This is a friendly, interactive exchange of information on all Real Estate related subjects. Follow on Twitter: @RETALKS


Moderator: admin

 
unicas
Real Estate Talker
Topic Author
Posts: 1426
Joined: Mon Feb 25, 2008 10:35 pm
Contact:

Quantum leap in British Columbia by China investors expected

Sun Apr 06, 2014 8:43 pm

A “quantum leap” into foreign real estate by mainland Chinese investors is expected this year and three recent British Columbia sales show it may include a dive into recreational real estate.

Since January, buyers from mainland China have bought the Sechelt Golf and Country Club on the Sunshine Coast north of Vancouver [the price remains undisclosed]; a 43-acre island off the southern B.C. coast, for $2.5 million; and a riverfront equestrian centre in Langley for $5.5 million. Late last year, a Chinese travel company bought a downtown commercial lot in Nanaimo where it plans to build a $50 million hotel that will cater to Chinese tourists.

“It had been rare to see mainland China buyers purchasing recreational property in B.C,” said Mark Lester, senior vice-president of Jones Lang LaSalle Real Estate Ltd. Lester, who chaired a recent Vancouver panel discussion on Asian real estate investment in Canada. He believes the recent moves into recreational property reflect a “maturing” of China investors. “[They] have moved beyond houses on Vancouver’s West Side and Richmond.”

A study of outward bound Asian nvestors by Colliers International forecasts a greater diversity in locations and property sectors this year.

"Besides increasing global liquidity, the volume of outbound investments from Asia is being driven by both 'pull' and 'push' factors," explains Piers Brunner, CEO, Asia at Colliers International. Brunner said buyer are being pushed by new and tougher Hong Kong and China regulations on real estate investing and pulled by the potential of higher returns in foreign real estate markets

"Chinese outbound property investments beyond Asia really took off in 2009, and reached US$9 billion in 2013. We believe more Chinese developers will look overseas to support the needs of their local clientele," added Terence Tang, managing director of Capital Markets and Investment Services, Asia at Colliers International. "We think the world's 'gateway' cities will see a quantum leap in real estate purchases by Chinese buyers in 2014."

http://www.westerninvestor.com/index.ph ... s-expected
 
rofina
Real Estate Talker
Posts: 1552
Joined: Fri Feb 06, 2009 6:39 pm
Contact:

Re: Quantum leap in British Columbia by China investors expe

Sun Apr 06, 2014 8:51 pm

Maybe the quantum leap is been is large that all the buyers forgot to keep on buying West Van, Richmond, and Van West.
 
unicas
Real Estate Talker
Topic Author
Posts: 1426
Joined: Mon Feb 25, 2008 10:35 pm
Contact:

Re: Quantum leap in British Columbia by China investors expe

Sun Apr 06, 2014 9:07 pm

Maybe the quantum leap is been is large that all the buyers forgot to keep on buying West Van, Richmond, and Van West.
These investors are more likely sellers of West Van, Richmond and Van West houses. They normally would have been here as landed immigrants for 5-10 years, haven't done much except holdings a few houses in those areas, they feel by now that they start to understand this country, they realize there is not much momentum left in Vancouver's housing market, some of them are even sick and tired of being amateur land lords, they have seen there friends start to invest in real business, and they become really eager to jump in.

I have seen a wave of purchases of income producing properties by these people, and more to come. I am working with one group at the moment to close on a deal for a resort. Completion is May. Keep you eyes open for more to come.

Be prepared, if you happen to work in the hospitality industries, don't be surprised a new owner walks in the facility with a translator.
 
Austin
Real Estate Talker
Posts: 3353
Joined: Thu May 28, 2009 1:41 pm
Contact:

Re: Quantum leap in British Columbia by China investors expe

Mon Apr 07, 2014 12:58 am

Uncas, is this to qualify for new rules are under immigrant VISAS? My understanding Is that you can still get a visa, you just have to in invest in real businesses.
Redistribute consumption, not income.
 
rofina
Real Estate Talker
Posts: 1552
Joined: Fri Feb 06, 2009 6:39 pm
Contact:

Re: Quantum leap in British Columbia by China investors expe

Mon Apr 07, 2014 6:24 am

Maybe the quantum leap is been is large that all the buyers forgot to keep on buying West Van, Richmond, and Van West.
These investors are more likely sellers of West Van, Richmond and Van West houses. They normally would have been here as landed immigrants for 5-10 years, haven't done much except holdings a few houses in those areas, they feel by now that they start to understand this country, they realize there is not much momentum left in Vancouver's housing market, some of them are even sick and tired of being amateur land lords, they have seen there friends start to invest in real business, and they become really eager to jump in.

I have seen a wave of purchases of income producing properties by these people, and more to come. I am working with one group at the moment to close on a deal for a resort. Completion is May. Keep you eyes open for more to come.

Be prepared, if you happen to work in the hospitality industries, don't be surprised a new owner walks in the facility with a translator.

Very interesting!

Quite the departure for these gentlemen to move from rampant speculation in residential real estate to acquiring and managing commercial properties - which typically rely on some ever lasting fundamentals. Ones that around these parts are sometimes likened to nails on a chalkboard.
 
User avatar
jesse1
Real Estate Talker
Posts: 5097
Joined: Mon Feb 18, 2008 12:51 pm
Contact:

Re: Quantum leap in British Columbia by China investors expe

Mon Apr 07, 2014 8:34 am

Buying golf courses. Mmmkay... not like Japan in the late 80s at all. Totally different.

The most positive way of thinking about overpaying for real estate is that it's a form of wealth redistribution.
There is no shame in overpaying
 
unicas
Real Estate Talker
Topic Author
Posts: 1426
Joined: Mon Feb 25, 2008 10:35 pm
Contact:

Re: Quantum leap in British Columbia by China investors expe

Mon Apr 07, 2014 8:12 pm

Uncas, is this to qualify for new rules are under immigrant VISAS? My understanding Is that you can still get a visa, you just have to in invest in real businesses.
In the cases that I have worked with, those investors are landed immigrants. I would not be surprised provincial PNP visas are motives behind some other deals.

Yes it is quite a departure form betting on houses on the Westside. But those people are not dumb. They have been and still are business people, They may not used the charts, boards that we are accustomed to, they have their way of valuing business opportunities. I have seen some extremely successful cases, beyond the wildest projection of local experts. I haven't seen failure yet, I am sure there will be plenty. After all, it is tough to make it here.

Who is online

Users browsing this forum: Bing [Bot] and 33 guests