Post the 15 percent foreign tax levy by the government, first in Vancouver and then in Toronto, many realtors felt it was the right time to shore up investor interest in other Canadian cities like Calgary and Montreal. Foreign investment may be frowned upon in Toronto and Vancouver, but the sentiment is the opposite in Montreal, and especially Calgary. Alberta is just about crawling out of a recession and could do with a lot of foreign investment. Montreal too has a healthy demand and supply balance and can accommodate foreign buyers.
However, in spite of local realtors in Calgary putting considerable efforts to drum up interest, the sales have not picked up in the city. Juwai.com – the largest international Chinese international property website – persuaded many local realtors to advertise with them for Calgary. The response though was anything but encouraging. Does this mean property seekers are not yet ready to invest in Canada’s second tier cities and are continuing to hold a torch for Toronto and Vancouver? It certainly seems so, given that the real-estate markets in both these cities are going strong, in spite of government interventions.
4 Reasons Why Calgary and Montreal Leave Investors Cold
There are many reasons why Canada’s two other important cities, Montreal and Calgary are failing to evoke much interest among foreign investors:
- Lack of Asian Population: While Calgary does have a healthy Asian and South Asian population, it isn’t anywhere close to what you would find in Vancouver and Toronto. Montreal, especially, does not have a thriving Asian community, which means that interest from Chinese foreign buyers is limited. Also, the fact that French is a requirement in Montreal dissuades many English-speaking investors.
- Lack of Profile: Toronto and Vancouver are Canada’s best known cities. By comparison, Montreal, and especially Calgary, are not yet as popular. Many realtors in Calgary have been persuading the Alberta government to make efforts to raise the city’s profile among foreign investors by hosting important sporting events, cultural festivals, concerts, etc.
- Housing Supply Is Not a Problem: The reason for Vancouver and Toronto being dream investment destinations is because both cities enjoy excellent real-estate fundamentals: The demand always exceeds supply. The case isn’t the same for Calgary, because housing stock can be added easily. Similarly, Montreal enjoys a good balance between supply and demand. Foreign buyers hesitate to invest when they aren’t sure if prices will stay healthy in the long-term.
- Less Interest in Making it a Home: Many foreign buyers who invest in Toronto and Vancouver do so with the intention of eventually moving to these cities. That desire is lacking when it comes to Montreal and Calgary, which reflects the lack of home sales.
Toronto Real-Estate Continues To Soar. Why Not Consider Buying a Luxury Condo?
Toronto remains a red-hot market for real-estate. People from both within and outside Canada view Toronto as a great destination, and the demand for housing is only set to rise further. While there is regular talk of the market cooling down, there has been no significant drop in prices. Given that Toronto has limited housing space, and there is a constant influx of immigrants, there is little doubt that the real estate market will remain on solid footing for years to come. If you are looking to invest in a property in Toronto, why not consider buying a luxury condo in the chic Yorkville location? The Davies, located at Avenue Road at Cottingham, is a new condo development that is a stone’s throw away from the vibrant Yorkville downtown. With easy access to some of the finest eating and entertainment options, the area is easily Toronto’s most celebrated and prized neighbourhood.
To find out more about our new condos, contact The Davies at 647-360-9588 to book an appointment or register online for more details. Check these floor plans and work with our team to find the best option for your new home.