Julia Lau believes sales are about to spike in certain neighbourhoods, in conjunction with the three-week holiday associated with Chinese New Year. Lau’s clients are wealthy Chinese businessmen who set their families up in tony areas of Vancouver and West Vancouver that offer multi-million dollar homes with top schools. These investors like to buy Vancouver property while visiting the wife and children at this time of year, Lau says. “In Chinese culture we buy one home for living in and a few for investments,” Lau said. “Most of my clients buy in cash, so they don’t need the bank. They would not be forced to sell (due to changing financing conditions.)” Lau predicts that in the Chinese investor season from January to May this year, she will sell ten luxury homes per month — a little slower than last year’s frenetic sales pace.
Local Speculators have been snapping up properties like hot cakes with dreams of capitalizing on what has been a redevelopment cash cow the past few years. Massive profits have been made as HAM snapped up redeveloped West Side homes at ridiculous prices.
Here is one such property at Blenheim and W. 23rd
(click on image to enlarge)
Already spent $500,000 for the works. Will need about $250,000 interior works for your personal choices of flooring, kitchen and MBR bathrooms fixture, paint and partition layout, sprinkler & sewage upgrade. Permit with floor area 3497 sf plus bonus open space 400 sf of crawl space 3'11" high in the basement. Roof top has some winter water view with a flat roof in drawing for a potential roof top deck.
Quick $2.1m price for handyman or contractor who can do some finishing works and resell it easily for $2.6m-2.8m and up once completed.
Reason to sell - my partner and I have different tracks for our train of thoughts now.
Sounds to me like the prospect of an imploding Vancouver housing bubble is starting to spook these speckers.
On that note, the situation in China is being driven by deliberate tightening by the government as officials implement an array of measures to curb growth in the real estate sector.
Will tightening continue?
quotes Wang Shi, founder of Vanke (China's biggest developer by revenues) in Hong Kong just after he completed a one-year study tour in the United States:
"If China does not control property bubble, once it bursts, the country cannot withstand. I truly hope tightening will continue."I have a feeling there aren't too many in China's government who will disagree. That means you can expect further drops in the Chinese Real Estate market, further drops in the Chinese stock markets, and a lot less money available for Asians to 'invest' in Vancouver Real Estate.
The speculation game on Vancouver's West Side is about to get very rocky.
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