Forma Condo Downtown.House prices in Canada have fallen for six months in a row! The head of 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 real timing of bottoming investment.Please Visit: Forma Condo Downtown to Get Your VVIP Registration Today!
“Business has slowed down a lot.” Wei Gang (a pseudonym), the head of a Canadian real estate investment agency, lamented to the 21st century economic reporter.
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.
“the situation will certainly not improve in April, because Chinese Tuhao, the largest overseas buyer in the Canadian property market, is now thinking about selling and cashing out as soon as possible, rather than making a bottom.” Wei just pointed out. Recently, he received advice from a number of wealthy Chinese to sell their Canadian villas, which is 3-4 times higher than in 2017, but the problem is that even if they sell at a 10% discount, they may not be able to find Chinese compatriots.
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.
