Chinese will continue to invest in Vancouver

The biggest increase in global billionaires since 2007 has been in China and Russia. That money is seen in London, Melbourne, Sydney and Vancouver as these HNW clients find offshore homes for sale.

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According to real estate services firm Colliers International, Vancouver, Canada, London, UK, along with Melbourne and Sydney, Australia are the choice spots to buy second homes for China’s super rich.

There are a few reasons that drive the Chinese high-net-worth to seek out international real estate:

  • desire for real (or tangible) assets
  • find better investments than the low yeilds offered by banks and bonds
  • volatile equity market
  • and, to avoid mainland taxes.

In the past six months, Chinese HNW have spent 1.3 billion yuan (roughly $200 million dollars) through Collier’s international property department. And there’s more to come, said Alan Liu, managing director of Colliers International.

For Vancouver homebuyers that means the average 12% increase in home prices in 2010 will rise approximately another 3% in 2011, according to the Canada Mortgage and Housing Corporation — with demand from mainland immigrants now accounts for 29% of all new homes in Vancouver. (In London, UK, Chinese buyers account for 28% of all prime London property sales, where houses go for $8 million dollars on average.)

2 comments on “Chinese will continue to invest in Vancouver

  1. At this very moment the Canadian real estate avenues are offering some juicy housing and luxury properties. So why the wait then? The housing prices are a bit steep for those who are cash strapped and after the bailout from the Chinese during the cool down economy. Many foreign investors are tapped out for disposable cash. Read more .. http://www.myrealsearch.ca/vancouver-real-estate-

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  2. A lot of attention is given to China but in fact Vancouver is as desirable as ever to any wealthy person either in Asia, Europe, Africa or America. A wealthy individual investing in Vancouver is not looking for very high returns, they can get that in their own business or country, they are looking for stability, a place where is secure and to diversify from the risks they currently have.

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