Three weeks ago, when observing the ongoing lunacy in the Vancouver housing market, we mentioned the case of Canadian Bill Ring, head of operations for a property management company who, as Bloomberg quotes, said “I don’t want to invest in stocks because they’re crazy and real estate is a solid, safe investment.”
Much to our chagrin we mocked Bill’s zest, adding that “if the housing market in Canada were overheating, you wouldn’t be able to get “bargains” like the listing shown below from Vancouver.”
Little did we know that Bill would have the last laugh less thatn three weeks later.
As CBC News reported this week, “the latest poster child for Vancouver real estate excess is off the market, having fetched — of course — more than the asking price, proving that when it comes to securing a plot of dirt on the city’s west side, there seems to be no limit to what buyers will spend.”
Well, not buyers: desperate Chinese cash smugglers who will park money into virtually anything offshore if it means avoiding the upcoming collapse of the Chinese financial system, because if anyone knows what is coming in China, it’s them.
The (perhaps not so shocking) punchline: the property sold for $2.48 million, $80,000 more than what was considered an outrageous list price just two weeks ago when it was put on the market.
Located on West 14th near Sasamat in the location-location location-driven Point Grey neighbourhood, the house had a sale price that reflects a new upper range for land value. It’s certain the wrecking ball will soon land on the shabby little house currently sitting on the property, cheekily dubbed a “dream home” by local newspapers.
Only two blocks away, a brand new four-bedroom, six-bathroom home perched on a slightly smaller lot is currently listed for $4.3 million.
Even the local media can barely contain its amusement at the insanity of it all:
And yes, it is insanity as we showed a few weeks ago – if one is looking for an indicator of how fast Chinese capital is fleeing the mainland, just look at the lines below: they tell the full story.