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Ontario just started tracking data in April, after it implemented its own tax on offshore buyers in the Greater Golden Horseshoe, which includes Toronto. It found in the months following the change in tax rules, 4.7 per cent of purchasers were foreign buyers for the whole GGH, but in the city of Toronto it was 7.2 per cent.

Edmond Luke, a Vancouver-based partner with Fasken Martineau and head of the firm’s China practice, said the currency factors into the pricing of Canadian assets.

“The ability to predict what the currency trend is, is also an important factor,” said Luke, adding investors are looking at their ongoing “return” and that includes currency gains and losses.

“I think the 15-per-cent tax had its impact but, at some point, the currency takes over and people might not think that tax is a big deal is at its low point.”

That said, Luke doesn’t believe the current drop in the currency will affect foreign investors looking for a safe place to park their money. “It’s not enough to move the needle,” he said.

Phil Soper, chief executive of Royal LePage Real Estate Services, thinks the rising dollar could become a greater drag on recreational property sales.

“Americans are the largest foreign investors in the recreational space here, as we are there. When the (loonie) rises, we see a subtle shift,” he says, adding he doesn’t believe the recent jump in the loonie will affect the urban property market.

On the commercial side, foreign buyers continue to be a major force in the marketplace. Of the $34.7 billion in sales in Canada in 2016, CBRE Canada said $5.6 billion went to foreign interests.

“From a currency standpoint, Asian investors have viewed it as an opportunistic time to invest in Canada and are more concerned about their currency depreciating than the Canadian dollar appreciating. They also have a lot of capital to invest so aren’t overly sensitive to modest interest rate increases,” said Brian Kriter, an executive managing director with Cushman and Wakefield, and leader of the valuation and advisory division for business development in the Americas.

gmarr@postmedia.com

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