A Canadian Luxury Real Estate Push Is On (A Repost of Spring 2013 Article)

(March 07, 2014 , posted in Metro Vancouver Fraser Valley Market Updates)

THE BC HOME HUNTER GROUP - SPRING 2013 MARKET UPDATE

A CANADIAN LUXURY REAL ESTATE PUSH IS ON

A recent report by British based Real Estate firm Knight Frank is a near carbon copy of the reports by The BC Home Hunter business manager and analyst Robert Pybus. Canadian Luxury Real Estate will be set for a boost in 2014 from an increasing number of wealthy individuals around the world, that will push up the demand for luxury real estate, making high-end properties in Vancouver increasingly valuable.
The report and Robert's analysis state that over the next 10 years there will be 50% more people with net assets worth more than $30m US – this translates into around 286,000 people.
Emerging markets in Asia and Latin America will see the most growth of the wealthy, and China’s wealth population is expected to more than double over the 10 year period.
According to the study, in Canada, we will see a rise of 35% over the decade to around 6,640 individuals, centered mainly in and around Toronto.
As we see the number of wealthy individuals increase, as a result, we will see an increased demand for luxury real estate in desirable areas like Vancouver. Supply of luxury Real Estate is unlikely to spike, and as a result we will see upward pressure on the prices of these assets, despite the recent softness.
Andrew Hay, the head of global residential property at the London based firm Knight Frank highlighted that the current weakness in Vancouver’s Luxury Home market is probably a temporary one and as Robert forecast states, Vancouver's West Side will see a disproportion increase in 2014:
The amount of money pouring into high-end real estate in any specific location shifts as wealthy people look for new places to put their funds, currency rates fluctuate, and governments put in place measures to cool overheated real estate markets, Robert said. “There is an increasing amount of money waiting to be spent, but it is better informed and changes direction quicker than ever before.”
Canada, along with New Zealand and Australia will continue to be targets of the wealthy to park their money and set up home. Due to the rule of law, strong domestic balance sheets, political stability, and of course, being great places to live! Hong Kong and other locals will also benefit pending new Chinese and Canadian laws in 2014.

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