A yearly trend, which sees considerable amounts of Chinese investor's arriving at Canada to buy property has numerous Vancouver real estate experts bracing themselves for the next busy Lunar New Year. This anticipation continues to be peaked of late due to heightened restrictions on Chinese property investment. With this particular brings high expectations how the first few months of 2012 will probably be injected with more activity in the local Vancouver housing market.
Research has revealed that the Chinese still develop an insatiable appetite to call home and purchase property in cities in and beyond China. China's National Bureau of Statistics revealed that for the first time, the number of city-dwellers outnumbered those invoved with rural areas. The most recent figures for 2011 show 51.Three percent of China's population reside in urban areas.
Real Estate is the reason nearly 13 percent of China's booming economy and contains had few signs and symptoms of slowing down with growth estimated at 28 percent a year. This has lead to many economists to require regulations stating that the numbers are unsustainable and so are creating an unbalanced housing industry.
The benefits of having a red hot real estate market, is that property prices have allowed for the government to spend exorbitant amounts of money. But as provinces and local municipalities sell land and use land for large loans, economist have raised concerns of an emerging debt crisis just like that of the US and Europe.
In order to address these concerns, some new government restrictions including higher deposit and restrictions on multiple owning a home, has seen overall purchase of property decrease. The slowing of the Chinese housing market has been around large part intentional, particularly in the fastest growing urban property markets as with Shanghai and Beijing.
The cooling market and a larger than expected drop in exports happen to be the two large influences on the slowdown of the Chinese economy. Purchase of property in China fell to 12.3 % in December from 20.One percent in the month of November.
With quite a bit of capital and a thirst for investment opportunities, many Chinese investors are already turning their awareness of the Vancouver market. The Real Estate Board of Greater Vancouver reported gains in the detached housing market in areas including Richmond and Vancouver West well over 56.2 percent and 70.9 percent in the last three years. These two areas and a growing quantity of surrounding markets are fuelled from the increasing number of foreign investors with quite a bit of capital.
Julia Lau, a Chinese real-estate specialist at Sotheby's International Realty Canada believes how the efforts by the Chinese government to restrict home purchases in China are pushing investors to check abroad to places like Vancouver. Along with Beijing and Shanghai's valuation on properties, Vancouver continues to be an attractive alternative.