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Originally Posted by Pastiche
Vancouver real estate is a bank account for offshore oligarchs with unsecure banking systems. A rich Russian could choose to put his $500,000 in a russian bank account or riskier investment or buy a condo in Vancouver.
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Let's say this is happening...rich Russian is only leaving his money in a Vancouver condo while prices are still appreciating or level off. If/when prices start dropping, how long will he (and all the others) wait before unloading it? I guess it depends on how rich he is. Sooner or later they will all start selling....leading to a lot more supply.
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A recent BC Hydro scan of unit electricity use showed that there were over 15,000 condo units in Vancouver that were completely vacant.
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I've heard even higher numbers
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Mind you, this isn't the only reason why Vancouver real estate is so expensive. One of the big reasons is just supply and demand. It's a geographically constrained city with unmatched natural beauty and outdoor ameneties. Small supply meet high demand. Boom: economics.
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This is the running out of land argument that has been popular here for years. I don't buy it. Vancouver has lots of room to grow...especially up.