Vancouver's Thriving Luxury Real Estate Market

Tuesday, February 11, 2014

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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