Vancouver real estate developers are expecting a relatively stable market next year, but one that’s not quite as strong as 2011.
That is the assessment of PwC’s latest Emerging Trends in Real Estate report, which found that across Canada the recovery of the real estate market next year could taper off somewhat.
Jasen Kwong, PwC’s B.C. real estate leader, said developers are approaching 2012 with more trepidation.
“The mentality is a little more caution for 2012,” said Kwong.
The report reflects the views of more than 950 real estate industry experts in Canada, the U.S. and Latin America.
In Vancouver, one of Canada’s hottest real estate markets, Kwong said 2012 holds continued optimism in the residential market as offshore buyers, notably from China, continue to invest in condominium projects.
Kwong added that none of the Vancouver developers interviewed for the report said they planned to delay construction.
“I think that’s relatively good news for B.C. construction activity.”
On the commercial front, Kwong said growth would likely remain stable to flat, though much of it depends on the overall health of the global economy.
Finally, Kwong said the repeal of the much-criticized harmonized sales tax (HST) could also negatively affect residential home sales.
“They’re expecting that local buyers may be postponing their purchases of homes until at least there’s a little bit more certainty on how this goes back from the HST to the PST system.”
Joel McKay
@jmckaybiv