Canada Real Estate Prices Driven Up By Chinese Buyers1 June, 2011, 15:50. Posted by Zarathustra
Tags: Bubble, Canada, Real Estate
Wall Street Journal just now reported that Vancouver housing prices are fuelled by waves of Chinese buyers.
This is, of course, not surprising, as this has been pointed out earlier that Bloomberg has done such report. We have been hearing stories about Chinese buyers buying up properties in Hong Kong. From time to time, we hear stories about Chinese buyers buying up properties in London UK, in the United States, and other places. Vancouver, of course, seems to be one of their favourite.
As the WSJ report points out:
The price rises are especially sharp in the high end of the market, with real-estate agents pointing to a flood of foreign buyers, particularly Chinese. Condominiums are popular, but so are single-family homes, including fixer-uppers that buyers eventually tear down. While there is some speculative buying, Canadian and Chinese agents say Chinese buyers are looking for longer-term investments to diversify their holdings outside of the mainland.
Of course, it once again reminds me of all those stories of the Japanese buyers buying up properties everywhere in the late 1980s, which, of course we now know, did not end well.