Foreign Investors Play A Key Role In Vancouver Housing Market

According to findings done by researchers in British Columbia it was discovered that foreign investors have a great influence on the housing prices. Canada is home to one of the largest real estate markets and this draws in numerous investors from the international community.

During an interview, Andre Pavlov, a business professor at Simon Fraser University explained that in a study he conducted on the matter of foreign investors’ involvement in the Canadian housing market, he found out that in some ways, Chinese investors especially have a great impact on the market, whether they fully participate in it or not.

He went on to say “This is as good evidence as we can get on the impact of foreign ownership on the real estate market. And the conclusion is: yes, there is an impact.”
Although the picture is clear to see, the true effects foreign investors have on the Canadian housing market is still largely uncertain.

The housing prices continue to increase in Canada and buyers are finding it difficult to cope with the high prices of the houses as they have little say in negotiating prices.
While measures are being taken to help curb the increasing prices, more foreign investors continue to flock in and are participating in the housing market.

Pavlov went on to debate that “It is difficult to separate people and money because they both play key roles in the real estate market.” This makes it hard to determine the major contributing factor to the increase in housing prices.

However, Tsur Somerville differs from this point of view to argue that foreign investment is by far the most important as people that are concerned are the wealthy ones since they bring in the money.

Nonetheless, Somerville went on to argue that a few number of wealthy foreign investors should not be used to determine the overall impact of foreign immigrants in the housing market.