Eunice Lee explains [Korean]
Along with the news that we will significantly open our doors to immigrants announced last Friday, we would like to talk about the impact of the influx of immigrants on the real estate market.
An unprecedented number of economic stimulus packages have been poured out over the past eight months. The stimulus packages so far have provided financial or other relief to individuals who have lost their jobs or had reduced income due to COVID-19, as well as small and medium-sized merchants and businesses who have had difficulty managing their businesses. It mainly consisted of providing assistance in the form of relaxing the law. However, this time, the scope of the economic stimulus package has been expanded to include immigration policy.
A few days ago, the goal of accepting new immigrants was announced. This groundbreaking announcement was made that over 1.2 million people will be accepted over the three years from next year to 2023. I think this is a wise strategy that is very timely at this point in the economic crisis. A report released by real estate company Royale LePage found that new immigrants own more than one-fifth of the country’s residential real estate. However, this figure of more than 1/5 is the figure when viewed nationwide in Canada, and in the case of BC alone, the residential real estate ownership rate among new immigrants reaches 1/3.
The number of new immigrants coming to BC is 13%, less than one-third of Ontario’s 46%. However, the homeownership rate is 32%, which is 3% higher than Ontario’s 29%. It was found that 89% of immigrants to BC brought with them the funds needed to purchase a home. This ratio is much higher than the national average of 75%. Additionally, most new immigrants believe that purchasing real estate is a good investment, and they purchase a home within three years of arriving in Canada.
Folks, new immigrants who believe that purchasing real estate is a good investment are expected to have the money to buy a home over the next three years. If a lot of people come in with , what impact will it have on the real estate market? Wouldn’t it be difficult to predict that the influx of new immigrants, who will give a big boost to the economy that has been depressed due to the pandemic, will also give a big boost to the real estate market?