“My contact mentioned the average sale price of this realtor must be around ~500k for past year. Definitely not fitting the “rich china” profile.”

We know that locals have speculated on Vancouver RE while convincing themselves that Asian investors want to buy here, but we still aren’t really able to quantify the direct effect of Asian money coming into our RE bubble. -vreaa

From the Globe and Mail story ‘Chinese investors eye Canadian housing boom’, 14 Feb 2010 7:08 pm

“While Chinese residents have long looked to Canada as a site for their capital, and while they have been buying steadily in the Vancouver and Toronto real estate markets for years, the combination of a clampdown at home and a blazing hot market in this country is spurring even more interest.”

“The prospect of any sort of slowdown makes a pool of potential overseas buyers that much more attractive to [Canada’s] real estate industry.”

“To tap into the demand, Century 21 will unveil a new Chinese version of its website this week, the first major real estate company to do so in Canada. The site is the cornerstone of a strategy that will see the company increasingly marketing properties directly to consumers in mainland China. “Right now, our focus is on serving Chinese clients in Canada,” said Mr. Lawby, who is also president of Century 21 Asia Pacific. “However, a byproduct is that Canadian listings will be more visible to buyers from around the world … there’s always a need for a safe haven to place money and invest.” Vancouver agent William Nip estimates he sells 40 properties to Chinese nationals each year, a number that has increased every year since he started dealing in property 17 years ago. So far this year, most of his clients are looking to spend up to $2-million on premium properties.“The bubble in China is already very big, so the government is encouraging them to take their money and spend somewhere else,” said Mr. Nip, who works at Sutton Group West Coast Realty.”

gse36 on RE Talks 14 Feb 2010 6:09 pm commented on the above article –

“It would be really nice to quantify things though — rather than just speculation, buzz, and anecdotes. [I’ve seen data from] landcor, but I’m not sure how accurate that is (i.e. don’t know how the figures are collected, and whether this is reliable, because,  if it is, foreign ownership is minuscule. One of my realtor contacts works in William Nip’s (the realtor mentioned in the story) office. He insists that the guy sold ~25 TOTAL (i.e. mainland china + non mainland china) last year on mls. So if he has sold over 40 (as stated in article) to mainland china people, then he must be doing off-mls stuff, like presales (which doesn’t capture the west side, richmond, and burnaby houses which china people are supposedly buying). Also, my contact mentioned the avg sale price of his must be around ~500k for past year. Definitely not fitting of “rich china” profile. Anyhow, to try to substantiate this, I went to William Nip’s website. The info I was provided seems consistent with [the above] as he lists 54 past sales, and none of them are super $$$ (avg price does seem to be 450-550k). And the mls #’s date back to like early 2004’s. He only has 6 active listings (which are not sold), and most expensive residential is $1.09M.”

One response to ““My contact mentioned the average sale price of this realtor must be around ~500k for past year. Definitely not fitting the “rich china” profile.”

  1. Foreign money coming in, helping to inflate prices beyond the means of the local residents? Sounds like Dubai all over again — of course we all know that this time it will be different, and we all know that what our grandparents said about borrowing money was really just a lot of nonsense, don’t we?

    The Chinese will buy in Vancouver if they can’t afford to buy at home. That makes sense, but they are probably speculators waiting to flip their purchases or buying to rent out. Wait until China experiences a slow down and the cash streams dry up.

    I would be interested to see what the debt profiles of many buyers are like — in addition to Everest sized mortgages, how much do they have running on credit cards? A population deeply in debt is a very sad group. Worse, the people stop spending money in stores, restaurants, vacations, etc. Be afraid, be very afraid.

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