Chinese Buyers Continue To Make An Impact On The Canadian Luxury Real Estate Market
Chinese buyers have been a driving force in the Canadian and American luxury real estate for several years, and despite China’s economic concerns, little is expected to change when it comes to their desire to purchase North American luxury estates.
Many attribute the surge in foreign investment to the devaluation of the Chinese stock market and weaker economy. The recent stock market crash wiped almost $10 trillion from the international market, which hurt many investors. Some shifted their investment tactics toward foreign real estate before they were hit by losses, and others are only beginning to focus their attention on Canadian and U.S. luxury real estate.
Demand for luxury real estate in Canada has risen steadily, and according to a report from Concierge Auctions, sales of condominiums over $1 million grew by 56% from 2014 to mid-2015, while attached family home sales rose by 48% and detached single-family home sales increased by 20%.
The rise in demand in both the U.S. and Canada can be attributed to a number of factors, including foreign investors. Chinese buyers are the third largest segment of High Net Worth homeowners in the U.S., reported Concierge Auctions, and currently own a significant number of luxury properties in Toronto, Montreal and Vancouver. During the first half of 2015, sales of Vancouver properties priced over $4 million increased by 71%, and sales of properties priced between $2 and $4 million increased by 52% when compared to 2014 figures.
Furthermore, Chinese buyers paid a median of $520,000 per home, whereas U.S. buyers paid a median of just $199,000 and Canadian buyers a median of $212,000. This is good news for Canadian sellers who can capitalize on the amount these investors can offer.
If you’ve been thinking about purchasing a luxury estate in the GTA, Hammond International Properties would be pleased to help you find exactly what you’re looking for. Please contact us today at 1.877.702.7870.