Montreal trumps Vancouver for China investors
Montreal will surpass Vancouver this year as the Canadian destination for mainland China-based real estate investors, according to China’s largest foreign-market real estate portal.
The data is based on 2017 property searches on juwai.com
, the No. 1 Chinese international property portal with more than two million monthly visitors from China. The survey revealed that the United States remains the top market for Chinese investors, with Canada in fourth place, ahead of the United Kingdom but behind Australia and Hong Kong.
In order of property searches this year, the top Canadian destination cities are Toronto, Montreal, Vancouver, Ottawa and Victoria.
Total foreign real estate investment by mainland China buyers in 2017 is projected at CAN $106 billion dollars, according to Juwai, which is down slightly from the record level of 2016 but on par with 2015.
Juwai suggests that the introduction of a 15 per cent foreign-buyer tax on Metro Vancouver real estate in August 2016 may have helped to bounce Vancouver out of its first-place standing for Chinese real estate investors. Ontario introduced a similar tax earlier this year.
According to a Juwai Limited survey of more than 2,500 Chinese consumers who inquired about Canadian property in 2017, the top reasons they are seeking to buy a home in Canada are education (24.2 per cent), investment (31.9 per cent), and own use, at 75.1 per cent.
Canada Mortgage and Housing Corp. (CMHC) estimates that buyers from China accounted for 17 per cent of all foreign home buyers in Montreal this year, up from less than 10 per cent a year earlier. Forty per cent of Chinese buyers in Montreal opted to purchase a single-family detached house, CMHC stated.
While increasing, the number of China-based buyers in Montreal represent just two per cent of total residential sales this year, notes CMHC analyst Francis Cortellinno.