The worldwide lockdown to fight COVID-19 has severely restricted foreign buyers' access to Canadian real estate
The influx of Chinese home buyers in Vancouver has noticeably thinned over the past month, according to a recent RE/MAX analysis.
“With the closing of national and international borders as a response to the pandemic, real estate players within the metro Vancouver market have noticed a marked decrease in the number of Chinese travellers and buyers, particularly around Chinese New Year- a hot time for foreign buyers,” RE/MAX said.
“The restrictions being imposed within China in response to the virus, are having monumental impacts upon their economy, and many of these restrictions have already spread to other countries that are home to other heavy investors in Vancouver Real Estate.”
Prior to the global outbreak, which originated in China’s Hubei province late last year, condos in Canada’s largest cities have been prized targets among foreign home buyers and property investors.
Statistics Canada figures indicated that as of 2017, around 4.8% of homes in Vancouver are owned by non-residents. These assets accounted for 5.1% of the total value of residential property in the region.
Canada Mortgage and Housing Corporation (CHMC) numbers supported this observation, noting that 11% of Metro Vancouver condos are owned by non-residents.
“A key factor in Vancouver’s expensive price tags is the extent of real estate purchased by foreign buyers,” RE/MAX said.
“Considering that the condo market is the segment of the city’s real estate most unbalanced with supply and demand, it is evident that offshore buying is having a profound impact on the market, and on home prices.”