Vancouver does not seem to be the only city with declining property prices. In 2018, home prices in Toronto were 4.7% lower compared to the previous year and they had a 18% decrease in sales year over year. Hong Kong is also experiencing a downturn and the two biggest cities in mainland china, Beijing and Shanghai, are experiencing a 5% decrease in prices from 6 months ago. London property prices have been experiencing a downtown for the past 2 years, mainly due to the uncertainty over Brexit. In Sydney, prices are 11% down as interest from Chinese buyers has decrease. And in Singapore, new increases in taxation and new mortgage rules are reasons for a slower market.
Different media outlets have researched the topic and Bloomberg published a few factors that are common within most of the slowing markets.
Mortgages and government regulations.
The buyers and have been experiencing different government policies that have affected the market. In Canada we experienced mortgage stress test, in Singapore the government imposed stricter loan-to-value rations, and in China there has been limits on how much money can leave the country.
The Bank of Canada and the Bank of England have been raising the lending rates over the past year, and in Singapore there were several increases in 2018 and expected more in 2019.
With the US – China trade war, the stock markets have been fluctuating a lot. There is high uncertainty of what the future will bring, and investors are choosing to wait.
Demand from China
The tightening of rules regarding the amount of money that can be taken our of china, coupled with the slowing down of the Chinese economy, have cooled down Chinese demand for property in North America, Australia and Asia.
If you want to discuss the market, please reach out using the form below or give us a call to (604) 281.1050.