Festival condos. Canadian real estate developers come to China to strike while the iron is hot. In recent years, Chinese investors have continued to heat up their efforts to buy overseas property.Please Visit: Festival condos to Get Your VVIP Registration Today!
According to the latest research data from Jones Lang LaSalle, China’s overseas commercial real estate investment totaled US $7.6 billion last year, an increase of 124% over the same period last year. Chinese investors’ total investment in the overseas commercial real estate market is expected to exceed the US $10 billion mark in 2014. In the face of this opportunity, some foreign real estate developers have come to China to promote real estate and seek cooperation.
As a hot spot for business investment and immigration, Canada has always been favored by Chinese investors. Commercial real estate projects in Canada are also attracting more and more attention from Chinese buyers.
“in the past few years, when I introduced Canadian real estate projects to Chinese investors, they did not have much response. However, in the past six months, people have shown great enthusiasm for investing in real estate in Canada. Recently, for example, Greenland Group bought real estate in Toronto. Now many investors call me to inquire about this project, hoping to find some investment opportunities. ” Neil NeilLabatte, chairman and chief executive of TrumpResidencesToronto Hotel, recently told reporters in Beijing.
The Trump Hotel is a landmark luxury hotel and residential apartment in the financial district of downtown Toronto. Rabat has more than 30 years of experience in international and Canadian real estate investment. He told reporters that the purpose of this visit to China is to market residential and hotel apartments with the same name, and to find Chinese capital to cooperate with them to invest in Canadian real estate.
In previous years, Chinese investors’ real estate investments in Canada were mainly concentrated in high-end neighborhoods in specific regions, such as western Vancouver and northeast Toronto, according to Rabat. They like to buy large villas and apartments in the suburbs. Now, this trend has changed. China’s new generation of wealthy people are well-educated, have extraordinary taste in life excellence and have rich families. When they invest in real estate, they pay more and more attention to the humanistic value and cultural depth of their real estate, hoping to materialize the wealth and pass it on to their children. Therefore, luxury apartments and commercial buildings located in urban areas have gradually become the focus of their investment.
In addition, with the increasing internationalization of Chinese enterprises, many large Chinese companies are looking for investment opportunities in North America, such as China Investment Co., Ltd. has set up a new office in Toronto. More and more drivers have prompted Chinese companies to look for international investment opportunities, and overseas commercial real estate projects have become their new focus.
At present, in the Canadian commercial real estate investment market, investors from the United States rank first, followed by European investors. At present, there are relatively few Chinese investors, but it is believed that there will be rapid growth. Mr Rabat said Chinese investors were experienced and active in real estate development. Investors in other regions make investment decisions faster than investors in other regions, which is what makes them different.
When talking about how to choose a partner, Rabat said: “We have no preference about who must be chosen as a partner, as long as they have sufficient capital, experience and competitiveness, the two sides have the possibility to negotiate cooperation.”
Private residences at the Trump Hotel are available from C $1.5 million. But the down payment is only C $350000, and then you can make a mortgage payment. At the same time, a 2% annual rate of return on cash is guaranteed. In terms of Chinese investment capital, they have private residential projects ranging from C $50 million to C $200m, with a total value of more than C $3 billion. The company is looking for large corporate capital that can invest at least C $25 million as a partner, or individual investors who can afford C $100 to C $5 million.
“over the past decade, the average annual return on real estate in Canada is 12 per cent, compared with 8 per cent in the US and 6.8 per cent in the world, which is the net return after deducting loan interest.” Mr Rabat said Canada’s real estate market would continue to grow steadily over the next five years.