M City Condos Floor Plans.Real estate speculation in Vancouver shocked Canada. In your impression, what are Chinese students doing abroad?Please Visit: M City Condos Floor Plans to Get Your VVIP Registration Today!
Do you engage in scholarship, amaze foreigners with your achievements, or do you go sightseeing, buy luxury goods, and enjoy life? Maybe both. Now, Chinese students seem to have another “specialty”-real estate speculation.
The documents show that in Cape Gray, there are nine buyers of luxury homes with a total value of C $57 million, all marked as “students”. Moreover, as the names of the owners of luxury houses are all Hanyu Pinyin, these nine students are likely to be Chinese!
David Eby also specifically mentioned a mansion on West 8th Avenue. In April last year, the mansion was bought by a Chinese student for 7.19 million Canadian dollars (36.4 million yuan). In May, the classmate “Xuan Kai Huang” sold the house for 8.35 million Canadian dollars, making a full net profit of 1.16 million Canadian dollars (5.85 million yuan).
This Huang student reminds me of another classmate named “Tian Yu Zhou”. According to a report in the Vancouver Sun in May, a registered Chinese named “Tian Yu Zhou” bought a luxury house in Vancouver’s Cape Gray for 31.1 million Canadian dollars (157 million yuan) earlier this year, which also set a record for the highest transaction price for a luxury home in Vancouver this year, shocked Canada. At the same time, the documents show that Tian Yu Zhou’s career is also a “student”.
From this point of view, Zhou students can be regarded as the first of the “Gray Point Nine Young people” (just kidding). At a press conference on Wednesday, David Eby also cited the party’s study of 172 residential transactions in the Cape Gray area. The data show that the owners of nine high-priced properties in the Wenxigai area are students, of which six are registered owners, and the other three are dual owners, which are jointly owned by businessmen and students, businesswomen and students, unmarked professionals and students.
Although there is no convincing evidence from Canadian officials on how much role Chinese buyers have played, Canadian officials said in a central bank report that demand from foreigners “does drive up house prices. This has led to a rise in home loans”; but Canadian house prices are indeed rising at a rate visible to the naked eye.
Vancouver is the sixth most expensive city in the world, according to a ranking based on the “price-to-income ratio” released by US economic consulting firm Longview Economics on Sept. 15, foreign media CNBC reported.
If you take a closer look at the trend in recent years, you will find that house prices in Vancouver always had ups and downs and remained roughly stable until 2016, but suddenly began to soar since 2016!
The government has to step in to control. Since Aug. 2, Canada’s BC province has imposed an additional 15 per cent housing transfer tax (property transfer tax) on overseas real estate investors, which is limited to the Greater Vancouver area, which has the largest number of foreign investors in BC province and Canada as a whole.
The effect of the “exclusion tax” was immediate. According to previous reports on Wall Street, house prices in Vancouver, which had risen for the 18th month in a row (2.3% in July), fell 20.7% in mid-August, according to Wall Street. In the first two weeks of August, property sales in the greater Vancouver area fell 85%.
Two weeks ago, the average house price in Vancouver fell to C $1.47 million (US $1.13 million), the lowest level since September 2015.
As mentioned earlier, David Eby raised questions at the press conference. He said there was no sign that the students had declared their income to support the loans, so how could Canadian banks provide such high loans to students?
“is it the policy of the Bank of Canada that allows international students to speculate on real estate in Cape Gray?”
“I think the problem of bank lending is the main reason for the surge in house prices in Canada.” He called on the authorities to strengthen the supervision and management of real estate transactions, and special buyers should prove the source of their purchase funds.
In fact, when I heard about Tian Yu Zhou, I had a lot of doubts about the fact that students without a formal job could borrow millions of Canadian dollars to buy a house. At that time, every editor noticed that Imperial Commercial Bank of Canada had the following requirements for applying for housing mortgage loans: income and work proof; income level must be able to pay installments; at least 5% down payment.