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.)