The flailing real estate market in Vancouver has seen this sector finally recede from its long-held peak post atop a stack of the city’s highest performers—and make room for retail to lurch into top spot.
According to a just-published Conference Board of Canada report, Vancouver’s economy will shrink in 2017, in large part because of a slowdown in the housing market. But in its wake, retail will emerge as this year’s top-performing economic sector in Vancouver.
Still, retail’s overtaking of real estate doesn’t mean the former wishes the latter ill. Quite the opposite, in fact. The industries of real estate and retail enjoy a symbiotic connection in which each thrives courtesy of the other. In doubt? Consider the vast spending power all the international squatters who have descended on Vancouver’s red-hot housing have visited upon the city.
Retailers in Vancouver, where more luxury and super cars are sold per capita than anywhere else in North America, are said to earn twice the money to Toronto retailers’ reputation for paying twice the rent.
“Vancouver is a bit of a superstar right now, it seems, as far as the performance of luxury retailers,” Retail Insider editor-in-chief Craig Patterson told Global News in January.
Retail, says the Conference Board of Canada report, will surface as Vancouver’s best-performing sector in 2017 “because of strong job gains in the region and the resulting high consumer confidence.”