A yearly trend, which sees large amounts of Chinese investor's coming to Canada to buy property has many Vancouver real estate experts bracing themselves for another busy Lunar New Year. This anticipation has been peaked of late because of heightened restrictions on Chinese property investment. With this brings high expectations that the first few months of 2012 will be injected with more activity in the local Vancouver housing market.
Research has shown that the Chinese continue to develop an insatiable appetite to live and purchase property in urban areas in and outside of China. China's National Bureau of Statistics revealed that for the first time, the number of city-dwellers outnumbered those in rural areas. The latest figures for 2011 show 51.3 percent of China's population live in urban areas.
Real Estate accounts for nearly 13 percent of China's booming economy and has had few signs of slowing down with growth estimated at 28 percent a year. This has lead to many economists to call for regulations stating that the numbers are unsustainable and are creating an unbalanced housing market.
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 similar to that of the US and Europe.
In order to address these concerns, a series of new government restrictions including higher down payments and restrictions on multiple home ownership, has seen overall investment in property decrease. The slowing of the Chinese housing market has been in large part intentional, especially in the fastest growing urban property markets like in Shanghai and Beijing.
The cooling real estate market and a larger than expected drop in exports have been the two large influences on the slowdown of the Chinese economy. Investment in property in China fell to 12.3 percent in December from 20.1 percent in the month of November.
With large sums of capital and a thirst for investment opportunities, many Chinese investors have been turning their attention to the Vancouver real estate market. The Real Estate Board of Greater Vancouver reported gains in the detached housing market in areas such as Richmond and Vancouver West upwards of 56.2 percent and 70.9 percent in the last three years. Both these areas and a growing number of surrounding markets are fuelled by the increasing number of foreign investors with large sums of capital.
Julia Lau, a Chinese real estate specialist at Sotheby's International Realty Canada believes that the efforts by the Chinese government to restrict home purchases in China are pushing investors to look abroad to places like Vancouver. And with Beijing and Shanghai's valuation on properties, Vancouver has been an attractive alternative.
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