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What Role do the Chinese have on House Prices in Vancouver?

What Role do the Chinese have on House Prices in Vancouver?

New data is out from realty companies in Vancouver on the luxury housing market, and it will come as no surprise the biggest buyers are flocking in from China. One realty company in British Columbia said over 70 per cent of its clients in 2014 were from mainland China.

The wealthy mainland Chinese are buying into the high-end luxury home market. If you own a home in Vancouver that’s worth under $1 million, you should not expect to see too much interest from the Chinese market here. In fact, the sub-$1 million homes in Vancouver attracted just one in ten of the buyers or interested parties from China.

There was more interest from the Chinese in the mid-range market homes that were on the market for $1 to $3 million. In this range of luxury home, 21 per cent of all buyers were from China. In those homes priced at over $3 million, the Chinese accounted for some 70 per cent of the market.

The data released by MacDonald Realty Ltd offers a new insight into the diversity of those buying into Vancouver real estate. But investment in Vancouver luxury homes from Asia is not actually anything new.

MacDonald has even opened up a real estate branch in Shanghai where Chinese investors can look at the kind of property they might be interested in. But the branch says its China based clients are actually only interested in the high-end properties and the broader real estate prices in Vancouver are not being affected by the Chinese invasion of homebuyers.

So, with that in mind, are those who are blaming foreign investment from China in the Vancouver high-end property market actually getting the wrong end of the stick? In some ways, yes. But then there are those (particularly from the real estate sector) who play down the role of China and its wealthy citizens investing in Vancouver’s luxury housing market. Those voices are not entirely right either.

About 50,000 Chinese millionaires were actively encouraged to invest in Vancouver’s housing industry because of the federal investor programs. And broader house price rises in Vancouver have not occurred solely because of the mass investment the Chinese have put into Vancouver and B.C. as a whole.

Broader house price rises are NOT down to the mass investment in China. But those multi-bedroom, high-end properties and $3 million-plus homes seeing price rises, however are.

Antonia is working closely with Chinese investors to buy luxury properties in Greater Vancouver. Please call 7782382836 for your home buying and selling inquiry.