Canada Real Estate: Chinese Investments Increases As China Economy Shaken
Chinese investment in real estate is expected to increase in Canada where foreign demands made it possible to make million-dollar deals the norm in cities like Vancouver.
Juwai.com, a real estate search engine that lists properties worldwide for Chinese investment ventures, recorded a 134 percent increase in Canadian homes inquiries. The interest indicates that many Chinese investors may be looking to move their money abroad because of their country's economic instability, according to a feature from The Globe and Mail.
Juwai's CEO Charles Pittar said in an email, "Barring any big changes in the environment, we expect Chinese investment in Canadian real estate to increase in 2016, and the impacts of that investment to be spread more widely as these buyers move into new markets."
The country's Shanghai Stock Exchange Composite Index had dropped to more than 40 percent from a high in June. In August, China devalued the yuan, its currency. President Xi Jinping tightened the noose earlier this year to prevent capital outflows. The country also has rules that prohibits Chinese citizens from moving more than $50,000 abroad annually.
A high-end real estate agent Malcolm Hasman said that he had already sold around 15 residential properties, each worth at least $8 million, this year only, according to a feature from Bloomberg.
The agent also said that it's common to see multiple persons bidding on properties as expensive as $10 million. He also stated that he doesn't see the Chinese slowing down.
Chinese investment has also increased in other countries such as the United States and Australia. Chinese investors alone doubled the sales of Australia's commercial and residential real estate in 12 months to June 2015, according to the country's Foreign Investment Review Board. In the United States, they have passed the Canadians as the top foreign buyers of U.S. residential real estate with $28.6 billion worth of deals in 12 months to March 2015, according to the National Association of Realtors.