Strong Buying Interest from Mainland Chinese Buyers
Buyers from Mainland China are a driving force in our real estate market. Immigration to Canada, especially the rich Chinese business class under the “investor immigrant program” remains strong. This group of buyers are not the only rich Chinese immigrants to Canada. They are the third wave of Chinese immigrants – and this is a very much bigger wave of rich Chinese immigrants choosing to settle their families in Canada. The first wave of rich Chinese immigrants came from Hong Kong in 1979s, followed by a second wave from Taiwan in 1980s.
There is a rapidly growing middle class in China, many of them have friends and relatives abroad. They are well informed and follow their fellow Chinese immigrants who successfully settled their families abroad, but maintain their business dealings back in China. Canada has become the most popular country for rich Chinese immigrant and they think Canadian real estates are safe and stable – Canadian home values held up and survived fairly well through the global economic downturn.
These rich immigrants also like the fact that Canada’s education system is highly regarded, and they love to have their children educated in Canada. They love real estate as they strongly believe real estate is a safe haven for their wealth – they “owned” the properties here in Canada unlike properties in China which are mostly on 70-year leases.
Outlook for Vancouver Housing Market
This strong real estate buying interest from Mainland Chinese is expected to continue with as these buyers are capable and ready to invest in Canadian real estate. Canada has a great education system, and there is a large Chinese community in Toronto and the lower mainland of Vancouver. Richmond and Vancouver West are the two most favored cities these rich Chinese immigrants like to buy their homes. Detached homes are favored by home buyers in Richmond, Vancouver west and buying interests are spilling over to other adjacent cities like Burnaby and Coquitlam.
The recent restriction and control put in place in China to curb escalating real estate prices is an important driving force in the flow of money into Canadian properties from China. Most of the homes bought by the rich immigrant are bought with large down payments and some are are bought with little financing.
The participation of a group of local home buyers who benefited from the doubling and tripling in their home values also contribute to the rapid gain in home prices over the years. Confidence in the market place is strong as most home buyers believe the strong demand in the market place and limited supply of land parcels will push home prices higher.