Black Monday
China's "Black Monday" on August 23rd sent markets reeling across the globe. Since then, I have been asked by so many people from Hong Kong, China and my local clients my view on our Vancouver market. "Is our market going to bubble now?" This particular question has been asked for the last 10 years. We don't have crystal ball but take a look at this interesting debate. Like any stock market crisis in the past, there are speculator definitely get really hurts. The hard assets always get benefit from it.
Stats Canada projects by 2031, the Chinese Canadian population is projected to reach between 2.4 to 3.0 million, constituting approximately 6% of the Canadian population. Most of the Chinese Canadian community is concentrated within the provinces of BC and ON. Don't forget we have significant amount of Canadian with Non Resident status residing in different part of world who will eventually move back to Canada. I don't want to paint a rosy picture on our real estate market and why our market remain strong for a long time. However, the fact shows the real estate market in both BC and ON have bright future with some hiccups in between. I personally think the China's "Black Monday" might temporary psychologically put a damper on the luxury market in China but might not be the case in foreign properties.. read "China's rich seek shelter from stock market storm in foreign property" . I recently contribute an editorial in NAWRB Magazine, a US magazine on "China's New Middle Class Fueling Growth".
Regardless who wins at our Federal election, regardless the potential of implementing new rules to foreign investors. I cannot see the government would damage the relationship with China.
Source: Canada 2011 Census.
