Strong signs are appearing that Metro Vancouver’s real-estate balloon has indeed been pricked by China’s heightened capital controls.
Demand for multi-million dollar dwellings in Metro Vancouver is falling. “All the high-end stuff is sluggish,” says Vancouver realtor-analyst Steve Saretsky.
Sales volumes and prices on detached houses are especially dropping on the west side of Vancouver, in Richmond and in West Vancouver, where Mainland Chinese buyers had been active buying and building mansions.
Real Estate Association of Greater Vancouver figures show the median price of a detached home is down more than $500,000 since February, to $1.7 million.
Veteran Canadian real-estate data analyst Stephen Punwasi also has little doubt “Chinese capital is having a tougher time getting out of China” since leaders introduced tighter controls in January.
“Vancouver locals selling $3 million bungalows are going to have trouble finding an alternative to foreign urban land buyers, so prices need to be slashed,” Punwasi said.
– from ‘Is China bursting Vancouver’s housing bubble?’, Douglas Todd, 6 Oct 2017 [hat-tip to ‘The (indefatigable) Auteur’]
Pretty strong stuff for the Vancouver Sun.
This must give speculators (all buyers) pause.
23% down in 6 months? Gee.
Will anybody buy at these prices if they anticipate/fear future flat or decreased prices? We’d guess not, but we’ll have to wait and see how many “bargain hunters” step up to “buy the dip”.
Please see the last post for our discussion of why this is arguably an important juncture.
PS and BTW: The Auteur also kindly referenced a G&M article on how the BC NDP has essentially been petrified when it comes to promised housing action; in this regard we’d say this: No government can legislate or plan BC out of a gigantic speculative bubble in housing prices. There is no way to do that. Prices have become way too far removed from those determined by simple utility. The only way out is by a price crash (with no bailouts or any other silliness). That will solve the problem for a generation.