Who Are Buying the Million Dollar Homes in Vancouver?

The most recent available data from Statistics Canada for median household income was $71,140 in 2012. According to a report from The Conference Board of Canada, the average pay increase for non-unionized employees is projected to be 2.9% in 2015 and it is around the same modest increase seen in the past few years. If we assume household income increases by 3% per year, the median household income is around $77,736 in 2015.

So how much house can a family with gross annual income of $77,736 (or $6,478 per month) afford in Greater Vancouver?

Assuming with no other debts, interest rate of 2.85%, 25 years amortization and 20% down payment, the maximum purchase price this family can afford is $376,281. And if they are considering Vancouver, Burnaby or Richmond, these are the choices right now:

available homes

So who are buying the million dollar homes in Vancouver?

According to Sotheby’s International Realty Canada‚Äôs new report on luxury homebuyers, these people are:

luxury home buyers

The report also re-affirmed the heavy influence of international buyers on the Vancouver luxury real estate market. Mainland Chinese are the predominant international buyers in Vancouver and they prefer single family homes and condos. Our real estate is considered affordable as compared to LA, New York, London or Shanghai.

In addition, they pointed out the trend of affluent parents of international students from China, Middle East and Europe buying luxury condo as residences for their children while attending schools in Vancouver.