subject: Demand from International Investors and Domestic Buyers to Sustain Luxury Real Estate Market BC [print this page] Author: Kane Wade Author: Kane Wade
Even and yet the new run-up in prices of upper-end properties in British Columbia and the major appreciation in the Canadian dollar have weakened demand for comfort real-estate in the population, the upper-end market still remains quite strong. Demand is coming from several classes of investors and provincial homebuyers who are trading up their residences. The financial reflection, coupled with the repossession in energy, expensive metals, and commodity prices will likely revive demand for upper-end real-estate in the county.
Different zones of British Columbia have seen demand for comfort real-estate from different classes of buyers and investors. In the Greater Vancouver area, upper-end properties have attracted affluent baby boomers and Generation X and Y investors requesting new residences or leisure units. Increasing affluence of the Chinese investors has also produced a major invasion of investment money into comfort real-estate in Greater Vancouver, which has a large population of the Chinese and South Asian refugees. Together with the Chinese, European investors have found their way into the Greater Vancouver upper-end real-estate market. In new years, high prices of energy, expensive metals, and new commodities have rised the affluence of many Canadians, improving domestic demand for comfort real-estate.
In the White Rock - South Surrey area, high-end properties have benefited from inward migration and leisure property demand from out-of-province investors. As it is the case with the Greater Vancouver area, international investors from Mainland China have been quite active in the comfort real-estate market in the area. Notwithstanding the new slowdown in the Chinese economy, demand from the Chinese buyers is likely to remain strong, especially as the total economy stages a comeback.
In the upper-end market in Victoria, old baby boomers, as a rule trading up to more classy units for stepping down, and provincial buyers from Ontario and Alberta have been the most active buyers in the market. The trading-up goings-on has been developed by the new plunge in values of comfort real-estate. This will almost certainly increase as the provincial market moves to more reasonable-market circumstances.
In Kelowna, demand for comfort real-estate has customarily come from the retired persons and the old baby boomers, especially those who have experienced large increases in their net appeal. The vast most of buyers is traveling from Alberta and Vancouver. In the past, international investors, especially Americans, have been a famous energy behind demand rised for upper-end properties in the area. However, the financial dip and the failure of the U.S. dollar have weakened the Americans' curiosity in the comfort real-estate in Canada as a undivided and in Kelowna in particular.
Given the significant appreciation in Canadian lodging values, along with a strong Canadian dollar and the major falling-off in the home prices in many international marketplaces, such as those in the United States and the United Kingdom, comfort real-estate in British Columbia has lost petition among many international investors, especially the American. Some provincial investors, attracted by double-numeral plunge in lodging values in the United States and charged with a major growth in the Canadian dollar comparative to the U.S. dollar have transferred south of the Canadian edge in search of cut-rate U.S. real-estate.
Still, many domestic buyers have remained loyal to the provincial market. As a outcome, marketplaces with a high exposure to provincial buyers, including those from commodity-rich provinces, are likely to resume to experience strong demand. The pulling through total financial goings-on, which has now caused energy and commodity prices to spike to the ultimate level in a year, is likely to give a enhancement to the market in the coming year.
