Hong Kong Political Crisis Could Boost Real Estate Prices in Vancouver

With the recent ongoing political turmoil in Hong Kong, many Canadians living in Hong Kong are now looking to return to Vancouver. To date, over 300,000 Canadian citizens reside in Hong Kong. If protests and political  instability continue, many of these expats, along with those native to Hong Kong, will make the choice to return to Vancouver. In particular, many will want to live in the metropolitan portion of the city. This surge in demand would particularly benefit the downtown and luxury segment of Vancouver real estate. 

The Next Vancouver Real Estate Boom

In recent days, there has been a pronounced renewal of interest in Vancouver homes from buyers currently residing in Hong Kong. Since many of the potential home buyers are already citizens of Canada or people enjoying dual citizenship in both countries, they are privy to exemption from the foreign buyers’ tax. This exemption leads to significant savings for Hong Kong residents seeking to purchase real estate in the Greater Vancouver region. 

Hong Kong Residents Buying Vancouver Real Estate

Since even modest homes in Hong Kong easily exceed a value of $1.5 million (Canadian dollars), Vancouver real estate is within financial reach for many people returning from Hong Kong. Demand for housing in Hong Kong is experiencing an all-time high even today. Anyone looking to sell and move to Canada can do so relatively quickly. With significant amounts of funds on hand, people returning from Hong Kong can easily afford to purchase housing or even luxury properties in Vancouver. In particular, we would expect certain areas to benefit from this surge in demand:     Downtown Vancouver: Working professionals who seek for a more “metropolitan” experience right in the middle of entertainment and commerce     Vancouver Westside: More established and affluent professionals and business people who look to a quieter lifestyle away from the downtown hussle     West Vancouver: Ultra luxury homes for the wealthy Hong Kongers who can afford to own a property in the area Vancouver experienced a low in the luxury housing market in 2019. This trend was attributed to the expected 20 percent tax placed upon foreign buyers, thus temporarily reducing the city’s appeal to investors from other countries. With a new source of demand for real estate in the metropolitan core of Vancouver, the city could begin to experience an increase in asking prices, thus providing a needed boost to the currently lagging real estate market. 

Luxury West Vancouver Realtor

For many luxury realtors, there has definitely been a sudden surge of inquiries regarding buying property in Vancouver. Interest tends to be in the higher end segment of Vancouver real estate. We would expect that tangible demand and bids will start to trickle in over the next few months with steady growth in 2020. If you are looking to buy luxury real estate in West VancouverNorth VancouverVancouver Downtown or Vancouver Westside, perhaps now is the best time to pull the trigger. With an influx of demand, luxury real estate and higher end properties may enjoy a recovery in prices in 2020.Considering the many benefits of living in Vancouver over Hong Kong, there is no doubt that many people are now interested in moving to, or moving back to Vancouver. Investors and people living in Vancouver today may be too focused on short term real estate price fluctuations and forgot about the unique benefits Vancouver offer. Political stability, rule of law, low crime rate, abundant employment opportunities - these are all factors that contribute to long term real estate price appreciation. Perhaps the influx of people returning from Hong Kong may serve as a wake up call to investors to not miss the next run in Vancouver real estate.

West Vancouver Realtor - AMIR MIRI PREC*

If you are interested in buying or selling luxury real estate in Vancouvercontact Amir Miri, a leading realtor assisting clients across the globe with sourcing and purchasing their ideal Vancouver home. Whether you are looking for an investment property or your next family home, Amir has experience and the skillset to find the perfect property for you.