Tuesday, May 31, 2011

Shanghai Vancouver Las Vegas

What is common between Shanghai, Vancouver and Las Vegas? It seems the recent housing bubble on property in China has led many to head west to Vancouver.

The are 64,000,000 empty residential units in China:

According to Chinese Spreading Wealth Make Vancouver Homes Pricier Than NYC :
China, where home prices rose 28 percent in Beijing and 26 percent in Shanghai last year, has taken steps to curb property speculation within its borders. Buyers from mainland China are leading a wave of Asian investment in Vancouver real estate as China tries to damp property speculation at home. As result in 2010, the average home price in greater Vancouver rose 14 percent from 2009. Vancouver’s median home price of C$602,000 ($618,000) was 9.5 times the annual median household income of C$63,100. Canada had a 4.6 national multiple, making it "seriously unaffordable," while the U.S. at 3.3 was "moderately unaffordable," the study showed. To be affordable, the multiple must be 3 or less. Vancouver was more expensive than San Francisco, London and New York by that measure.

In turn, Vancouver residents start to buy homes in Las Vegas.

Re/Max agent Nick Nolf says although people from all over the world are looking at Las Vegas real estate right now, Canadians make up more than a third of his clients. A third of those are from British Columbia, primarily Vancouver. Canadians tend to purchase homes ranging in price from US$100,000 to $125,000.

Apart from prices, investors like Las Vegas because of its taxation system - low property taxes, favourable taxation for business, no state income tax - and because it is not known for such natural disasters as tornadoes, hurricanes and earthquakes.
More details at Low prices, low taxes strong lures for Canadians buying in Las Vegas

1 comment:

Jay B. said...

Evidently, country is not too small for them, Chinese are simply looking for better education opportunities for their children or choose their new home by the immigration policy in the country. Rising prices of real estates connected with the Chinese buyers in Vancouver make Vancouverites move to the other cities whereas properties in their home city are becoming unaffordable. Now the question is who will buy and move to those empty residential units in China.