The numbers – most notably, a 32.5 per cent slide in September sales compared to last year – already suggest interest on the part of foreign investors is waning, say analysts. They point to buyers who have been credited, or blamed, for double-digit value gains over the two years.
But new analysis is identifying the reasons behind their about-face, at the same time it suggests they may be slow to come back to the market.
In fact, says one China economist, slowing GDP growth back at home means that many investors in Vancouver are now looking to sell up their properties rather than buy new ones. It’s the chief reason behind the growth in listings even as sales slow.
Currently, the Vancouver market has changed to the point where Chinese speculators, who used to trade high-end property, are primarily selling, but not buying, said Jamie MacDougal of Sotheby’s International Realty.
Quite simply, the Chinese economy is coming off its boom, with annualized growth to fall to 3 per cent gains next year, from the 7.5 per cent logged for 2012.
The pullback from Vancouver is expected to further ease prices in Canada’s priciest market, something local buyers welcome.
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