Canada has banned foreign ownership of residential real estate for two years to ‘cool’ an overheated housing market.
Official information from Immigration Canada said the ban affects non-residents, prohibiting ‘foreign nationals from owning homes in Canada, starting January 1, 2023’.
Slotted in as Division 12, The Prohibition on the Purchase of Residential Property by Non-Canadians Act, was enacted as part of the Bill C-19 budget, stating:
‘It is prohibited for a non-Canadian to purchase, directly or indirectly, any residential property.’ (PDF)
Those exempted from the ‘shock’ left-wing government’s Canada-first hard-border decision include diplomats, genuine refugees, non-citizens married to a Canadian, and dual citizens seeking permanent resident status.
Canada’s move lags behind New Zealand legislators who, in 2018, passed an Ardern election promise into law, banning ‘many non-resident foreigners from buying existing homes’.
Celebrating the ban, NZ Labour described the law as a ‘significant milestone, demonstrating the Ardern government’s commitment to making homeownership a reality for more New Zealanders’.
Notably, added the ABC in its initial report at the time, other than Australians, ‘The majority of overseas buyers [of residential housing in NZ] were from China.’
New Zealand’s Overseas Investment Amendment Bill, clarified an existing 2005 version in order ‘to ensure that investments made by overseas persons in New Zealand will have genuine benefits for the country’. (PDF)
Australians are exempt from the ban.
The Canadian prohibition potentially affects the Communist Chinese Party’s apparent monopolisation of markets in the country, and beyond.
According to Fortune Builders, ‘Chinese homebuyers made up nearly one-third of Vancouver’s real estate market during 2015.’
‘In the United States,’ Fortune Builders recounted, ‘Chinese investments for real estate properties in 2015 skyrocketed from just $4.1 billion in 2009 to almost $29 billion.’
The CCP’s monopolisation of markets in Canada, New Zealand, America, the UK, and Australia appear to be a driving factor no one dares speak of, for fear of appearing racist.
This is despite the CCP’s domestic xenophobic land-lockout to any foreigner looking to buy homes or investment properties in a country of 1.4 billion – as explained above.
There is substantial proof of CCP influencing Australia’s residential market.
In 2016, two years before NZ’s ‘live here, to buy here law’ was enacted, an analysis from the Reserve Bank of Australia declared:
‘Interest in property from [non-resident] Chinese households, institutional investors and developers is not unique to Australia; they are also active in the property markets of other countries, such as the United States, the United Kingdom, Canada and New Zealand.’
The 2016 RBA report added:
‘Non-resident Chinese buyers own only a small portion of the Australian housing stock, but industry contacts suggest that they account for a significant and increasing share of purchases.’
Covid cronyism over-inflating the market aside, the 2016 RBA report suggests they (and the government) knew about what could amount to a CCP land-grab, stating:
‘In New South Wales and Victoria, China [was]/is the largest source of approved investment in (residential and commercial) real estate and its share of total approvals is growing.’
The report even laments any possible retraction of the CCP’s hand in the market by way ‘a sharp economic slowdown in China’ which could deflate house prices.
In other words, the RBA wanted more CCP investment in residential land to stop prices from stalling or becoming stagnant.
According to the RBA (and remember this was stated in 2016):
‘If a significant subset of buyers reduces their demand sharply, this can weigh on housing prices, and Chinese buyers are no exception to this given their growing importance in segments of the Australian market.’ (PDF)
Fast forward to 2022, Australia’s housing market is now deemed unsustainable by the REA at current prices.
The RBA’s 2016 report shows that they knew, and even encouraged the housing bubble by cheering on the CCP flooding the Australian residential market with non-resident buyers.
Having contributed to the bubble, the RBA’s interest rate rises ‘to curb inflation’ and trigger a ‘market correction’ in Australia’s residential arena is ‘too little, too late’.
It’s a desperate attempt to stop, what is an unstoppable freight train, if foreign buyers (particularly the Chinese Communist Party) are not frozen out of Australia’s residential market.
With CCP investors locked out of NZ and Canada, those ‘investors’ will look to vulnerable, more narcissistic nations, such as Australia.
A country too concerned with appeasing the globalist agenda, and too blind to the consequences of its lust for the CCP dollar.
A country that’s given up on its history and Christian identity, largely thanks to apathy and self-hatred taught by Woke, fifth column, neo-Marxists, whose ‘us versus them’ poison sabotages the land of the ‘one and free’.
If Australia doesn’t implement a similar live here, to buy a house here policy, the housing affordability crisis is likely to increase, regardless of interest rates, and any government program promising a taxpayer-funded fix.
There are also national security issues to be considered.
In 2021, the Japanese government linked economic activity and national security, embarking on a quest to tighten restrictions, citing concerns over ‘a movement of increasing land purchase by foreign capitals such as China’.
More recently, reported Nikkei Asia:
‘A company with close ties to Chinese money had acquired a piece of land (a former golf course) in Hokkaido roughly 35 km away from a Japanese Air Self-Defence Force radar site.’
Hokkaido is an example of these geo-political concerns, explained Nikkei.
‘China has long recognised Hokkaido as a prize jewel of the North Pacific Island chain.’
The CCP, Nikkei Asia added, has ‘strengthened its economic influence in the area for decades and is today increasing its military cooperation with Russia’.
According to AsiaLink Business, within ethnocentric Communist China itself ‘no foreigner can currently own land in China, and home ownership for those living in China is under review’.
China’s foreign ownership policy is simple, said Beijing lawyers Lehman, Lee & Xu, the socialists own all the land.
While other entities can acquire rental rights from the state, ‘municipal land is subject to government ownership, and land outside cities is subject to collective ownership.’
Canada, and New Zealand’s responses are the right ones. Australia should adopt a similar policy.
The Prohibition on the Purchase of Residential Property by Non-Canadians, doesn’t just echo New Zealand’s policy, the pro-citizen home-ownership bill reflects Denmark’s strict you must live here, to buy a house here, rule, which states:
‘Unless you have a fixed or permanent home in Denmark, or you have had residence in Denmark for at least five years, you must have permission from the Department of Civil Affairs to acquire real property in Denmark.’
First published on Caldron Pool
Got something to add? Join the discussion and comment below.
Get 10 issues for just $10
Subscribe to The Spectator Australia today for the next 10 magazine issues, plus full online access, for just $10.
Comments
Don't miss out
Join the conversation with other Spectator Australia readers. Subscribe to leave a comment.
SUBSCRIBEAlready a subscriber? Log in