It appears that the conditions in the Chinese stock market is causing a global stir. In Vancouver, some wonder where Chinese investors will invest their money given recent stock market instability. It has been reported that the breakdown in China's stock markets, which experienced the most prevalent one-day dive since 2007, won't possibly have much of a domino effect in Vancouver's real estate market.
The source says that it came to be labeled as "Black Monday" by Chinese state media as stocks in Shanghai's main index closed down to 8.5 percent.
On the brighter side, CBC news reports that according to some experts, Vancouver real estate remains a safe and secure place to park money even with markets falling down.
Tung Chan, former TD Bank vice president, pronounces that history has shown that market collapses in China have little influence in slackening Asian investment in Vancouver's real estate. According to CBC Nes, said Chan, in a phone interview, "The trickledown effect to Vancouver would be minimal."
"We expect to see a slowdown, but not of people selling and liquidating assets (in Vancouver)."
Chan added that the prevailing influence is the awareness that real estate in Vancouver is still a safe place to invest, in spite 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."
Mr. Chan also added that 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."
