Canadian Luxury Real Estate Set for Boost
According to a new report by British based Real Estate firm Knight Frank, Canadian Luxury Real Estate will be set for a boost 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 states 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 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:
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, he 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!
Don Campbell, of the REIN network in Vancouver noted, as we did in our recent blog post, that the pattern of home price growth in Vancouver tracks the movement of Chinese GDP – an indication that Chinese investors have considerable influence on the Vancouver Real Estate Market
Let us know your thoughts on this, comment below, and don’t forget my phone is always on. Call me if you have questions, or to put a plan in place to see how you can take advantage of this information. Adam Chahl +1 778 385 6141.