‘Up! Up! Up!”
That’s where Toronto’s real estate market is heading, according to a Chinese-language promotional article posted last month on Fang.com, a Beijing-based web portal that lists thousands of homes for sale in countries around the world.
“You will really cry if you still don’t buy,” the same posting blares.
Toronto has become the “dark horse” of the Canadian real estate market, asserts Haifangbest.com, another site jammed with Canadian home listings. It contrasts Vancouver’s continuing drop in prices with a prediction that Toronto-area homes will rise 8 per cent in value this year.
In the months since British Columbia began taxing international buyers 15-per-cent extra on homes in and around Vancouver, those marketing Canadian real estate overseas have shifted their focus to Toronto. Last year, Toronto overtook Vancouver to become the most sought-after Canadian city for Chinese home buyers searching the property listing service Juwai.com, peaking in August just after British Columbia announced the tax aimed at curbing the public outrage over skyrocketing prices. Searches for properties in Toronto proper now surpass the total inquiries for Vancouver, Montreal, Calgary and Ottawa combined.
Richard Silver, a Sotheby’s realtor and past president of the Toronto Real Estate Board, estimates close to 20 per cent of his clients are international buyers – from China, India and the Middle East – interested in the luxury condos and houses he sells in and around the downtown core.
Prospective clients he talked to on his latest business trip to East Asia, just over a year ago, were curious to learn more about the city.
“When I’ve gone to China, people ask me the difference with Vancouver and I say, ‘Toronto’s where you make the money, Vancouver’s where you spend the money.’”
Anecdotes abound throughout the Greater Toronto Area, notably in places such as Markham, describing international buyers calling their realtors from overseas to bid tens of thousands of dollars over asking price to secure a new home.
Despite fears that foreign speculators are juicing the region’s already-booming real estate market, it is impossible to know what impact international capital is having because no official data are being collected.
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