Little Hong Kong – The Overseas Property Market in Canada’s Richmond District

2024-02-15 11:35:54

Overseas Property Market｜How much will property prices rise in Canada’s “Little Hong Kong” amid racial turmoil and boom in Richmond?

The Richmond district of Vancouver, Canada, where Chinese people live heavily, has always been called “Little Hong Kong.” Recently, the local council has caused controversy and even been involved in a racist incident because of the local council’s plan to set up a drug injection house. Some people in the local real estate industry said that property prices in Greater Vancouver increased by 4.2% year-on-year in January this year. Richmond was the foothold of the first wave of Hong Kong immigrants. In addition, Richmond has never had a drug injection house in the past, and the public security is good. Even if the new crown epidemic Despite the impact of the pneumonia epidemic and interest rate hikes, property prices can still rise steadily.

A few days ago, the Richmond City Council planned to open a safe drug injection room in Richmond Hospital, which triggered a demonstration by residents in the area. During this period, a white woman and a middle-aged Chinese man exchanged words. The former even told the latter to “Go back to Hong Kong.” ” (Go back to Hong Kong). The local government stated that supervised safe injection houses provide a safe place for drug users to take drugs under the supervision of qualified health professionals, and emphasized that staff will not distribute drugs, but provide them with adulterated drugs. Addiction treatment and recovery services. Due to the huge public outcry caused by the bill, Vancouver Coastal Health stated that it “will not build an independent supervised drug consumption site (so-called safe drug injection house) in Richmond.”

Overseas property market｜Old overseas Chinese: It will be difficult to develop following the injection center is established in Chinatown

Zhu Muchen, a veteran overseas Chinese who has immigrated to Canada for many years and is a licensed property sales and property management consultant with Re/max Crest Realty, said that since the establishment of a methadone injection center in Vancouver’s Chinatown, the area has become “smoky and has poor security,” making people shy away from Chinatown. . Even if the government later intends to redevelop Chinatown, the basic factors have not changed. In addition, there are still injection centers, food banks, shelter centers, and community centers for street sleepers, making it difficult to “turn back” to development.

Compared with “Little Hong Kong” Richmond, Zhu Muchen said that since the first wave of Hong Kong immigrants in the 1990s, the number of Chinese has been highly concentrated, and “basically you don’t need to speak English when entering the Richmond area.” In the past 20 to 30 years, many investors and real estate developers have built buildings with Hong Kong characteristics in Richmond, such as Aberdeen Centre, Landmark Plaza, New Town Plaza, Admiralty Galleria and other Hong Kong landmarks, and the economy has been booming.

Overseas Property Market｜How much will property prices rise in Canada’s “Little Hong Kong” amid racial turmoil and boom in Richmond?

Overseas property market｜Demand increases, inventory is low, and housing prices in Greater Vancouver are expected to rise 3% this year

According to data from the Real Estate Board of Greater Vancouver (REBGV), home sales got off to a strong start in the first month of this year. The total number of home sales in Greater Vancouver in January was 1,427 units, an increase of 38.5% over the same month last year. There were 3,788 newly listed houses, townhouses and apartments last month, an increase of 14.5% from January 2023. The comprehensive benchmark price of the MLSR house price index in Greater Vancouver last month was CAD 1.1613 million (approximately HKD 6.7 million), an increase of 4.2% year-on-year and an increase of 0.6% month-on-month; the benchmark price of a detached house was CAD 1.9424 million (approximately HKD 11.21 million). , up 7.3% year-on-year and down 1.1% month-on-month. The Real Estate Board of Greater Vancouver expects home prices to rise between 2 and 3 per cent by the end of the year due to increased demand and low inventory.

As for property prices in Richmond, Zhu Muzhen said that the market is expected to enter an interest rate cut cycle at the end of this year, and the property market will be more active in the future. In the past, several buyers had to wait on the waiting list to grab competing units. Currently, both buyers and sellers in Richmond have 5% bargaining space. She also pointed out that rents in British Columbia have risen exaggeratedly. Many owners have resold their properties to rent without having to sell them at a significant price reduction. Due to the satisfactory rental return rate, during the peak period of property prices in the past 2 to 3 years, rents have The rate of return is regarding 2 to 3%, but currently the rental rate of return has risen to 5 to 6%. Many owners would rather rent out their properties and wait for property prices to rise before selling their properties.

Overseas property market｜Richmond property prices rose 3% last month and transaction volume soared 34%

According to data from the Vancouver Real Estate Board, the average property price in Richmond in January was 1.14 million Canadian dollars (approximately 6.58 million Hong Kong dollars), an increase of regarding 3% year-on-year from 1.107 million Canadian dollars (approximately 6.39 million Hong Kong dollars) in January last year. The average price of a detached house last month was CAD$2.079 million (approximately HK$12 million), compared with CAD$1.967 million (approximately HK$11.35 million) in the same period last year, an increase of approximately 5.7% year-on-year. The average price of townhouses last month was 1.1 million Canadian dollars (approximately 6.35 million Hong Kong dollars), compared with 1.06 million Canadian dollars (approximately 6.12 million Hong Kong dollars) in the same period last year, an increase of approximately 3.8% year-on-year. In terms of transaction volume, there were 165 transactions in the first month of this year, compared with 123 transactions in the same period last year, a year-on-year increase of more than 34%.

Written by: Wendy Global Real Estate

Overseas Property Market｜How much will property prices rise in Canada’s “Little Hong Kong” amid racial turmoil and boom in Richmond?

The original article was published on AM730

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