Will China’s stock market plunge affect Vancouver real estate?
China’s benchmark Shanghai stock index fell by more than eight per cent in Monday trading. The meltdown in China’s stock markets, which experienced the biggest one-day dive since 2007, likely won’t have much of a ripple effect in Vancouver’s red hot real estate market. Dubbed “Black Monday” by Chinese state media, stocks in Shanghai’s main index closed […] The post Will China’s stock market plunge affect Vancouver real estate? appeared first on Andy Schildhorn, PREC.
<h3> China’s benchmark Shanghai stock index fell by more than eight per cent in Monday trading. <span class="Apple-converted-space"> </span> </h3>
The meltdown in China’s stock markets, which experienced the biggest one-day dive since 2007, likely won’t have much of a ripple effect in Vancouver’s red hot real estate market.
Dubbed “Black Monday” by Chinese state media, stocks in Shanghai’s main index closed down eight-and-a-half percent.
But according to some experts, even with markets plummeting, Vancouver real estate remains a safe and secure place to park money.
Tung Chan, former TD Bank vice president, says history has shown that market meltdowns in China have little effect in slowing Asian investment in Vancouver real estate.
“The trickle down effect to Vancouver would be minimal,” said Chan, in a phone interview. “We expect to see a slowdown, but not of people selling and liquidating assets (in Vancouver).”
Chan added that the overriding influence is the perception that Vancouver real estate remains a safe place to invest, regardless of stock market conditions.
“If the economy in China is bad, people send their nest egg here because it’s a safer place. If the China stock market is booming, they send their extra money here.”
Chan added the current exchange rate is working to increase the appeal of Vancouver real estate to Asian investors.
“The Canadian dollar has depreciated quite bit vis à vis the RMB. That makes it more favourable,” he said. “I’ve heard people bidding up real estate because their money goes further because of the exchange.”
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