As housing prices continue to rise in Vancouver, one realtor suggests it’s not all because of foreign investment.
Numbers released by MacDonald Reality suggest in 2014, 70% of homes costing $3 million or more were bought by people from Mainland China.
However, Managing director Dan Scarrow says the participation rate from foreign investors is actually quite low when it comes to the lower 75% of the market.
Scarrow says Mainland Chinese buyers only represented 11 per cent of sales of houses under $1 million.
He says he was surprised by the numbers, saying this shows prices at the affordable or entry level end of the market are dictated more by interest rates and the low supply of housing than by foreign investors.
Sean Leslie spoke with Cameron Muir, Chief Economist for the BC Real Estate Association who says we still don’t have good solid data, and the numbers presented by MacDonald realty are based on the last names of buyers.
“No where do they say this is foreign investment, they’re saying that some people have names connected with China, and in fact when we look in the city of Vancouver, from a a quarter to a third of the people that actually live in the City Vancouver are Chinese. So it’s not really any shocking news to me at all.”