The South China Morning Post reported that recently, many Western countries such as Australia, Canada, New Zealand and the UK are no longer eager to welcome Chinese investors – who are blowing up real estate prices, causing residents to live.
Local people are not enough to buy houses. In order to control the wave of real estate speculation created by Chinese investors, these countries have issued many measures to limit the flow of foreign investment into real estate.
According to Global Property Guide, the price increase in many Western markets in the second quarter of 2018 slowed down and only grew by a single digit over the same period last year, mainly due to fever China’s home-buying investment cooled down.
In the second quarter, New Zealand housing prices rose only 5.86%, unchanged from the 5.8% increase a year ago. Therefore, the New Zealand government is about to introduce a bill banning foreigners from buying houses in the country. Known in August, the New Zealand parliament adopted this bill.
In New Zealand, the influx of foreigners, especially Chinese real estate collectors, has pushed home prices in Auckland, New Zealand’s largest city, nearly doubled in nearly 10 years. Housing prices in this city are too expensive that many local people are worried and insecure. The New Zealand Real Estate Institute said that the average housing price in Auckland increased from New Zealand’s $496,000 in April 2012 to New Zealand’s $850,000 in April 2018. Housing ownership rates are at their lowest level since 1951. Specifically, only 25% of people in this country are under 40 years of age owning houses compared to 50% in 1991.
Also in the second quarter, UK house prices rose only 2.19%, down from 2.81% in the same period last year. The UK real estate market slowed down because the government wanted to tax foreigners to buy real estate here. In September 2018, British Prime Minister Theresa May announced that the British cabinet is considering imposing 1-3% tax on purchases of foreigners’ purchases in the UK.
In addition, many Canadian cities such as Vancouver and Toronto have also increased taxes on foreigners’ home purchases this year, helping Canadian real estate to significantly reduce heat. According to Global Property Guide, housing prices in 11 major cities in Canada increased by only 0.41% in the 12 months prior to the third quarter of 2018. Meanwhile, in 2016 Chinese people rushed to buy houses in the city. Vancouver, making the price of housing in this city escalate at a rate of 30% per month compared to the previous year.