Commercial Real Estate: Vancouver developing a bad reputation for foreign investment

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Chinese investment and immigration to Metro Vancouver is essential to this market, as 80 to 85 per cent of business immigrants who come here are now from China.

Government intervention in B.C.’s property market is tarnishing the province’s reputation with international investors, says the head of a major local property brokerage.

However, Scarrow was joined on the panel by other industry insiders from the U.S. and Hong Kong, who said Vancouver’s reputation for value and stability — and Canada’s openness to immigrants — would continue to drive investment into this market. Citing brokerage house CBRE, Bloomberg reported this month that Asian investments in Vancouver commercial assets fell to almost $350 million in 2018, a drop from the more-than $1 billion invested here in each of the previous two years.

His comments, though, earned some disagreement from fellow panelists Jim Costello, a senior-vice president with Real Capital Analytics from the U.S., and Andrew Weir, the global chair, real estate and construction with KPMG in Hong Kong. The U.S. is shooting itself in the foot by pushing out talented people for the sake of populist immigrant policies. Canada is seen as open and welcoming, especially to students and talented workers. Many of those skilled workers are coming to Vancouver.“Canada has a remarkably good reputation as having a predictable legal system very stable government,” said Weir, adding, however, that the local papers seemed to be painting a different picture during his visit for the forum.

 

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