As Canada’s luxury home segment continues to grow, a new survey from Royal LePage suggests most realtors believe it’s due to buyers from China, and one realtor says foreign buyers are a “significant” factor driving up prices in Vancouver.
“The typical luxury property buyers in Vancouver are affluent, business-oriented and well-educated couples, and the region will always be one of the most sought-after in the world,” says Jason Soprovich.
Beyond that, 95% of B.C. realtors believe China is one of the top three countries in which foreign buyers originate.
Nationally, More than half of real estate agents surveyed cite China as the main international region generating home purchases in the country, and another 60% predict more foreign buyer activity this year.
A quarter of realtors believe foreign buyers could be snapping up as much as 25% of Canada’s luxury properties.
President and CEO of Royal LePage Phil Soper notes, however, that while the impact foreign buyers have on Canada’s housing market as a whole is still minimal, it’s growing.
“Canada’s stable political and financial systems, along with a tradition of cultural tolerance and openness to immigration and diversity, make our country an ideal destination for wealthy international purchasers looking to invest in real property. Recently, a lower Canadian dollar has made this proposition even more attractive,” he says in a release.
And those surveyed agreed. Luxury real estate purchases in Canada have increased since January of 2015, according to nearly 70% of realtors, and they believe that’s in-line with the long-term trend.
In some of Vancouver’s most luxurious neighbourhoods, such as West Vancouver and Point Grey, prices have increased 135% from 2005 to 2015.