The college student life is usually associated with packages of instant noodles, overcrowded dormitories, and cheap beer. However, this is not the case in Vancouver. Just a quick search on Facebook will show that rent for a bedroom in a Vancouver mansion is as little as C$1,100 ($825) per month. Steam rooms, pool tables, and glass chandeliers in large mansions are the new normal for college students in the Canadian city. Why is this happening? The answer lies in the curious Vancouver real estate market.
Vancouver Real Estate Market: Then and Now
What we’re seeing in Vancouver now is a far stretch from the property boom of 2016. The gains in Vancouver prices had surpassed those of London and New York. Then, the Canadian government enacted policies to tame the market. New taxes and strict mortgage regulations resulted in property sales falling to their lowest since the 2008 financial crisis. These new laws particularly affect Chinese-Canadian real estate owners who have been directing a steady flow of capital into the market in recent years.
Vancouver New Taxes Attack Foreign Investments
The new taxes on Vancouver empty homes can add up to 3 percent annually. Hence, homeowners are now racing to lease their homes. As a result, there are incredible bargains for renters. Houses with C$4 million are renting for C$4,500 per month. It is great news for college students who want to live luxuriously on a budget.
For foreign investors from Asia, it can feel like there is increasing hostility to their capital. For example, Chinese-Canadian homeowners in Vancouver who split their time between China and Canada are forced to sell their properties for less or risk paying hundreds of thousands in extra annual taxes.
China Adopts Blockchain at Rapid Rate
The dynamics in Vancouver are changing, just as China is looking to adopt blockchain technology for transactions. Recently, the Chinese government released its new guidelines for introducing blockchain in the agricultural finance sector. More industries might follow.
Propy can help, when it comes to real estate transactions. The Propy platform allows homeowners to sell properties on the blockchain across borders for fiat or crypto. With automated processes and all records stored on the blockchain, the property selling process is streamlined and cost-effective. This platform is what sellers can use to gain more exposure to global buyers and perform transactions on the blockchain.