08 Jan Chinese Buyers In The Canadian Market
Chinese Buyers In The Canadian Market
Chinese buyers in the Canadian market features the recent report “China to Canada: International Home Buyer Insights”, jointly created by Sotheby’s International Realty Canada and Juwei.com, China’s premiere international property portal.
The report uncovers the prospective interest in home buyers from mainland China in terms of pricing, motivation, and levels of interest between conventional and top-tier real estate in Vancouver, Calgary, Toronto and Montreal. The report does take into account the impacts of the recently imposed 15% property transfer tax on foreign buyers in Metro Vancouver.
Some Key Takeaways:
Education was the most commonly cited motivation for Chinese interest in Toronto, Vancouver and Montreal followed by personal use.
The single highest motivation for Juwai.com property enquirers interested in Calgary real estate was “own use”, at 62%.
27% of Toronto and Vancouver enquirers, and 23% and 21% of Montreal and Calgary enquirers, indicated that investment was a motivation.
Immigration was the least frequently cited motive.
57% of Juwai.com property enquiries in Vancouver, 67% in Calgary, and 68% in both Toronto and Montreal fell below $655,050 ($500,000 USD) in 2016.
The median prices for Juwai.com property enquiries –$590,200 in Vancouver, $531,115 in Calgary, $458,928 in Toronto and $488,012 in Montreal
After the imposition of the 15% tax in Vancouver, there was a noticeable shift in the market;
Vancouver listings enquiries on Juwai.com fell 81% year-over-year in July 2016, the month the foreign buyers’ tax was announced, and 78% year-over-year in August when the tax took effect.
Sotheby’s International Realty Canada experts observed that increased interest from Chinese property enquirers did not result in matching surges in sales activity from this cohort in alternative markets.
The results were somewhat different in properties 1 Million and over;
In Vancouver property enquiries for real estate over $1 million fell 67% year-over-year in the third quarter of 2016 in the month the 15% foreign buyers’ tax was implemented, but rebounded with an 18% year-over-year increase in the last quarter
Toronto properties over $1 million experienced only a nominal, 2% year-over-year uptick on Juwai.com in the third quarter of 2016 following the implementation of the Vancouver foreign buyers’ tax, before ending the fourth quarter with enquiries up 18% year-over-year
As in the case of the conventional real estate market, rising interest in luxury real estate in Toronto, Calgary and Montreal did not result in matching gains in sales activity.
Read or download the full Sotheby’s International Realty Canada Report