The price of single-family homes in Vancouver shot up 30 percent during the past year, according to the Real Estate Board of Greater Vancouver. The average price of a single house reached CA $1.4 million in April.
Peter Routledge, a financial analyst at the National Bank of Canada, stated in a report that Chinese buyers spent CA $12.7 billion (63.3 billion yuan) on Vancouver real estate, accounting for a third of all sales.
The number of Chinese buyers purchasing homes in Vancouver rose sharply in the last year, Beijing Youth Daily reported.
But Canadians have started to express dissatisfaction with their government’s willingness to allow foreign buyers to drive up the price of Vancouver homes.
The average annual income of Vancouver families is CA $70,000. At the current market price, the average Vancouver family would have to go 20 years without eating drinking or paying taxes to purchase a home.
Canada’s 2016 federal budget will allocate special funds to track and review foreign buyers’ sources of money. In March, Premier of British Columbia Christy Clark said the province will take measures to stop the phenomenon of “shadow real estate” sales.
The Canada Mortgage and Housing Corporation said the price of single-family housing in Vancouver far exceeds the expected price level based on the city’s financial situation, economic output and population density.
The agency is studying foreign interest in the Canadian real estate market for a follow-up survey of housing.