A major effect of Donald Trump’s upset victory at the U.S. elections is the increased desirability of recreational properties among domestic buyers, according to Royal LePage CEO Phil Soper.
The relatively high greenback-loonie exchange rate along with apprehensions over a Trump administration has contributed to Canadians’ reduced interest in U.S. real estate, NEWS 1130
“With a high American dollar relative to the Canadian dollar, their enthusiasm has damped somewhat. I think this may dampen it further and we may see more interest in Canadian recreational property,” Soper said in a statement.
On the other hand, this could prove to be an unprecedented opportunity for the Canadian market to bring its unique advantages to bear.
“Differentiations could actually be very helpful for Canada in that a Trump-lead America will look very different for Canada. Our brand — strong, fair, tolerant, welcoming — could actually help us in our goal to attract people to help our country grow,” Soper explained.
The comments came in the wake of a contentious presidential campaign that has seen the eventual winner utilize rhetoric aimed at revitalizing insular nationalist sentiments. Canadian investors’ hold over U.S. real estate has also weakened over the past year, with enterprising entities from Asia, Europe, and the Middle East apidly catching up, according to analysts.
This is a development that should come as no surprise considering the prevailing regulatory climate, Manulife Real Estate global head of asset management Ted Willcocks argued.
“Notionally, I think you’re going to find that China will start to outstrip us – I mean, just the sheer volume,” Willcocks said. “We don’t have all the transparency on some of the plans and some of the insurers that are coming out of China.”
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Canadians’ hold on U.S. real estate slackening