Chinese Investors Driving Up Metro Housing Prices

[Vin]

Originally Posted by jhausner

Likely. That isn't just the London model but holds true in many European cities. North America is behind the times in this regard. That's just what seems to happen in big cities as they grow and housing stock is finite.

I think Vancouver is a bit special on the price amount given what is really happening is you have people embezzling money through West Vancouver and Point Grey and ultimately that is driving the rest of the market up. Really the government needs to deal with all the illegal money laundering first but they don't want to because it will likely crash the market.

That said, it will _likely_ have a correction, but how much is still up for debate. If you say correction long enough you'll eventually be correct. That's just the nature of the pricing cycle.

I think locals just can't fathom the fact that a city with a relatively small population in one of the largest countries in the world has land prices which are so out of reach. Plus of course locals are brainwashed to think that owning a single family house is the only way to be normal. Vancouverites tend to compare housing prices with other cities in North America, especially the supposed "richer" neighbour down south, not realizing that they are comparing to a country which is essentially broke.

[logicbomb]

Originally Posted by Vin

I think locals just can't fathom the fact that a city with a relatively small population in one of the largest countries in the world has land prices which are so out of reach. Plus of course locals are brainwashed to think that owning a single family house is the only way to be normal. Vancouverites tend to compare housing prices with other cities in North America, especially the supposed "richer" neighbour down south, not realizing that they are comparing to a country which is essentially broke.

No, I was brainwashed to believe that hard work and dedication could allow me to purchase an apartment or townhome. I just missed the boat and my dreams have all but evaporated barring an unlikely "crash." My dream of staying in the City was dashed, and now it's becoming somewhat of a mirage trying to stay within the Metro Vancouver area as rent continues to reach ridiculous levels due to those waiting for the elusive crash.

[retro_orange]

Originally Posted by logicbomb

No, I was brainwashed to believe that hard work and dedication could allow me to purchase an apartment or townhome. I just missed the boat and my dreams have all but evaporated barring an unlikely "crash." My dream of staying in the City was dashed, and now it's becoming somewhat of a mirage trying to stay within the Metro Vancouver area as rent continues to reach ridiculous levels due to those waiting for the elusive crash.

You and me both man. I just wanna be able to plant things in the ground and have a workshop for my business, i don't need anything very big. But even a townhouse is out of my reach unless i go to Mission or Chilliwack where my target market is diminished. Also local family history makes it hard for me to just abandon Vancouver but i feel i have no choice if i want to get my life going.

[s211]

Originally Posted by logicbomb

it's becoming somewhat of a mirage trying to stay within the Metro Vancouver area as rent continues to reach ridiculous levels due to those waiting for the elusive crash.

I don't follow your logic.

[logan5]

Chinese investors taking over Europe...

http://www.numbeo.com/property-investmen...y2=Vienna&tracking=getDispatchComparison

http://www.numbeo.com/property-investmen...Stockholm&tracking=getDispatchComparison

http://www.numbeo.com/property-investmen...=Helsinki&tracking=getDispatchComparison

[logan5]

Jesus. Look at Paris! Maybe our Paris correspondent can fill us in on the Chinese investor problem in Paris.

http://www.numbeo.com/property-investmen...y1=Vancouver&country2=France&city2=Paris

[Klazu]

In most of the Europe it is not the Chinese investors taking over countries. Helsinki for example sees very, very little Chinese investments. Rich Russians used to have a small impact on the market, but not for the past two years anymore. In Stockholm housing prices are being driven up by rapidly increasing population and I would think this is also the case in Vienna.

A very different situation to ours, I would say, but those are also ridiculously expensive cities for what they are.

[logicbomb]

Originally Posted by s211

I don't follow your logic.

The rental market is being fueled by those who are leary of investing or those who have recently cashed out and are keen on renting. Vacancy rates in Surrey and Coqutilams have rapidly dropped...This summer is set to be the lowest ever.

You are bidding to RENT a place in Coquitlam and there have been a few cases where renters are offering "move in" bonuses to secure their rental unit.

Originally Posted by logan5

Foreign buyers must be taking over Surrey now because it has become out of reach for locals. I'm not too familiar with Surrey, so I'm not sure which parts of are made up of rich Chinese (who are surely responsible for driving up housing costs in Surrey)

For someone who has been gone for 4 years, this must come as a shock. Housing prices are surpassing the 1 mil mark and townhomes are the price that houses used to be several years ago.
http://www.rew.ca/properties/areas/surrey-area-bc

[whatnext]

Originally Posted by logan5

Jesus. Look at Paris! Maybe our Paris correspondent can fill us in on the Chinese investor problem in Paris.

http://www.numbeo.com/property-investmen...y1=Vancouver&country2=France&city2=Paris

Methinks the laddie doth protest too much.

[Kisai]

Originally Posted by whatnext

Methinks the laddie doth protest too much.

France is one of the few countries where the wages have gone up since 1976 adjusted for inflation. Though, also consider that France has less productivity due to how their labor market works.

BC and Alberta actually have negative wage growth.

(article source: http://www.huffingtonpost.ca/2016/04/04/...growth-earnings-shrinking_n_9611794.html )

So we're reaching a point where property and rent prices far, far outstrip the ability for anyone to to stay in the market and we're far overdue for a real estate crash.

[WarrenC12]

I'm surprised Alberta is so low on that list. It seems like Alberta is (was) the place where you could get paid 20-25% more than here for the same job simply due to demand. They have very well paid teachers, nurses, etc.

[whatnext]

Originally Posted by s211

I don't follow your logic.

I think he's referring to the fact that the vacancy rate is so low because people who would have been able to buy before are now continuing to rent rather than enter such an overheated market. As a result of such high demand, rental rates are rising rapidly.

[Vin]

Originally Posted by Kisai

France is one of the few countries where the wages have gone up since 1976 adjusted for inflation. Though, also consider that France has less productivity due to how their labor market works.

BC and Alberta actually have negative wage growth.

(article source: http://www.huffingtonpost.ca/2016/04/04/...growth-earnings-shrinking_n_9611794.html )

So we're reaching a point where property and rent prices far, far outstrip the ability for anyone to to stay in the market and we're far overdue for a real estate crash.

The chart doesn't mean that locals already in union jobs or other professional fields have their wages cut. Don't think many of the new immigrants coming into Vancouver actually make big bucks, in fact, many are exploited for cheap labour. There are others who simply don't work as they are either with wealth or born into it. Therefore I'm not surprised that BC has negative wage growth.

[Vin]

Originally Posted by logicbomb

No, I was brainwashed to believe that hard work and dedication could allow me to purchase an apartment or townhome. I just missed the boat and my dreams have all but evaporated barring an unlikely "crash." My dream of staying in the City was dashed, and now it's becoming somewhat of a mirage trying to stay within the Metro Vancouver area as rent continues to reach ridiculous levels due to those waiting for the elusive crash.

Yup, you just said it, you missed the boat. Hardwork and dedication do pay off, but you have to be smart about where you put your money. What is happening here is hardly a Vancouver phenomenon. It`s happening in NY, SF, London, HK, Singpore, Melbourne, you name it.

There used to be a time when things were relatively cheap in this city and you could buy locally and then wait for property prices to gradually appreciate. Today, you can forget about that: mentality needs to change. Today, folks not already in the market should rent here and invest elsewhere else, somewhere that property prices are increasing more than here, then sell later to buy back home. Why do you think foreigners have been investing in Vancouver for so long? That's because they have the guts to brave the risk of investing elsewhere and offshore, may it be property: in somewhere cheaper than their own backyard, and places where there is good potential for land appreciation, or seek out other business ventures. I find that sheltered locals are too confined at home, with most scared to invest outside their own city limits. With a lack of business acumen, plus having the kind of government that relies on quick-fix solutions: attracting FDIs and wealthy immigrants, it`s no wonder why we can`t compete.

But of course, keep blaming the Chinese investors and hope for the crash. Good luck to that.

[logicbomb]

Originally Posted by Vin

Yup, you just said it, you missed the boat. Hardwork and dedication do pay off, but you have to be smart about where you put your money. What is happening here is hardly a Vancouver phenomenon. It`s happening in NY, SF, London, HK, Singpore, Melbourne, you name it.

There used to be a time when things were relatively cheap in this city and you could buy locally and then wait for property prices to gradually appreciate. Today, you can forget about that: mentality needs to change. Today, folks not already in the market should rent here and invest elsewhere else, somewhere that property prices are increasing more than here, then sell later to buy back home. Why do you think foreigners have been investing in Vancouver for so long? That's because they have the guts to brave the risk of investing elsewhere and offshore, may it be property: in somewhere cheaper than their own backyard, and places where there is good potential for land appreciation, or seek out other business ventures. I find that sheltered locals are too confined at home, with most scared to invest outside their own city limits. With a lack of business acumen, plus having the kind of government that relies on quick-fix solutions: attracting FDIs and wealthy immigrants, it`s no wonder why we can`t compete.

But of course, keep blaming the Chinese investors and hope for the crash. Good luck to that.

You mean, folks that are not in the market should RENT AND INVEST elsewhere because the reality is that you aren’t getting anywhere while dropping 1.5k+ for rent here. That's already 40%-80% of peoples paychecks here just on RENT.

The ideal plan would be to move elsewhere and save up to invest here but the price of 1+ mil homes will become commonplace by the end of the decade. Likewise, apartments and townhomes will be reaching near 1mil anywhere west of Langley.

There is no stopping the tsunami of foreign capital. Truth is that CANADIANS will be forced to migrate out of the City as they cannot compete with the transnational elites (mostly from Asia) and their shaddy source of money. I can wholeheartedly blame the Asian Investors.

[Migrant_Coconut]

Originally Posted by Vin

Yup, you just said it, you missed the boat. Hardwork and dedication do pay off, but you have to be smart about where you put your money. What is happening here is hardly a Vancouver phenomenon. It`s happening in NY, SF, London, HK, Singpore, Melbourne, you name it.

Funny thing about Britain, Hong Kong, Singapore and Australia: they also recognize foreign ownership as part of the problem, and they are fed up. It's only BC that lets speculators in, since Victoria loves the donations... also, because we're too broke to exist without them.

[csbvan]

Hey guys! Us and our "freak show" real estate market is now a BBC Business segment. So much publicity these days, Tourism Vancouver must love it...

http://www.bbc.co.uk/programmes/p03vcz5j

[Metro-One]

Yep, I am seeing stories about it pop up on my facebook from friends from around the globe (many of them with no connections to Vancouver). The secret is out, and Vancouver's reputation is getting damaged.

Still love the deniers (some of whom are obviously in the 1% and / or have a direct connection to one of the major causes of the problem that we all know).

I am not sure if they are denying knowingly because they have so much to gain from the problem, or if they really are that disconnected from reality due to their wealth position.

[Stingray2004]

Obviously all kinds of fallout thereto. Here's a completely different angle from Bloomberg News this morning:

Bloomberg

Canada’s ‘Sunshine Coast’ Radiates Confidence on Housing Boom

Greg Quinn

May 24, 2016 — 7:00 AM PDT

British Columbia’s record consumer sentiment leads country

National sentiment on jobs, real estate rise in Nanos poll

Canada’s westernmost province is proving to be a bastion of confidence.

Consumer sentiment in British Columbia rose to the highest on record last week, according to telephone polling by Nanos Research. The outlook for real estate prices and the economy is buoying optimism in the province, whose so-called Sunshine Coast stretches for 180 kilometers (112 miles) northwest of Vancouver.

British Columbia took over as Canada’s fastest growing economy last year, and now has the county’s lowest unemployment rate. Currency depreciation is stoking lumber exports and enticing film crews and technology firms to the area. The picture stands in contrast to the rest of the country, parts of which are dealing with an oil-price shock and stagnant global demand for manufactured goods.

British Columbia’s confidence index rose for a fifth straight week to 67.1, the highest in Nanos data back to 2008.

http://www.bloomberg.com/news/articles/2...oast-radiates-confidence-on-housing-boom

[whatnext]

Originally Posted by Stingray2004

Obviously all kinds of fallout thereto. Here's a completely different angle from Bloomberg News this morning:


http://www.bloomberg.com/news/articles/2...oast-radiates-confidence-on-housing-boom

Classic bubble euphoria.