Amid tight election race, Canadian PM Trudeau promises 2-year ban on foreign home buyers

In a bid to revive his prospects after announcing a snap election, Canadian Prime Minister Justin Trudeau on Tuesday promised to introduce a two-year ban on foreign buyers if re-elected to the office.

The PM made the announcement to placate the locals who have been grappling with soaring home prices. The federal elections are scheduled to take place on September 20.

“If you work hard, if you save, that dream of having your own place should be in reach,” Reuters quoted Trudeau as saying at a campaign stop in Hamilton, a fast-growing city outside Toronto.

Housing affordability has become the central theme in this election campaign, as the prices have sky-rocketed during the pandemic.

The surge in the price of homes is largely being attributed to foreign buyers, especially non-residents from China and Hong Kong who have been spending a good amount of fortune in Vancouver real estate.

According to Reuters, the Canadian Real Estate Association’s (CREA) home price index is up 69.7% since November 2015, when Trudeau first took office.

The average cost of a home was C$669,200 ($529,840) in July—a 16% rise from a year ago, according to the CREA.

“We’ll crack down on predatory speculators,” Trudeau was quoted as saying. “

Trudeau’sLiberal's Party of Canadahas also proposed to introduce tax-free savings accounts for first-time buyers and more oversight of the real estate industry to fight money laundering. They’re also vowing to add or repair 1.4 million homes over the next four years.

Banking on a strong response against the COVID pandemic, Trudeau on August 15 called for snap elections. However, recent polls show that the difference between the governing Liberals and the opposition Conservative is narrowing.

According to Nanos Researchpoll, ballot support for the Liberals stands at 32.5%, while the Conservatives are at 31.4%.

Another polling agency Ipsos showed that the Liberals have lost 3 points over a week and now have 33% support nearly the same as the Conservatives, who are at 32%.

Another national poll conducted by the non-profit Angus Reid Institute underscored thestatistical tie, with the Liberals again at 33%, a lead of just 2 points over the Conservatives.

Trudeau’s attempt to garner a parliamentary majority in the September 20 elections is also likely to face further headwinds as the government attempts to tackle criticism over it’s “withdrawal fiasco” in Afghanistan.

According to local outlet Global News, “the first week of the campaign was dominated by criticisms over the Trudeau government’s slow evacuation.”

However, poll experts are of the view that international geopolitics “hardly” play a decisive role in Canadian elections.

(With inputs from agencies)