vancouver following the introduction of a 15% real estate purchase tax for those who are not citizens of Canada nor have a permanent resident card, The Wall Street Journal reports.
The tax has been introduced on the 2nd of August. As a result, last month, housing sales to foreigners totaled 1% of a total amount of property transactions, although, seven weeks prior, the share of foreign buyers in Vancouver accounted for 13%, as is stated in the report made by the authorities of British Columbia, Canada.
Imposing additional tax for foreigners was intended to curb an increase in housing prices, which have surged by 31% up to 933,100 Canadian dollars over the course of 12 months. The funds collected through new taxation will be allotted to support the city residents and citizens with low income.