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The Decline of Chinese Real-Estate Investors in Vancouver - BC Business

The Decline of Chinese Real-Estate Investors in Vancouver

The Decline of Chinese Real-Estate Investors in Vancouver Ashley Nielsen Vancouver, British Columbia Canada, real estate

News Provided By BC Business

“Chinese investors have fled the real-estate market, but they’ll be back".

"Mainland Chinese investor buyers have all but disappeared from Vancouver’s real-estate marketplace, and their unexpected departure has left many developers, real-estate agents and construction trades with postponed plans and shelved strategies. The sudden absence of the once-omnipresent Chinese investor has also meant no media photo ops of buyer lineups and a softening market in metro Vancouver.

It’s my opinion, however, that when mainland Chinese buyers return to Vancouver it will be a feeding frenzy due to pent-up demand. And they could return as soon as the next six to 12 months, depending on when – not if – the Chinese government changes its tight mortgage-lending policy. The People’s Republic of China is slated to name a new leader in 2013 and historically every change in leadership brings with it new policies to create its own legacy. Of course, the Chinese government is not democratically elected by the people, meaning they get to do whatever they want, whenever they want, without civic input.

Here’s a little background: Vancouverites consider real-estate prices high, but in China during the first decade of the new millennium they were astronomic. So in 2009 the Chinese government introduced a policy designed to cool investor speculation in real estate while allowing ordinary citizens to buy their own home. This policy stipulated that buyers could purchase their first home with 30 per cent cash down, but if they bought a second property it would require a whopping 60 per cent down payment. That move halted the investor market in China and prices dropped by 30 to 40 per cent in major centres such as Beijing and Shanghai.

While it did allow many citizens to buy their own home, it also greatly reduced the amount of cash investors had to invest in real estate. If you’d just lost 40 per cent of the cash value of your Guangzhou condo, why would you buy two more in Burnaby?

Last Chinese New Year is when Vancouver real-estate developers and marketers first noticed the absence of the mainland Chinese buyer, as this is typically when they visit Vancouver and go on a shopping spree. But they went missing this past February, a telltale sign that the government’s strict policy was working and that the overall economy was slowing down.

The reality in China is that the real-estate industry accounts for a hefty 11 per cent of the country’s overall GDP. If you include related industries like appliances and furniture, it increases to between 22 and 25 per cent. The People’s Republic of China simply cannot afford to have the important real-estate industry stall and its economy go sideways, which is why I believe that, in short order, the government will start relaxing the restrictive lending policies, investors will start getting back into the market and, as their assets become more liquid, we’ll see them return to metro Vancouver. When China’s real-estate market returns to brisk buying and selling, many Chinese will once again look for a safe haven to park their newly regained wealth.

Vancouver is poised to become one of the biggest, if not the biggest, beneficiaries of that wealth looking for a new home. When asked why they like Vancouver, many Chinese investors have told me that they prefer to invest here because Vancouver is “safe” and “nothing bad ever happens here.” The sudden rise and fall in real-estate prices we’re seeing now in China, as well as fluctuations in the overall economy, mean that people view investing there as no less risky than placing bets on a baccarat table. It also means that parking money in Vancouver feels to them as safe as investing in treasury bills.

While the policy change has impacted investors’ cash flow in the short term, it hasn’t curbed their enthusiasm for Vancouver real estate. The Chinese government is predicted to have a change in leadership this fall and after that change, I believe, we will see major changes in the country’s mortgage-lending policies and the return, once again, of the Chinese investor.”

Source: BC Business

Ashley Nielsen - Prudential Realty - Vancouver Real Estate - Chinese Buyers / Investors from immigration canada

 

中国房地产投资者在温哥华的衰落
由公元前商业新闻提供
“中国投资者纷纷逃离房地产市场,但他们会回来的。
中国内地投资者的购房者都消失了温哥华的房地产市场,和他们的突然离开,留下了许多开发商推迟计划及搁置的战略,房地产代理及建筑行业。一度无处不在的中国投资者的突然消失,也意味着没有媒体拍照的买家阵容和软化的市场,大温哥华地区。
这是我的意见,但是,当中国大陆买家返回温哥华这将是一个疯狂饲养,由于被压抑的需求。他们可以返回,尽快在未来6至12个月,根据时 - 没有如果 - 中国政府改变其收紧按揭贷款政策。中国人民共和国计划在2013年和命名一个新的领导者,历史上的每一个变化领导带来了新的政策,创造自己的传统。当然,中国政府不是由人民民主选举产生的,这意味着他们可以为所欲为,只要他们想,如果没有公民的输入。
这里有一个小背景:温哥华考虑房地产价格高,但在中国,在新千年的第一个十年,他们是天文数字。因此,在2009年中国政府出台了政策,旨在冷却投资者的房地产投机,而让普通市民买自己的家。这项政策规定,买家可以购买他们的第一家,下降30%的现金,但如果他们买了第二个属性,它需要一个高达60%的首付。这一举动停止了在中国的投资市场,价格下跌了30%至40%的主要中心,如北京和上海。
虽然这确实让不少市民买自己的家,这也大大降低了投资者投资房地产的现金数额。如果你只是失去了40%的广州公寓的现金价值,你为什么会在本拿比买两个吗?
最后中国新年是温哥华房地产开发商和营销时,首先注意到的情况下,中国大陆买家,因为这通常是,当他们访问温哥华,去疯狂购物。但他们失踪在今年二月,严格的政策,政府的工作和整体经济放缓的一个迹象。
在中国的现实是,房地产行业占了沉重的国家的整体国内生产总值的11%。如果您有相关的行业,如家电和家具,它增加了22%和25%之间。中国人民群众的根本可以不买得起到具有的重要房地产行业失速和经济横着走,这是为什么我认为,在短期内,政府将开始放宽了严格的贷款政策,投资者将开始获得回成市场和他们的资产变得更具流动性,我们可以看到他们重返地铁温哥华。中国的房地产市场回报轻快的买入和卖出时,许多中国人将再次停其新获得的财富寻找一个安全的避风港。
温哥华有望成为最大的之一,如果不是最大的,寻找一个新的家,财富的受益者。当问及他们为什么会喜欢温哥华,很多中国投资者都告诉我,他们喜欢来这里投资,因为温哥华是“安全”和“没什么不好在这里从未发生过。”我们现在看到的房地产价格的突然上升和下降的中国,以及整体经济的波动,意味着人们看待投资风险小于下注百家乐表上。这也意味着,在温哥华停车的钱感觉安全的,因为投资于国库券。
虽然政策变化在短期内影响投资者的现金流,但并没有遏制温哥华房地产的积极性。中国政府预计将有领导的变化,今年秋天后的变化,我相信,我们将看到在该国的按揭贷款政策和返回,再次重大变化,对中国的投资者。“

 

 

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