Vancouver
has a flourishing luxury real estate market. According to CTV
News,
sales of luxury homes in Vancouver priced over $2 million hit 1,609
in 2014, marking a 36 percent increase from 2012. The Vancouver
luxury real estate market is predicted to continue this hot streak
into the near future.
On
the other hand, what are some of the factors that have contributed to
this rising demand? Currently there is a shortage of high-end homes
in Vancouver, especially single-detached homes. While demand has
grown, there aren't enough luxury properties to fill the demand. The
construction industry's teardown strategy is also fueling demand, as
many builders are opting to tear down older houses (typically around
$2-3 million in value) to build newer, higher value upscale
properties.
Also,
Vancouver is considered to be one of the most livable cities in the
world. Aside from its world-class amenities and city planing, and
interesting melting pot of cultures, Vancouver is also considered to
be one of the greenest cities in the developed world.
Other
factors that have contributed to the growth of the Vancouver luxury
real estate market are low interest rates and wealth transfers from
one generation to the next. Contrary to popular belief, foreign
investment is not the main driver of growth, as it only accounts for
5 percent of the market in British Columbia. Domestic investment is
the main driver of growth.
Interested
investors should contact Vancouver
REALTORS ®
to help them locate properties that fit their needs and budgets.
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