8 elm condo floor plan.The Vancouver house price is on a roller coaster. The local government levied an additional 15% “foreigner purchase tax”, which led to a drop in transaction volume and prices in the property market.Please Visit: 8 elm condo floor plan to Get Your VVIP Registration Today!
It is not uncommon for things to go to extremes in the real estate market, and this time it is the Canadian immigrant city of Vancouver.
Vancouver dominated the world with an annual increase of 36.4% from June 2015 to June 2016, making it the city with the fastest rise in house prices, according to the global luxury index released by Knight Frank, a British real estate service. This was followed by Shanghai (22.5%), Cape Town (16.1%), Toronto (12.6%), Melbourne (11%) and Sydney (10.2%).
However, the rapid growth of house prices in the future may not be sustainable. The Canadian government of British Columbia (hereinafter referred to as BC) announced in July that it would impose an additional 15 per cent property transfer tax on foreign buyers of homes in the Greater Vancouver area from August 2.
As soon as the news came out, house prices in Vancouver plunged 20.7% within a month, and trading volume also fell sharply. From August 1 to 14, only three homes were sold in western Vancouver, compared with 52 in the same period last year, down 94% from a year earlier. House prices in Vancouver have continued to rise over the past year.
The Canadian house price index released on August 12th showed that house prices across the country rose 2% in July compared with June, with the most obvious increase still in the four metropolitan areas, with Victoria leading the way with 3.8% increase. House prices rose 3.1% in Toronto, 2.3% in Vancouver and 2.4% in Hamilton.
Among them, house prices in Vancouver rose for the 18th consecutive month in July, rising 2.3% month-on-month in July.
In the real estate market report of 37 major cities around the world released by Knight Frank in the second quarter of this year, Vancouver led other cities with an annual growth rate of 36.4%, making it the city with the fastest rise in house prices between June 2015 and June 2016.
Knight Frank Research senior analyst pointed out that limited supply has become the main reason for the sharp rise in house prices in the high-end housing market in Vancouver. Supply is now at a 25-year low, while demand has been rising, putting pressure on rising house prices. Moreover, low interest rates have reduced borrowing costs and exacerbated house price growth.
As soon as the news came out, the volume and price of the Vancouver property market fell. The reporter looked up the MLS transaction data and found that since the new tax on foreign buyers was announced in BC province, sales of independent houses have declined month-on-month. In Richmond, for example, only three detached houses were sold in the area between July 25 and 31, compared with 12 on July 18-24 before the new tax was announced, and 25 the week before. In addition, in Bennabi, only three self-contained houses were sold during the day on July 25, while seven houses were sold on July 18, and 20 houses were sold the week before.
Due to the rich educational resources in the western part of Vancouver, the “school district rooms” here are also favored by the Chinese, which once appeared the phenomenon of Chinese buying houses in groups. According to MLS, only three houses were sold in Wenxi from August 1 to 14, compared with 52 in the same period last year, down 94% from the same period last year. From July 25 to 31, only one independent house was sold, compared with 27 in the week of July 11-17.
