Trending
A red, white, and black flag with a white background.

Rapid-fire policy regime harms Vancouver real estate investment

A businessman sitting at a desk with papers and a pen.

Vancouver real estate investment volume is shrinking due to perceived instabilities in the market’s regulatory regime, according to CBRE Ltd.

The successive introduction of new regulations that target foreigners has done no favours for the market in terms of investment. If anything, Toronto is benefiting more from the situation.

“You have policy changes on a snap, on a whim,” CBRE Ltd. executive vice president David Ho told Bloomberg in an interview.

“Investors typically look at stability in a market and this is not stability.”

CBRE figures indicated that from the $1-billion-plus volumes seen in 2016 and 2017, foreign investment in Vancouver sharply declined to just nearly $350 million in 2018.

In comparison, Toronto significantly exceeded its 2017 volume with its $526 million in Asian investment last year.

Speculation levies, a wealth tax on homes, and the recently proposed Landowner Transparency Act scared off a considerable number of foreign capital holders, CBRE added.

Moreover, Toronto’s status as a vital global tech hub – which continues to magnetize millennials and immigrants – has proven to be a major boost for its commercial and industrial property sectors. Many members of the two demographic groups participate in the city’s flourishing tech and financial services market.

“That spells money because young people have to consume, they’re growing families,” Ho explained. “That’s a huge advantage against the Vancouver market, which is more of a retirement market.”

 

About the Author

Ephraim is currently a journalist at Mortgage Broker News, Real Estate Professional and Canadian Real Estate Wealth. Ephraim is a highly accomplished news reporter whose work has been published across North America and the Asia Pacific region. Before joining Key Media, Ephraim spent eight years working as a journalist with Reuters TV. His areas of expertise include real estate, mortgage, and finance. LinkedIn | Email  

Post a Comment

Related Articles

The recent decrease in interest rates by the Bank of Canada by 25 basis points was anticipated by the market and is expected to provide...

The British Columbia government is undertaking significant legislative amendments to bolster protections for renters and landlords in the province. It aims to support tenants dealing...

Most Trending News

The recent decrease in interest rates by the Bank of Canada by 25 basis points was anticipated by the market and is expected to provide...

The British Columbia government is undertaking significant legislative amendments to bolster protections for renters and landlords in the province. It aims to support tenants dealing...

Recent market expectations have significantly shifted towards anticipating greater cuts by the Bank of Canada (BoC). Earlier this year, markets were projecting only a 0.25%...