Investing in Vancouver Real Estate

 

Searching for good commercial properties offering a great return? Then Vancouver BC Canada might be the right choice. Although other economies might be strong, the Vancouver real estate market is driven by the scarcity of land.

In a city as beautiful as Vancouver, considered Canada’s fair weather city, you have a lot of people competing for a limited pool of residential properties. It’s the same for the commercial real estate market too — limited numbers of buildings with height restrictions in some places such as Richmond.

Much like the phenomenon of land in Manhattan NY and Hong Kong, those who own scarce real estate are positioned nicely to profit. It’s a timeless fact. And there are other factors driving the growth. Immigration and foreign investment along with positive business expectations will keep the Vancouver real estate market strong.

Vancouver is located on Canada’s west coast where it plays the role of gateway to the Pacific Rim. When Asian business people and emigrants think of Canada, Vancouver is the first place that comes to their minds. They’ve heard plenty about it and many have already visited. The Vancouver winter Olympics brought the images of this magnificent city to the world.

Foreign investment in Canada is highly focused and routed through Vancouver. Foreign investors have connections in the city’s financial community. Its proximity to Asia is key to its success this century and strong immigration numbers have seen tens of thousands of Chinese and Hong Kong people move to the city.

The British Columbia economy has not faltered like much of North America. Mining resources and tourism helped to buoy the local BC economy.

Sales Volume may have Slowed Yet prices are still Strong

The average price of a residential property listed on the Vancouver MLS listings is very high and stats show home affordability is falling.  Incoming immigrants, tourists and students attending schools in Vancouver will find affordable accommodation a concern.  Robert Hogue, senior economist at RBC says “Housing affordability in British Columbia remained poor and worsening in the most recent quarter.”

The Vancouver commercial property market is in good shape too with a 7.3% vacancy rate and an office vacancy rate of 8%. The CRBE rates the commercial market as stable and Avison Young has just given a glowing report on the state of downtown Vancouver’s commercial market.  Almost a million sq ft of new industrial property has been built, and 2.2 million square feet of office space is under construction.  And 4.8 million square feet of retail space is being added in the greater Vancouver area.

Commercial Real Estate property leases have increased in 2012  due to an increase in confidence from companies seeing exports grow 10.5 % from last April. Freight shipments going through Port Metro Vancouver were reportedly up 12.8 % in May 2012. The BC Real Estate Association has just reported that the commercial leading indicators for Vancouver is strong and trending upward.

This is not good news for residents and visiting students and tourists but it is great news for real estate investors.  Some developers are preparing for this positive investment situation.  The Global Education city in Richmond (a suburb in Vancouver) will house hundreds of visiting students from around the world who are eager to receive Western style education and language training.  The GEC will have student accommodation, a hotel, office suites and educational space.

Some areas of Vancouver have real estate values that consistently outperform in particular  Surrey and Richmond,

This graphic shows how stable and improving Richmond”s residential market is.

If investing in Vancouver real estate is of interest to you, inquire about commercial investment opportunities with Joyce Soo.

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JOYCE SOO

Sutton Group Seafair Realty
#550, 9100 Blundell Road,
Richmond, British Columbia
V6Y 1K3
Telephone : (604) 273-3155

Freena Wang (Beijing)

Tel: +(86) 13801087331
Email: sales@globalrealestates.net
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CIBT Announcement

March 12th, 2013: CIBT Education Group Inc. (NYSE MKT: MBA and TSX: MBA) (“CIBT Group”) is pleased to announce that its newly formed division, Global Education Alliance (“GEA”), has entered into an agreement with Academy of Holy Angels (“AHA”)……GEC