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Foreign buyers still driving Vancouver's luxury real estate market: report

Last Updated Sep 1, 2015 at 7:23 am PDT

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Summary

'Foreign buyers have continued to drive demand in the Vancouver and Toronto luxury markets,' says Re/Max

METRO VANCOUVER (NEWS 1130) – Buyers from China continue to drive the Metro Vancouver market for luxury homes.

In the first seven months of the year, sales of homes for $3 million or more shot 79 per cent higher, according to data compiled by Re/Max.

“New immigrant Asian buyers, primarily of course from Mainland China, they’re the ones snapping up… over 70 per cent of these — right throughout the market, whether it be the lot value or the brand new home,” says Wayne Ryan at Re/Max Crest Realty Westside.

Re/Max says in addition to strong foreign demand, there is also low inventory of single-detached houses “that has led to more homes meeting the higher dollar threshold.”

Toronto’s high-end home sales have grown even more — 119 per cent, more than double from a year earlier. The real estate company says foreign demand is also a factor in Toronto.

Re/Max adds that foreign buyers “Canada for its stable economy and high quality of life, and their real estate decisions are strongly influenced by proximity to good schools.”

“Foreign buyers have continued to drive demand in the Vancouver and Toronto luxury markets,” the report said.

Primarily Chinese families with children, the buyers choose “Canada for its stable economy and high quality of life, and their real estate decisions are strongly influenced by proximity to good schools.” Purchases are also driven by local professionals looking to upgrade.

The desire to live in a large, downtown home met with limited supply. Homes worth more than $3 million sold at a faster clip than those above the $1 million mark in Toronto and Vancouver, the report said.