Housing in Vancouver

Vocabulary

Vancouver’s high-end housing market is on fire. Luxury property prices in the Canadian city soared 25% last year, more than in any other major city in the world, according to a new research by Knight Frank.

In comparison, prime property prices rose 2.4% in New York, 15% in Sydney, 1% in London and 10% in Amsterdam.

It’s not just the luxury homes that are becoming more expensive. Overall home prices jumped 20% in 2015. The average price for a single detached home in Vancouver exceeded $1.2 million CDN ($900,000) last year, making the city unaffordable for many local residents.

The Royal Bank of Canada has warned that the city’s housing market is showing “increasing signs of over-heating.”

Home sales reached an all-time record last year, and were up 28% compared to 2014. The market boom is fueled by foreign buyers.

Foreigners were long drawn by Canada’s attractive investor visas. The program allowed rich international investors to apply for permanent residency in Canada if they had a minimum net worth of $1.6 million CND ($1.5 million) and invested $800,000 CND in the form of a multi-year, interest-free loan to the government.

Canada scrapped the program in 2014, but rich buyers keep coming.

The city is now home to 25,300 millionaires, 720 multi-millionaires and 262 “ultra-high net worth individuals” whose wealth exceeds $30 million. Their numbers jumped 68% in the last 10 years.

The spiking prices are making local residents angry. Several rallies protesting runaway housing prices were held in recent months. Many Vancouver residents also took to Twitter, complaining about the situation using the hashtag #donthave1million.

Experts say the main problem is that the market is hugely unbalanced. Lack of new developments is pushing prices up.

“Fundamental economics are driving today’s market. Home buyer demand is at near record heights and home seller supply is as low as we’ve seen in many years,” said Darcy McLeod, the president of Real Estate Board of Greater Vancouver.

Questions

1. The price of houses in Vancouver have been skyrocketing. True or false?

2. Have only deluxe mansions appreciated in value, or all homes? What is the average price of a family home?

3. The housing market is very stable. Is this correct or wrong? Is this good or not very good?

4. Why is the housing market very expensive? What is the investor visa?

5. Many people want to live in Vancouver. What do you think?

6. Everyone is delighted with the real estate market. Yes or no?

7. Are builders and the authorities constructing lots of affordable dwelling for working class and low-income residents?

A. Why do so many people want to move to Vancouver?

B. Is housing cheap, expensive or medium-priced in your town or city? Is this good, bad, both or neither?

C. What are the most expensive and the cheapest housing in your country? Why are they cheap or expensive?

D. Are there place that people want to move to, and move away from?

E. What might be a solution to expensive housing?

F. What will happen in the future?