The Chinese Influence on Vancouver's Real Estate
What's driving investment this time around?
Sheer numbers, for a start: a new class of wealthy entrepreneur is emerging as China increasingly embraces a market system and generates formidable economic power. A crazy stat for you- To Chinese in the top two or three percentile of income-a number equal to the population of Canada-the savings required to buy a Vancouver home are not out of reach.
Canada's immigration system, for another: for wealthy Chinese, our country is one of the easiest places to emigrate to, and within it Vancouver is by far the preferred place to land (The Rampf family did not find it that easy- must have something to do with the lack of millions of dollars in our bank accounts). Throw in recent laws that prevent Chinese citizens from owning more than two condos in China and greater ease in getting money out of that country, and you have the formula for another influx of Chinese money to Vancouver.
What are the Chinese Looking for?Good schools, proximity to YVR, distance from cemeteries—these inducements are well known.
LEVEL LOTS- New immigrants are often drawn to West Vancouver, says another West Side Realtor. But, concerned that Mom and Dad might fall on an icy hill, they rarely end up buying across the bridge.
DESIGN RESTRAINT- Impress friends or fit in with the neighbours? The easiest homes to sell are traditional on the outside, more contemporary within.
FENG SHUI- Six decades of living under Communism have not dimmed the belief that money will scamper out of the house if the stairway descends toward the front door.
LOW-LABOUR GROUNDS- Gardening and outdoor entertaining are unlikely to form a central part of a Chinese immigrant's lifestyle. They prefer a low maintenance garden, the more work, the more likely everything “green” will be dead before the end of the season.
MADE IN CANADA NOT CHINA- a cheaper door made in China will be discounted in the price of the offer. A well-made solid door from BC wood is worth the money.
LOT SIZE- The lot needs to be full size and BIG (over 40 feet wide and at least 120 feet deep). These lots cannot be built that easily in Vancouver…
Are Vancouver House Prices Inflated?
As steep as Vancouver prices seem in the North American environment, they are fairly typical by global standards. Based on the affordability rankings of some 400 cities, Vancouver’s index of 9.07 (referencing the number of years it takes for someone earning an average income to purchase an average-priced property) is near the median.