Ads Google

Chinese buyers now prefer Quebec, Alberta, and Nova Scotia

by Ephraim Vecina on 07 Mar 2019

Real estate markets in Quebec, Alberta, and Nova Scotia are becoming increasingly popular among Chinese property buyers and investors, according to a new analysis by

“The Chinese buyer boom in Montreal began earlier and is larger than in other second-tier cities. However, some smaller markets saw bigger Chinese buyer booms on a relative basis during 2018,” CEO and Director Carrie Law said.

All in all, Chinese-home buying intentions across Canada went up by 8% annually in 2018, with recovery in the second half of the year making up for a noticeable slowdown in the first six months.

“Buyer demand was unevenly distributed throughout the year. The year began with buyer enquiries plummeting for two consecutive quarters. During the first quarter, enquiries fell 23.8% compared with the same quarter in 2017. In the second quarter, enquiries fell 20.2% compared with the second quarter of 2017,” Law explained.

“In the second half, demand reversed as Chinese buyer enquiries returned to growth levels. Buyer enquiries climbed 43.6% during the third quarter and by 45.1% in the fourth quarter, compared with the same periods during the prior year.”

Read more: Another Canadian city contemplates foreign buyer tax

Chinese inquiries for residential purchases in Montreal grew by 35.7% year-over-year. Calgary and Halifax had considerably greater increases of 234.4% and 394.0%, respectively.

“Until 2017, only a relative handful of buyers from mainland China [were] aware of Calgary and Halifax, and many fewer purchased property in them,” Law stated.

“That is changing, as Chinese buyers seek more affordable homes and to avoid high foreign buyer taxes. The property industry in these cities is also increasingly making efforts to market to buyers from China. They are successfully marketing local real estate in terms of affordability, lifestyle, and educational institutions.”

In stark contrast, Chinese inquiries in Toronto noticeably fell by 10.3% annually in 2018, while Vancouver had a 2.8% loss.

“With steep foreign buyer taxes and high prices in Vancouver and Toronto, we have seen an increasing number of Chinese buyers shift to other cities in Canada,” Law said.

Post a Comment

Most Trending News

Why new housing development is exploding in Calgary

The Canada Mortgage and Housing Corporation's biannual Housing Supply Report highlighted Calgary as the Canadian city with the highest percentage growth of housing starts in 2021.

Read More
Ending exclusionary zoning would boost the housing supply

Roughly 70 per cent of Toronto is zoned for detached houses only, which restricts the number of units that can be built.

Read More
Bank of Canada raises interest rate to 1.5%, and what it means for your mortgage

This week, the Bank of Canada announced an increase to their policy interest rate of 50 basis points, amounting to a total of 1.50%. That means interest rates are now six times higher than they were at the start of the year.

Read More