A slumping Chinese economy is expected to hurt multiple resource sectors across Northern British Columbia; however, the impact the world’s second largest economy and most populous nation could have on Vancouver’s real estate market is unquantifiable as of right now, said Bryan Yu, a senior economist with Central 1 Credit Union.
“There is definitely some linkage there, but it’s still not being properly tracked,” said Yu when asked about Chinese influence on the local housing market.
“There havn’t been enough studies on its impact, and it hasn’t really been tracked by industry or the government.”
Yu said without the availability of data, Central 1 Credit Union cannot factor foreign buyers of B.C. real estate into their economic forecasting.
“It’s just not one of the tools we have right now, so anything that is said is highly speculative.”
Central 1 Credit Union recently released a forecast in which they stated the housing market will remain robust, with buyers largely concentrated in urban areas. The report states that real estate sales should continue to provide a lift to the Lower Mainland’s economy in the coming years.
Prime Minister Stephen Harper said, if reelected, he would bring in new measures to track foreign home ownership across Canada and potential restrictions on foreign buyers. Harper made the pledge at a recent campaign stop in Vancouver where he also touched on the apparent unaffordability of local housing prices, potentially caused, in part, by foreign real estate buyers.
The report also predicts weak commodity prices due to slumping Chinese demand for things like wood, oil and minerals that “will put pressure on short- to medium-term growth in northern B.C. and Kootenay.”
The report further states that “Northern B.C. is poised to grow at a faster rate in late-2016 onwards with the start of one liquefied natural gas terminal and pipeline, the Site C dam, and other major projects.”
