Why Vancouver real estate prices are so crazy from @moneysense
Vancouver’s real estate market is messed up. It’s really messed up. As a result it’s attracted a lot of attention. From media reports, to provincial scrutiny, to self-regulatory board actions, Canada’s most expensive real estate market is under the proverbial microscope. But what do we know for sure? Here’s a round-up of eight factors that are helping to push prices through the stratosphere in Vancouver and the lower mainland.
No. 1: Foreign buyers
It’s not very Canadian to discuss the impact of immigration, particularly if it’s negative. But the truth is the Vancouver real estate market has felt the impact of foreign money—in particular, money from rich foreigners. Much of this money comes from mainland China. Also not a very Canadian thing to say. But it’s true. How do we know? Because the phenomenon has been tracked, studied and recorded—and not just in Vancouver.
Data collected by David Ley shows how, over the last few decades, metro Vancouver has become similar to other Pacific Rim “gateway” cities, such as Hong Kong, Singapore, London and Sydney. Each of these gateway cities have rising housing costs that are fuelled by high immigration-driven population growth and foreign investors.
Read full story here: http://www.moneysense.ca/spend/real-estate/8-factors-that-really-mess-up-vancouvers-real-estate-prices/