Real estate in the Lower Mainland continues to make headlines and people bandy around terms like “bubble” and “unsustainable”. The question is, is the property market here really that much hotter than in other cities around the world?
Thanks to Knight Frank’s Global Residential Cities Index, we can see how Abbotsford house prices compare to those of other cities. The index charts how much prices have increased in 165 cities around the world. Altogether home prices increased in 121 out of the 165 cities. The first thing to note is that Abbotsford would not top that list. Top of the list is Shenzhen in China, where house prices jumped up by a whopping 47.5% in the last year. In comparison, the benchmark price for a home in Abbotsford went up by 32.3%.
That would put it at 2nd place in the list, coming in a good bit ahead of Auckland (25.4%), Istanbul (25%) and Sydney (19.9%). So, it seems that the Abbotsford real estate market really is as scalding hot as people keep saying. It easily beats other hot property markets, such as London (11.4%) or New York (3.3%), when it comes to increasing sale prices. It also a lot higher than the average for the index, which was 4.4%. To put those numbers in some local context, it’s a smaller increase than was seen in neighbouring Surrey (39.3%), Mission (35%) and Langley (35.3%).
This growth is a sign of a strong economy. In comparison, many of the lowest ranked cities on the list, where house prices actually decreased in the last year, are in economically struggling nations, such as Greece, Italy and India.
Although the number of home sales in Abbotsford dropped slightly from April to May, it is unlikely that property prices in the area will reduce any time in the foreseeable future. Rather, demand remains extremely high, which is fueling the upward trend in prices.
Here is the full list: