Richmond is located in the south of Vancouver. It is not only one of the most prosperous cities in Great Vancouver Regional District (GVRD), but also many new immigrants called Richmond home. Richmond provides good quality of life in many aspects, such as living, working, transportation and recreation.
Richmond has grown even faster after the Canada Line Sky Train was completed in 2009. According to statistics from Richmond City Hall, from 2006 to 2014, the population has grown 18.6%. In 2014, the population of Richmond is over 200,000. Richmond demographic can roughly divide into: 45% Chinese, 38% White, and 17% of other ethnic. The population growth also created more job opportunities and stronger buying power in the area.
Richmond real estate attracts a lot of interests, whether it is owner-occupied or for investment purposes. From 2005 to 2011 Richmond housing market went through a sharply boom. In year 2012 and 2013, the Real Estate market was considering a slight correction. According to the latest November 2014 data, the housing prices are climbing up again in Richmond. The current average price of a detached house is over $1 million. The 2015 global economy is forecast to recover and the market flush with cash. Therefore, the housing price in Richmond is still expected to grow.
|Home Price Index for Richmond (Nov.)|
Data Source: REBGV
The proximity and quality of school in the community is vital for buyers, especially for Chinese buyers. Even for families without children, they are taking that into consideration for the future resale value. High schools in Richmond have been ranking consistently good. According to the Fraser Institute ranking of 293 British Columbia secondary schools in 2014, six Richmond secondary schools rank in the top 60 spots. Steveston London Secondary is granted top 4 in public school list in BC. The trend indicates that Richmond schools rank has been and will be going. The high quality of education is a great incentive for the Richmond real estate market, especially appealing to young families, both local and immigrants alike.
Data Source: Fraser Institute
For investors, the investment in rental properties in Richmond has proven to be quite profitable. The average rental return on investment is between 6 – 9%. The current vacancy rate in Richmond is only 1.2% and landlords have plenty of choices for good tenants. Using the rental income to pay off the mortgage is a good strategy for investors.
The 2015 global economy forecast is stable and better than 2014 (Bloomberg Business week). It is expected that new immigrants will continue to arrive and with them come stable influx of overseas founds to the Greater Vancouver real estate market Richmond and Vancouver area real estate continue to be a favorable investment for immigrants. With all the facts discuss in the article, we are expecting a stable climbing for Richmond housing market in the future.