Vancouver is one of the top three places chosen by Asian shoppers to purchase a second home, the other two being London, UK, and the Australian coasts. Colliers International, a global real estate brokerage firm, reports that their property department alone turned over more than 1.3 billion Yuan in property investments by Chinese investors in the first half of 2011, which amounts to nearly $200 million CAD.
The increased demand automatically causes the prices of houses, condos, and even lofts in Vancouver and Greater Vancouver to appreciate, which is great for those of us who already own property in the region. However, unless we understand what prompts Chinese investors to spend their money on and invest in Vancouver forhouses, we will not be able to make our own informed purchase decisions. Will this financial influx last? Might investors decide to sell in mass in the future? In other words, does it make sense for locals to invest in Vancouver properties as well?
The Vancouver house market has a distinct advantage over the rest of Canada. It’s captured in the much-repeated phrase “location, location, location.” The proximity of the east coast to Asia makes it a prime location for property investors from that continent.