VANCOUVER (NEWS 1130) – Vancouver places ninth in the world when it comes to rising home prices, according to a global real estate consultancy’s look at the last quarter.
Ninth is actually a drop-off for Vancouver, which was fifth on this list compiled by Knight Frank Real Estate the previous quarter. But that’s not because prices dropped, but because China’s prices are surging with its cities holding the top eight spots on the list.
“This shift is not as a result of slowing prices, annual growth is much the same as in June, close to 24 per cent, but due to the phenomenal ascent of the Chinese cities which have supplanted it,” finds the report.
However, Tom Davidoff with UBC’s Sauder School of Business says rising prices here are not guaranteed next year. “When you look at interest rates and most policy, other than the province’s recent partnership, the wins generally suggest negative price movements.”
In fact, Davidoff thinks prices may drop further in 2017. “If we see four per cent mortgage interest rates are higher by the end of 2017, you have to think that’s a negative for the Vancouver housing market.”
Beyond China, the report finds Asia’s other real estate hot spot in the world is down under. Annual price growth in the city of Wellington (17 per cent) has seen it overtake Auckland (15 per cent) as New Zealand’s hottest housing market, a title Auckland held for eight years.
This comes as Royal LePage predicts we could see a double digit correction in our market.