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Western Cities Want to Slow Flood of Chinese Home Buying. Nothing Works.

June 12, 2018

By Paul Vieira, Rachel Pannett, Dominique Fong : msn – excerpt

Governments from Vancouver to Sydney to Toronto are using taxes and other restrictions to tackle real-estate bubbles.

Crowds swept into the Beijing Exhibition Center on a recent morning for a real-estate expo that drew thousands of people interested in foreign property.

That kind of surging interest has created a flood of capital that is washing over cities throughout the globe, distorting home prices, irritating local residents—and defying almost every attempt to restrain it.

In Vancouver, Chinese home-buyers snapped up homes so fast in 2016 that prices escalated at a rate of 30% a month compared with a year earlier. Officials imposed a 15% foreign-buyers tax, and Chinese buyers turned to Toronto, where they soon bid up home prices…

Beijing has tried to limit capital flight, fearing it shakes confidence in the national economy and could potentially weaken the yuan.

A recent crackdown prompted several Chinese tycoons to unwind foreign purchases by their companies acquired in debt-fueled global shopping sprees, including trophy office towers and luxury hotels… (more)

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