Vancouver Real Estate: The China Factor
Vancouver leads with unaffordable housing. Vancouver has the highest housing prices in Canada, the greatest price increases, and the world’s least affordable housing prices, according to recent figures. Some of the most rapid price increases around Metro Vancouver have been in Richmond where the median price for a detached home is $1.16 million as reported at the end of December, 2013. View homes for sale in Vancouver, Burnaby and Richmond.
Over the past 10 years, the rapid price increases for homes in the major city centers around Vancouver were as a result of the influx of mainland Chinese buyers. These buyers are active in many of the region’s other more expensive markets, such as the West Side of Vancouver and the North Shore.
A large number of wealthy buyers from mainland China increasingly are buying properties in the most expansive parts of the city. A market system in China over the past 20 years has generated a large pool of entrepreneurs who make their fortune in manufactured goods that are exported all over the world. For wealthy Chinese, Canada is one of the easiest countries to emigrate to, and Vancouver is by far the preferred place to land. The recent laws that prevent Chinese citizens from owning more than two properties in China, and greater ease of getting money out of China, have resulted in the influx of Chinese money to Vancouver.
Preference for detached homes
Home buyers are attracted to invest and buy detached homes in the major cities around Vancouver. The high prices in the major centers like Vancouver, Richmond and Burnaby spill over to cities further away from the city center. Neighborhoods in East Vancouver and close to Vancouver West are experiencing a huge surge in demand and rapid increase in home prices.
With a the housing market edging towards a more balanced supply and demand at the end of 2013, the market outlook for 2014 has improved. Many housing pundits are predicting the market to remain stable, and for detached homes to continue experiencing strong support. One area of concern in the housing sector is the new condos market. Over supply, weak demand and tightened lending rules could result in many home owners incurring losses, when selling their homes.
If you like to find out the latest market trend and where you can find good deals or foreclosed properties, kindly contact James Wong at 604-721-4817 or email James.