Post-COVID-19 Signs Already Emerging of Increasing Foreign Demand for Canadian Real Estate as Pandemic Winds Down in China
REIN’s Special Report: The Coronavirus’ Impact on Canadian Real Estate—Canadian real estate will see an increase in foreign demand post-COVID-19. As the pandemic winds down in China, signs of interest in overseas real estate from wealthy Chinese are already emerging. This desire to move and protect capital is amplified given concerns the yuan will weaken further, and even more challenging trade tensions could arise between China and the U.S.
In January 2020, Jennifer Hunt—Vice President of Research for REIN—stated: “We hope the outbreak is contained, limiting both health and economic impacts. When the situation normalizes, one can expect an influx of Chinese immigrants and capital to Canada, resulting in increased demand for real estate.”
Applying trusted methodologies and formulas to analyze the impact of the Coronavirus on the market resulted in the following conclusions of what to expect.
Canadian real estate will see an immediate cool down with long-term lift due to:
A temporary decrease in GDP growth
Increased foreign capital
Leading to increased property values