Zolo, a Canadian real estate brokerage compiled fresh MLS data which showed that most of Metro Vancouver’s real estate is presently witnessing a significant correction, as was predicted by OECD about three months ago.
In the last 28 days alone, the average home price in the city of Vancouver increased by 20.7 percent and 24.5 percent over the last quarter. According to Zero Hedge, it went down to $1.1 million.
In the same vein, the average price of detached homes plunged by 7 percent over the last three months, down to $26 million.
Similarly, sales volumes experienced reductions, with the first two weeks of August seeing only three transactions in West Vancouver, a major 94 percent decline from 52 sales in the same period last year.
According to Avison Young, these developments corresponded with record-breaking vacancy rates in Vancouver’s commercial real estate sector, reaching 10.4 percent by June 30th.
The amount of empty space is expected to be intensified with the completion of six office towers totaling approximately 802,700 square feet by the end of the year, all this happening in the constantly increasing costs of rental in the city’s premium assets.
The reported sale of a $4 billion real estate by Cadillac Fairview is symbolic of the trend showing the departure from the Vancouver market. The portfolio comprises of, among others, 14 assets in Vancouver and Richmond, especially Canada’s largest shopping centers, notable buildings and office towers.
Over the past few months, Vancouver’s commercial properties have witnessed record prices, mostly due to foreign demand, demonstrated by the $1 billion-plus purchase of the Bentall Centre by the Chinese holding company Anbang Insurance Group.