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Vancouver’s foreign buyers, scared off by a 15 per cent tax additional property transfer tax that only applies to them, appear to be making their way to Toronto, according to a new report.

But Diana Petramala, the economist with Toronto-Dominion Bank, who wrote the note out Friday, says the impact on Toronto is no where near what was happening in Vancouver. Canada Mortgage and Housing Corp. said at the peak up to 20 per cent of buyers were foreign until the tax went into effect on Aug. 2 in Vancouver.

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“The million dollar question now is whether foreign investment has shifted east and Toronto has become the new Vancouver. With record immigration in 2016 and the strong growth in prime first-time homebuyer population, the fundamental factors supporting housing activity appear stronger in Toronto than Vancouver – helping drive existing home sales and prices up,” said Petramala. “Having said that, the sales-to-population ratio in Toronto has risen sharply recently, suggesting that foreign investment and speculation are playing a part, albeit likely smaller than in Vancouver.”