China’s Banks Cooling Vancouver Housing Investment?

Price Tags

House for sale signs with Mandarin or Cantonese.

There are some interesting changes occurring in China which may impact the Vancouver housing market. As reported in Business in Vancouver  “the People’s Bank of China and the State Administration of Foreign Exchange (SAFE) began an aggressive intervention in the market to curb capital outflows. In January it was ruled that all buyers of foreign exchange must sign a pledge that they won’t use their $50,000 quotas for offshore property investment.”

Citizens of China may take $50,000 a year out of the country, but enforcing the regulation that the monies will not be use for foreign property investment has never been routinely enforced. Stricter penalties mean that people who do may be denied foreign currency access and be part of investigations for money laundering.

It is estimated that 35 billion dollars a year is spent on commercial property investment not including the purchase of overseas homes. Last August…

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