Chinese buyers have been acquiring property in Canada and Australia since 2016, but now they are taking a break. Notably, Vancouver’s Real Estate Market could be the next to crash as a result.
The plummeting prices of these properties are due to two factors: stricter capital controls and an economic slowdown in China.
China has announced that it will stop providing mortgage loans to those who do not have at least 40% down payments for their home purchases.
Vancouver’s Real Estate Crash might happen soon because of China’s slowing economy. China’s new mortgage policies are stopping many people from buying homes which ensures that the market stays saturated with sellers and therefore lowers the prices of housing.
Anders Lee, a data analyst for Fairfield Residential said, “I think it’s a no-brainer that prices are going to come down. It’s just too much of the product being delivered at one time.”
Statistics show that 2016 has seen a decline in the price of homes all around Canada. This is because of China’s economic slowdown and stricter capital controls; this has caused a decline in housing.
The tightened loan policy will stop many people from buying homes and therefore it means that the market will stay saturated with sellers, which means prices for housing will go down.
There has been a decline in price for properties all around Canada because of China’s economic slowdown and stricter capital controls. The tightened loan policy will stop many people from buying homes which means the market will stay saturated with sellers, meaning prices for housing will go down.
This shows that China’s economic slowdown and securities are putting a burden on their real estate market because many investors are moving elsewhere to invest their money.
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