Since Vancouver introduced a 15% property tax for foreign purchasers last August, and Toronto is poised to follow suit, the opportunities for Canadian investment now seem to lie in Calgary.
“I think that foreign investors who want to invest in Canada will shift to Calgary, lured by the most attractive returns in the country,” commented Calvin Buss, company president of Calgary-based Buss Marketing.
Alberta is still working its way back towards a healthy economy – meaning that property prices are much more reasonable compared to other areas in Canada.
Calgary also benefits from the fact that a rise in house prices would be welcomed – unlike in Vancouver and Toronto – meaning that foreign investors would be encouraged.
“They’d [foreign property investors] actually be welcomed here in Alberta,” says Todd Hirsch, chief economist at ATB Financial.
Hong Wang, an estate agent in Calgary, agrees. “Our market needs support from foreign money,” she explained.
Following the introduction of the foreign buyer tax in Vancouver, Juwai.com, a Chinese website that targets international property buyers, promoted the benefits of Calgary. It predicted that a new direct flight offered by Hainan Airlines between Beijing and the Canadian city would bring “an influx of Chinese visitors in the future” – although it seems that this is yet to come to fruition.
The key to gaining more international investors could lie in tourism. “There is a discussion about whether or not Calgary should apply to host another Winter Olympics,” continued Wang.
“Why is this even a question? Anything that can put us on the map is great.”
Calls are now being made for the local municipal government do more to raise Calgary’s profile with foreign investors.
