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Canadian Prime Minister Justin Trudeau blamed Asian buyers for Vancouver’s housing crisis.Overseas money coming is playing a role in Canada’s housing affordability crisis, Prime Minister Justin Trudeau said Friday.

“We know that there is an awful lot of capital that left Asia in the past few years,” Trudeau told CBC Radio host Stephen Quinn on Friday morning in Vancouver.

“This reminds me of the challenges around the Hong Kong handover, where we saw in Yaletown all these new buildings come up after Expo 86, and then nobody was living in them because they were all bought as investments and insurance around the handover.”

“We are all hoping to stabilize the market,” he said. “We are on a trajectory that doesn’t have any good outcome.”

But when pressed for specifics on what he could do, Trudeau said the federal government needs to move cautiously to avoid taking action that could negatively affect other regions.

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“We need to make sure that any action we take is not going to make the situation worse. The law of unintended consequences is very, very present in housing markets,” he said.

“As a federal government, levers we use here in Vancouver and perhaps Toronto could have extremely negative impacts on housing markets in Calgary or Montreal or Halifax,” he said.

“We need to make sure that we are reining things back a little bit in a way that doesn’t completely devalue those people whose equity is still in their homes. ”

Source: http://www.cbc.ca

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