thinktom (a local realtor) at RE Talks 23 Jan 2011 4;38pm – “One of the owners of a large west side RE company has a friend in Hong Kong who’s been living there 20 yrs. He says that the ‘official travel destination’ status from the Chinese government, combined with a restriction on investing in China RE, has opened the flood gates to dumping money into Vancouver real estate. He says ‘it’s only the beginning’.”
Is this an anecdote or a rumour? (Regardless, it’s a third hand opinion).
Is the ‘owner of a large west side RE company’ an informed insider or a biased observer?
And here’s another related story, this time from unicas at RE Talks 23 Jan 2011 10:05am ‘The Wenzhou ladies may be coming’ – “Wenzhou is a small city in Southeast China. But Wenzhou people are feared in China both as fierce business competitors and real estate buyers. 30 years ago, they were among the first Chinese who set up private business shops. They calculated profit by fraction of a penny. For the past decade they have been known as bigshot condo buyers. They form teams of RE buyers, go from city to city in China, and bring up prices wherever they go.”
unicas quotes from this article from the Financial Times, ‘Chinese city allows personal investing abroad’, 10 Jan 2011 – “A Chinese city celebrated for its cut-throat entrepreneurs has launched a pilot project allowing individuals to invest directly overseas in a move that could signal greater opening of the country’s tightly controlled capital account. The eastern city of Wenzhou will allow individual residents to spend up to $200m a year in offshore investments, according to an announcement on the city government’s website.”
Okay, so, the Redcoats!, or the Tartars!, or the Russians!, or the Zombies!, or the [your scariest nightmare adversary here!] are coming!
Before we all start quaking, note this passage from the end of the article: “Wenzhou investors spent around Rmb5bn buying assets in Dubai before the real estate bubble burst there.”
As we’ve said before, the vast majority of ‘hot’ foreign buyers are dumb-money momentum investors who will high-tail it out of here when prices eventually turn south. It’s a force and a story that will make our bubble ‘n bust that much more extreme.