Realistically, if you look at the numbers in question - $5 Billion into real estate in 2018 - and you put in the context of the total residential sales in Greater Vancouver for 2018 (about $25 Billion), the percentages are BIG - about 20%. But remember that all of that laundered money is for BC and not just Greater Vancouver and we are talking about all real estate and not just residential real estate so the percentage is actually smaller as the totals include commercial real estate as well (about $6.5 Billion for commercial and $55.8 Billion for BC in residential in 2018). So, that would be $5.3 Billion over $62 Billion or so or less than 10% of all real estate funds were laundered money.adamtheman wrote: ↑May 9th, 2019 11:19 pmIt's funny to look back at all the people who insisted that Vancouver RE prices were not influenced by foreign money or illicit funds. "Vancouver is just a really desirable place to live"...... "There's no more land"....... and comparisons to major cities like Toyko and New York and London. Once this cookie crumbles, Vancouver is just going to be regular old Vancouver again for a while and there will be no shortage of housing, guaranteed. Looking forward to it.
What we don't know is how much of that laundered money was used to be re-laundered again - ie buy house A to do laundering, sell house A and buy house B and really laundering that money twice). And how much of the estimated 5% increase in housing prices helped drive speculation from 'clean' money - ie real investors using clean money looking to make a quick buck rather than doing some laundering?
It looks like some influence was from 'dirty' money but that might be a smaller influence than what it was made out to be especially if you consider that during the same time, more money was laundered in Alberta and the Prairies than BC and they didn't see an explosion in housing prices during that time period. It may be that housing was the preferred laundry mat in those areas.