Blog

China's Financial Crisis Could Fuel Rise In Vancouver House Prices

It’s been a historic week on the Chinese stock market, with investors taking a beating in Shanghai.

But the pain has been shared around the world, as markets everywhere have shed value.

 

“Global markets lost a combined 2.6 trillion dollars worth of value. It is the worst start to the new trading year in two decades,” said Robert Levy, a financial analyst at Border Gold Corp.

 

With the Chinese economy faltering, people with wealth to protect are moving it. According to economists, some of that money is landing in Canada.

 

“Canadian housing in a world context is essentially on sale right now,” says Derek Holt, VP of Economics at Scotiabank. He says a 70 cent Canadian dollar is bringing investors into Vancouver’s housing market

 

“Chinese buyers have always had an affinity for Canadian real estate and they are going to continue to buy Canadian housing.”

 

Foreign capital reserves in china are down 120 billion dollars last month alone, and the number going up every month as the government deals with weaker than expected growth, propping up a currency that is drastically overvalued.  

 

According to UBC economist Michael Devereux, some are predicting growth targets in China will shrink to three to four per cent – but if the bottom drops out of the Chinese economy, the influx of cash to Canada could go even higher.

 

“Then all bets are off,” says Devereux.

 

“We will see large amounts of people trying to get out why they still can.”

 

SOURCE< GlobalNews


Newsletter

*indicates required fields.
Name:*
Email:*

Meet the team

  • Will Pratt
  • Justin Sabbagh
  • Mike Wilcox

Mortgage Calculator

Purchase Amount:
Down Payment:
Interest Rate:
%
Payment Interval:
Mortgage Term (Years)
Payment:
Total Payments:
Total Amount Paid:
Total Interest Paid:

Neighbourhoods

The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.