forma condos great gulf,House prices in Canada have fallen for six months in a row! A Canadian real estate investment intermediary said frankly that now many high net worth people in China have become particularly rational. They have made a detailed understanding of the Canadian property market and have their own judgment on the timing of real bottom investment.Please Visit: forma condos great gulf to Get Your VVIP Registration Today!
Eighteen months ago, he received 2-3 groups of Chinese high net worth people buying houses almost every week, taking them to Vancouver, Calgary, Edmonton, Toronto and other areas to see and buy houses. Even there was a saying in the industry at that time: “on every flight from China to Canada, more than 40% of the passengers came to buy a house.”
They joke that most of these investors are rich “Chinese aunts”.
But now, he can only receive 1 or 2 Chinese property groups a month, and they are particularly cautious compared with the huge amounts of money they spent in the past.
Behind this, the Canadian property market continues to be in the dilemma of falling prices.
Recently, the National Bank of Canada released an index showing that house prices in Canada fell 0.3% month-on-month in March this year, the sixth consecutive month of decline.
Data released earlier by the Canadian Real Estate Association (CREA) showed that Canadian home sales fell 9.1% in February from the previous month, the lowest since November 2012.
Jesse Friedlander, chief investment officer of investment firm Des Voeux Partners, believes that many Canadian real estate agents blame this dilemma on whether Chinese tycoons buy up or down, as well as other recent influencing factors. But in fact, the underlying reason behind this is that more and more Chinese high net worth people planning to invest in overseas real estate are becoming rational-they know that the surge in Canadian house prices in previous years was caused by Chinese investors and are now unwilling to take the last shot.
According to the latest data released by the Canadian Real Estate Association (Canadian Real Estate Association,CREA), house prices in Canada plunged 5% last year from 2017, the first decline since 2008, and even the biggest drop since 1995. Echoing this, total turnover in the Canadian property market fell 11 per cent year-on-year last year, the lowest since 2012.
It is worth noting that the worst-hit areas of the fall in Canadian house prices are Vancouver on the west coast, where Chinese investors flocked to Vancouver, and Edmonton in Calgary. However, the sharp fall in house prices in these areas has not aroused the bottom-buying enthusiasm of “Chinese aunts”.
“at the beginning of the fall in Canadian house prices at the beginning of last year, Chinese investors poured in to buy the bottom, but then they found that Canadian house prices were falling and stopped patronizing.” Wei Gang told the 21st Century Economic report that even some Chinese investors who had signed home purchase contracts at that time would rather give up the deposit than fulfill the purchase payment contract, because Canadian house prices fell by more than 4% at the end of last year. As a result, the loss of margin is less than the decline in house prices.
In his view, the reluctance of Chinese investors to copy the bottom of the Canadian property market is mainly due to two reasons: first, the tax levied by developed countries on overseas buyers is becoming heavier and heavier, which deters more and more high net worth people in China. Second, Canada has tightened its mortgage policy since last year, which has also increased the financial cost of buying overseas homes for high net worth people in China.
