Quote:
Originally Posted by whatnext
Here’s one big reason why you can’t afford a house kids. From a major media outlet today , so haters read it and weep:
Canadian condo specialist Jordan Scrinko has estimated that, at the peak of Chinese overseas buying, one third of property investments in Vancouver were made by people from China, with a similar figure for Toronto.…[/I]
And before anyone says “that’s just Vancouver and Toronto”, where do you think buyers priced out of those two cities went? Psst, Kelowna, Calgary, Halifax thus bumping up prices there.
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So at most, for a brief time, one guy says a third of property investments in Vancouver were made by people from China. That's a third of property investments, not a third of property sales.
StatsCan research shows that before foreign purchasing bans, and empty homes taxes, 7% percent of BC condos were owned as investments by overseas investors - not just from China. 18.1% were owned by BC residents, 2.6% by out of province investors, and 8.6% by businesses. The rest (the majority) were owner occupiers.
For a few developers of expensive condos, the purchases by Chinese investors helped make a project viable. So now they're no longer in the market, those types of tower are on hold. That means the majority of the potential purchasers, the ones who would have lived there, and the local investors who would have rented them out, are now more likely to buy in less fancy, less expensive projects. That's presumably helping keep prices up for those other projects.
Especially as overall, construction of new condos isn't going up, even though overall housing starts haven't fallen. Westbank have switched to rental projects instead of high end condos, and so have Bosa.
I'd be very surprised if many would-be Vancouver buyers bought a condo in Halifax.