2012
“Wenzhou money is now in Vancouver. An article from Vancouver’s chinese media talked about groups of businessmen from Wenzhou are in Vancouver now and purpose of their trip is to buy properties. One agent by the name of Zhang Wei Bin of Sutton picked up 4 parties at the airport alone on Monday, the first day of the year of dragon. Starting on Tuesday, they have started to look at ocean view properties in West Van, most in $5 million range, including one at 2400 Halston Crt, which those businessmen consider very cheap, comparable properties cost 3 times more in China.
Most of you may never have heard the city. It is the birth place of current day capitalism in China and it is estimated the residents of the city have amassed over $90 billion investable capital, people from Wen Zhou are known as fierce business competitors, and fearless properties buyers. Wen Zhou housewives formed buying teams and go from city to city to buy big chunk of new development projects and sell later for profit.”
- unicas at RE Talks 26 Jan 2012 8:44pm
—
2011
“The Wenzhou ladies may be coming. 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 whereever they go. And for the first time ever, they are allowed to invest directly overseas. So the suit case for cash will not be needed anymore. And “I buy 3, husband buy 3 thing may not be evening news material anymore. The money they are allowed to invest oveaseas may not initially sent out of the country in the name of RE investment, eventually most of the money will find their way in some kind of real properties.”
- unicas at RE Talks 23 Jan 2011 10:05am
—
Well, they certainly have more inventory to choose from this year.
Any news on how Wenzhou Chinese stock market and RE investments have done over the last 12 months?
What do these guys do when they’re holding assets in falling markets?
- vreaa
Oh, please. Why not just say “the money launderers are coming” and have it out in the open?
Wenzhou articles:
http://worldhousingbubble.blogspot.com/search?q=wenzhou
Now we know how the natives felt when the Europeans came!
the difference is that we have a central government in place
and it totally listens to the people on issues
Glad to know the Wenzhou housewives are going to drive out more people who grew up here. (sarcasm)
http://www.theprovince.com/business/Young+families+pull+stakes+better+life/6060161/story.html
Those whiners! Why don’t they get a million dollar mortgage and buy an East Side teardown like responsible adults!
One can’t tell if this is hype or what.
It’s true I was at UBC yesterday and yet another new luxury-shoebox building there put up by Adera had all the literal red carpet out for what I assume they think are CNY customers — the reception area was painted red, there were red and gold CNY decorations everywhere, and of all the people I saw there, coming and going — many young men and women, some couples, very expensively dressed, getting in and out of expensive cars — I was the only person whose Mandarin wasn’t good enough to converse in! (Being a bear, of course I’m not interested in buying. Just doing some research.)
I just wonder what UBC is going to do with all that “market housing” once the bottom falls out of the market and investors start fleeing. Perhaps they’ll offer apartments to staff members who can’t find affordable housing anywhere near their workplace.
UBC might find itself in a heap of trouble… unless they’ve already pulled out enough profit from their speculation and have put it somewhere safe to hedge against disaster.
In other words, if they’ve been pacing themselves and have been prudent about the money that they’ve made, they might come out the other end intact.
But yeah. I spend quite a bit of time there these days (and used to work there about a decade ago). I’m not sure if “impressive” is the right word, but something like that describes the scale of the real estate speculation that’s been going on there in the past while.
“getting in and out of expensive cars”
One does not want to bite the hand that feeds one, as I’m sure a senior bureaucrat would say.
I do wonder why a major university like UBC feels it has to depend on the sale of market housing to pay its bills. Is this a reflection of other phenomena I see discussed on this blog, about Vancouver not really being self-supporting (in terms of industries, etc.) and thus reliant on gambling proceeds and RE?
“Perhaps they’ll offer apartments to staff members who can’t find affordable housing anywhere near their workplace.” – Vesta
Funny old world, Vesta… ‘Cuz – as it happens – at least one [former] UBC staffer had discovered a novel way to circumvent the ‘staff housing dillemma’…
[CBC] – Stole $460K, UBC staffer sentenced to house arrest
“A former University of B.C. financial manager has been sentenced to two years of house arrest for stealing $460,000 from a university medical department.”…
http://tinyurl.com/72yzxyf
Interesting that it was a financial manager! Does that also say something comic about the economy here?
Well, at least he was smart enough to steal from a medical department, as those are probably the wealthiest!
But for embezzling half a million dollars, he gets only house arrest?
“Wen Zhou housewives formed buying teams and go from city to city to buy big chunk of new development projects and sell later for profit.”
I wonder if they’ve ever experienced the bursting of a bubble? i.e. what will they do if they can’t sell for a profit?
Unless they managed to invest in Hong Kong in the late nineties (doubtful) they have not seen a market go down. That’s my understanding anyway.
“what will they do if they can’t sell for a profit?”
They would go and trash the condo development sales office, or the realtor office or whatever scapegoat they can find.
http://articles.latimes.com/2011/dec/13/business/la-fi-china-housing-bubble-20111213
I was heartened by the online mockery in China of these people. Jokes about asking the broker for money back after a stock had gone down, for example.
yes,
one thing for certain is that the 1% are the subject of intense ridicule in china
it’s just unfortunate that we are told everything is so harmonious
China money is here but it won’t stop the bursting of the bubble. The ones who bought early might lose some skin but when SHTF the ones late to the game will vultch and win.
According to mingpao, BC had a population growth of 1%, and the LML 1.3% (30,000 more than 2010).
- Surrey, an increase of 11,027 or 2.4%
- Vancouver city, 8,391 or 1.3%
- Burnaby, 2,141 or 0.9%
- Coquitlam, 1,227 or 1%
- New West, 1,007 or 1.5%
- Richmond, 830 or 0.4%
Total Lower Mainland = 30,970 or 1.3%
http://www.mingpaovan.com/ftp/News/20120127/_table1.jpg
http://www.mingpaovan.com/htm/News/20120127/vas2.htm
According to StatCan – 2011 population growth for BC as a whole is running 12,000 less than 2010 at roughly 40,000 with Q311 net provincial migration continuing negative as more BC residents leave than arrive.
http://www.statcan.gc.ca/pub/91-002-x/2011003/t330-eng.htm
So something doesn’t add up with minpao’s numbers.
Thanks for the numbers, Airedales.
Either one of them is a liar, or is privy to the 2011 Census that will be made public only on February the 8th.
here is a completely different take on these magical “investors”
“Wenzhou investors rush to sell property for ready cash” (if they are so property horny why would they be swapping bubbles?)
http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20111029000012&cid=1102
How business savvy are these Wenzhou suckers, if they are buying up Van RE at the highest price point in history – wikipedia excerpt:
A popular saying calls Wenzhounese the “Jews of the Orient” (东方的犹太人). Wenzhounese have been stereotyped by other Chinese as real estate speculators. China Daily notes that investments from Wenzhounese buyers play a disproportionately large role in the increase in Chinese property prices.[14]
No mention of Canada or Vancouver…
http://www.wantchinatimes.com/news-subclass-cnt.aspx?cid=1102&MainCatID=11&id=20120127000098
What do these guys do when they’re holding assets in falling markets?
Why, they calculate their losses to a fraction of a penny, of course.
hahaha
Good one.
http://english.peopledaily.com.cn/90778/7603606.html
“Hu Fulin – Involved in real estate speculation, he owed debts up to 2 billion yuan ($313 million) and fled to the United States.”
http://www.chinadaily.com.cn/opinion/2011-09/30/content_13828290.htm
great post, great links
keep it up
i hold rand paul’s hand every night
what i find most absurd about the ‘chinese love to travel to europe for luxury brands’ is exactly that..
wouldn’t want to have a look around at any of that culture, art or heritage of civilization or anything..
why, you’ve got your own, and it’s all just 61 years old, since mao squeezed it all out from betwixt his loins
The recent article on Chinese luxury-good buyers dominating the UK January sales emphasized how they tended to move from one brand to another.. Fendi, then Chanel, then etc. Possibly could extend to flavour-of-the-year in RE, too.
Maybe they’ll switch to lululemon one day!
re: muscle tone
Just read an article in the NY Times about the deplorable conditions of Chinese factories and how Apple is turning a blind eye to the corruption of the factory owners. Yet nobody ever questions how these “investors” arrived at these fortunes they are so wrecklessly spending.
I’ve consulted in retail and it is the consumer who demands lower pricing and therefore, how a product is made. Canadian big box retailers try to regulate factories, but the consumer keeps wanting a lower price and doesn’t seem to care how it’s made. The margins are constantly squeezed by retailers, who demand more from the wholesalers importing from off shore factories. Some major chains do demand fair wages and conditions for workers at their supplier factories, but it takes a lot of oversight. Many factories pay bribes to avoid inspection. In the end, the consumer can walk down the street and buy a product cheaper that has no factory inspection. I have no doubt that Apple would be fully aware of their factory conditions and are turning a blind eye to the mess.
Anecdotal to the greed gene in general.
I followed some links above and found this also interesting. http://www.wantchinatimes.com/news-subclass-cnt.aspx?cid=1102&MainCatID=11&id=20120119000111