Chinese Buyers Flock to Vancouver, BC

China's immense interest in Vancouver properties was first reported this past summer, now 3 months later, we see that the buyers were serious.

Housing prices in Vancouver's West Side are up 30%+ this past year, and the average home value is now over $1,800,000. A 6000 sq ft Lot with an old 2500 sq ft home, no view, are selling quickly for $1,600,000 and up. West Vancouver, average home value about $1,500,000 and home of some of Canada's finest Real Estate, is starting to see an influx in property sales, primarily driven by Chinese oversees Buyers. Recent sales include $8,000,000 on Hillside and $9,000,0000 in Altamont, neither property even close to the Waterfront. At this point a Buyers dollar goes a lot further on The Northshore, but Buyers are still skeptical about the Lions Gate Bridge access to the city center.

China-based Internet sales company SouFun started to organize trips to Vancouver for real estate-hungry groups of wealthy investors. The first two groups from Shanghai and Beijing, consisting of around twenty potential buyers, have been visiting Vancouver and Toronto since August. Needless to say, their interest have focused on million-dollar listings.

As reported by Canada-based Ming Pao Daily News, these buyers are especially interested in neighborhoods with ocean-views and neighborhoods with high-class educational institutions. Until now, Chinese bargain hunters mostly used conferences and business meetings as an opportunity to look around local listings. This is the first time the home-hunt is the sole purpose of visit.

Chinese Buyers are also very sensitive to traditional Feng Shui which include major deal breakers such as irregular lots, houses built at on a cul-de-sac or at a T-junction, houses built lower than the neighbors, front doors where guest can see right through the house upon entrance, having trees directly outside the front door, and having a straight driveway leading up the house. While most Canadians do not consider these things (in fact they can be positives) it is important to know them as it can greatly effect the value of your home when it comes time to re-sell because millions of Chinese hold these values sacred.

Why are they so attracted to come and live in Vancouver? Believe it or not, it is caused by the price level. Despite being at the top among Canadian markets when it comes to average price, Vancouver properties are cheaper compared to similar ones in Beijing or Shanghai. Canada boasts with high-quality education system, health care, safety and overall quality of life; therefore, it is one of the most favored destinations for rich immigrants, especially from Asia.

Despite accounting for around 80% of showings in some parts of Vancouver, Asian buyers will probably not turn on a shopping spree immediately. Most of them just needs to explore potential future home, only then will proceed with immigration. Still, many of them will become our neighbors in the near future and will fuel the property market, often Buying now and holding until their children can come and study in Vancouver.

Is the future a Chinese owned Real Estate sector with local Vancouverites as tenants? Many experts can see this unfolding but we will have to wait and see if the $1.3 Billion Chinese people continue pouring their money and relocating their families to Canada. Perhaps local government needs to tighten regulations to prevent a housing bubble creating widespread affordability concerns in what is already one of the most expensive cities in the World.