With Canada continuing to experience a hot housing market across the country’s major cities, realtors say the recent approved destination status (ADS) agreement signed between China and Canada could further boost home sales.
The ADS designation means that Canada can receive group travellers from China rather than just individuals, and that Canada can now be marketed as a destination within China itself, a rapidly expanding marketplace.
“Definitely I think there will be an increase in interest in property here [because of the ADS agreement]”, says Vancouver-based realtor Sharon Lum.
The first tours, consisting of more than 370 people, arrived in Vancouver in mid-August. After sightseeing around Vancouver, the visitors divided into groups and headed to different destinations across the country.
Richmond-based realtor Sophia Zhou says the agreement will give more mainland Chinese access to Canada and as a result spur property sales. Mainland Chinese are attracted to Canada’s democracy, and potential buyers consider Canada “a safe environment” to invest in, she says.
“Right now there is so much free capital out there and they want to find a safe place to park their funds. I would say that a lot of Chinese clientele that I’m dealing with would like to own a piece of property in North America, and Canada seems like to them the easier and safer destination.”
A 2009 Conference Board of Canada survey suggests a 50 percent increase in travel numbers to Canada from China by 2015.
British Columbia is particularly popular with Chinese tourists. Last year, of the 160,833 Chinese visitors who came to Canada, more than half visited the province. The ADS is expected to increase Chinese visitors to B.C. by 10 per cent in 2010, 15 per cent in 2011, and an additional 15 per cent for 2012.
“I personally think the Lower Mainland, especially Richmond, will become the major destination for most of them,” says Zhou.
One of the main reasons Chinese buy real estate in Canada, Zhou adds, is so that they can have a residence where their children can live while attending school here.
Real estate lawyer Mona Chan has seen this trend since the 1980s, well before the Hong Kong handover in 1997.
Although house prices in B.C.’s Lower Mainland have been among the highest in the country for some time, this hasn’t deterred Chinese buyers. Lower Mainland prices compare favourably with some of China’s major cities, says Chan.
“Asians prefer to invest in B.C., because if you’re looking at the price of real estate and if you do a comparison for the price of real estate in a place like Beijing or Shanghai, they’re going to think that it is better value to by a property here in Vancouver, and that’s going to continue.”
She adds that protection of human rights is an important factor in why Chinese investors seek real estate in Canada.
“I truly believe that Canada’s Charter of Rights and Freedoms is fundamental to what is attractive for the Chinese who immigrate here and for anybody from around the world that immigrates here.
Whether they choose to come to Canada because they have the ability to invest in Canada, whether they are coming here as a skilled worker, or whether they’re coming here even as a refugee, they’re choosing a different country to go to. Canada’s Charter of Rights and our democracy is fundamental to that choice.”
High-end property in both Vancouver and Toronto is becoming so popular with China’s burgeoning affluent class that groups of wealthy Chinese tourists are scheduling visits to the cities solely for house hunting.
According to the Vancouver Sun, China-based Internet sales company SouFun organized two tours from Beijing and Shanghai—each with about 20 house hunters—to visit Vancouver and Toronto in August to look for “million-dollar or multi-million-dollar” listings.
First reported by Vancouver’s Ming Pao Daily News and repeated on the news blog Chinese in Vancouver, a SouFun spokesman said potential buyers are especially interested in neighbourhoods with “famous” schools or ocean views, according to the Sun.
Dan Scarrow, vice-president of strategy for Macdonald Realty in Vancouver, told the Sun that he is aware of other such trips that have been arranged in the past. But rather than prompting a buying spree, he said the trips instead provide the prospective buyers a chance to get an idea of what types of homes are available and what neighbourhoods are like before applying for landed immigrant status.
“It’s more of an introduction service [to Canada],” he said.
The ADS designation means that Canada can receive group travellers from China rather than just individuals, and that Canada can now be marketed as a destination within China itself, a rapidly expanding marketplace.
“Definitely I think there will be an increase in interest in property here [because of the ADS agreement]”, says Vancouver-based realtor Sharon Lum.
The first tours, consisting of more than 370 people, arrived in Vancouver in mid-August. After sightseeing around Vancouver, the visitors divided into groups and headed to different destinations across the country.
Richmond-based realtor Sophia Zhou says the agreement will give more mainland Chinese access to Canada and as a result spur property sales. Mainland Chinese are attracted to Canada’s democracy, and potential buyers consider Canada “a safe environment” to invest in, she says.
“Right now there is so much free capital out there and they want to find a safe place to park their funds. I would say that a lot of Chinese clientele that I’m dealing with would like to own a piece of property in North America, and Canada seems like to them the easier and safer destination.”
A 2009 Conference Board of Canada survey suggests a 50 percent increase in travel numbers to Canada from China by 2015.
British Columbia is particularly popular with Chinese tourists. Last year, of the 160,833 Chinese visitors who came to Canada, more than half visited the province. The ADS is expected to increase Chinese visitors to B.C. by 10 per cent in 2010, 15 per cent in 2011, and an additional 15 per cent for 2012.
“I personally think the Lower Mainland, especially Richmond, will become the major destination for most of them,” says Zhou.
One of the main reasons Chinese buy real estate in Canada, Zhou adds, is so that they can have a residence where their children can live while attending school here.
Real estate lawyer Mona Chan has seen this trend since the 1980s, well before the Hong Kong handover in 1997.
Although house prices in B.C.’s Lower Mainland have been among the highest in the country for some time, this hasn’t deterred Chinese buyers. Lower Mainland prices compare favourably with some of China’s major cities, says Chan.
“Asians prefer to invest in B.C., because if you’re looking at the price of real estate and if you do a comparison for the price of real estate in a place like Beijing or Shanghai, they’re going to think that it is better value to by a property here in Vancouver, and that’s going to continue.”
She adds that protection of human rights is an important factor in why Chinese investors seek real estate in Canada.
“I truly believe that Canada’s Charter of Rights and Freedoms is fundamental to what is attractive for the Chinese who immigrate here and for anybody from around the world that immigrates here.
Whether they choose to come to Canada because they have the ability to invest in Canada, whether they are coming here as a skilled worker, or whether they’re coming here even as a refugee, they’re choosing a different country to go to. Canada’s Charter of Rights and our democracy is fundamental to that choice.”
High-end property in both Vancouver and Toronto is becoming so popular with China’s burgeoning affluent class that groups of wealthy Chinese tourists are scheduling visits to the cities solely for house hunting.
According to the Vancouver Sun, China-based Internet sales company SouFun organized two tours from Beijing and Shanghai—each with about 20 house hunters—to visit Vancouver and Toronto in August to look for “million-dollar or multi-million-dollar” listings.
First reported by Vancouver’s Ming Pao Daily News and repeated on the news blog Chinese in Vancouver, a SouFun spokesman said potential buyers are especially interested in neighbourhoods with “famous” schools or ocean views, according to the Sun.
Dan Scarrow, vice-president of strategy for Macdonald Realty in Vancouver, told the Sun that he is aware of other such trips that have been arranged in the past. But rather than prompting a buying spree, he said the trips instead provide the prospective buyers a chance to get an idea of what types of homes are available and what neighbourhoods are like before applying for landed immigrant status.
“It’s more of an introduction service [to Canada],” he said.
