In order to improve affordability for residents, the city of Vancouver has implemented a 15% tax rate for foreign buyers. What might the impact of shifting foreign capital look like? Based on reports in the media, the foreign investment market in Vancouver last year was about $900m. If the average price of a detached home in Toronto is $1m, that’s 900 transactions or less than 1% of the volume of over 100,000 unit sales across the GTA last year that were conducted through the Toronto Real Estate Board. There may be some impact on very niche markets such as Rosedale/York Mills, but overall we likely won’t see much of an impact from the perspective of raw sales. Perception on the other hand of a “red tide” of capital flowing in may drive prices up in the short term. We shall have to wait and see.