Housing Prices in Vancouver Soar as Chinese Park their Wealth in Canada
Soaring Prices: The season’s home purchase just shot up and it resulted in soaring prices in the real estate market. These hefty price tags are surprisingly a sign of China’s ever-growing wealth, revealed by one of the most unexpected sources, a Chinese state-run daily.
Why Such A Havoc? Reportedly, China wishes to move out money of the nation into any immovable assets, particularly homes, as it tightens the screws regarding ownership of homes by the local Chinese. In essence, they wish to condense their own market. The market experts are now getting more apprehensive regarding the housing market of Vancouver, as it has now become the 3rd most expensive in the entire North America.
Astonishing Statistics: The market was made dense by a hefty chunk of buyers in the very first quarter. The Richmond and Vancouver West regions were the epicenter. The sales oozed off a bit in the month of April, but soon a new benchmark of nation average price was set as C$620,000. This is a direct 5 per cent increase from the previous national average of C$593,419. The mean sales prices sore up to C$372,544 whilst for residential property prices touched a new high of C$815,252.
What is China Doing? “China is in a way parking their wealth, in the Canadian property market”, Cam Good - the president of TheKey.com has disclosed. As recession began to subside, Canada recovered significantly and comparative better than its close neighbors did. The real estate market received a blow but never collapsed. The prices rose again. Vancouver is now the most sought after market for property in the entire Canada.
The Chain: “China invested its wealth in markets of countries such as England and Australia before it entered Canadian cities such as Toronto”, said Scott Brown, senior VP at property brokers Colliers International. According to Colliers International, ‘this is just the initiation of the phase.’ Furthermore, Chinese have now given a rise to ‘the Domino effect.’ Similar boost in property purchases are now being experienced in areas such as New York and the buyers happen to be the Brazilians.
Magnitude of Buying: “The Chinese property buying is somewhat overstated because they have only bought properties in areas that are near the Vancouver boundaries”, clarified British Columbia Real Estate Association’s main economist Cameron Muir. The records justify the same as highly as the media hype being created for it. Plus, Canada can expect more competition as other nations are striving to attract investments from China.
No FII Blockade: ‘Even after such a situation Canadian officials aren’t thinking of restricting any foreign investments in the land or property markets. This will not just affect the entire economy but will also affect the goodwill of Canada in perception of the rest of the countries’ disclosed by Mr. Ashley. He further added, “I’d live in a place envied by others…”