This city has the
largest Asian population outside Asia and the potential to be
'the Geneva of the Pacific' (why so many Private Bankers!).
Vancouver is perceived by sophisticated investors as a 'safe' place to
park money albeit not spectacular returns because the system
is not tax efficient and lacks the depth in management operating
skills on an international level. Although the city is not
without experienced global players generally speaking they may not be
part of the local establishment who rule the system including
high concentration of ownership of certain classes of prime real
estate. As in other cities and other continents, think
global, act local.
As a retirement
centre it is considered amongst the world's most livable with best
restaurants and chefs. Despite Local's
protest, housing in the spectacular setting is amazingly affordable
compared to similar in Shanghai,
Hong
Kong, London
or some of 太太
Tai Tai's other 'recreation-investment homes'.
The city is also well
known as place for Asian celebrities and tycoons to keep a low profile
& have some anonymity. A safe city, generally
speaking.
Vancouver, Canada is first destination
the Asian tycoons visit on their global tour to 'inspect' their overseas
assets. This pattern has been established now for several
decades. We received in Vancouver many luminaries from
overseas in the past.
The city is teaming with visitors from
Overseas and already we scheduling for the big vacation coming up
on January 23 - Chinese New Years when half a million Asians travel from
Asia.
Maison Louis Vuitton
was hopping today so no wonder they opened Canada's first in
Vancouver. The understated rich were sitting with their
private banker at Diva at the Met ;-)
Rich Chinese send Vancouver's real estate
prices soaring
They are bidding up limited number of
properties
The neighbourhoods are finally vibrant again instead of the usual empty
home manned by a house keeping or overseas servant. Condos
fees finally being paid now that the property manager can get attention of
the principal. He's too busy making zillions in Asia
where the economy is still projected 6%-8% growth (depends which region of
Asia with its 3.5 billion consumers) in 2012, which far surpasses the odds
in Europe or North America.
Consequently there are a LOT of real estate agents + even more private
bankers in the city because they know that Asians are parking their wives,
siblings and money overseas in a environment that honours the rule of law.
Asians, though are being blamed for the rapid rise in capital
values.
The country & city has much potential as more international
professionals move to the city for retirement. In the
continuing economic turmoil, Vancouver is well poised globally.
Its quality of life is routinely ranked among the best in the world,
but that's only one reason Vancouver real estate prices are red hot.
Wealthy Chinese anxious to raise their families in the West are bidding
up the city's limited number of properties in fashionable West side of Vancouver,
sending prices in the city soaring more than 50 per cent in the past three
years.
Last year, Canada issued 1,600 visas to Chinese investors looking to
move to British Columbia.
Su Yi Bin, a trader by profession, is looking to buy a 450-square-metre
house in the area for his family and ready to pay as much as C$4.3 million
(S$5.5 million).
Mr Su splits his time between Vancouver and Shanghai. While he's in
China, he wants his family to be comfortable as they adapt to their new
country.
'For my child, growing up and going to school here will allow him to
integrate fully into the world, into an international lifestyle,' he said.
'That's just not possible in China.'
While prices in Vancouver have risen 54 per cent in the past three
years, they jumped 13 per cent last year alone.
Vancouver real estate agent Clarence Debelle sees the Chinese influx in
his business. 'We do not have that many homes available for sale in Vancouver,
and the Chinese buyers are buying an awful lot of them. So I feel the
prices will continue to rise,' he said.
In some large cities
including Beijing people are generally restricted to no more than two
properties.
Seventy square metres for half a million dollars in Vancouver might look
expensive, even with with a view of the sea. But to be able to own
property outright is not possible in China, he said, where houses are
leased for a maximum of 70 years.
As for Mr Su and his wife, who have not
yet decided which house to buy, one thing is sure: 'If my wife and I find
a house we like, we will buy it, and if the house holds its value, even
better.' -- 2011 July 21 AFP
Perception in Hong Kong
that 80% of the Vancouver Real Estate Market is PRC-driven
Vancouver | Lifestyle
How much are Downtown Vancouver Freehold
Flats?
Ours
is a blog for our serious investors. If you copy our intel, please
credit us accordingly with a link to the appropriate marker.
In
our opinion, the Patina off Burrard Street represents best value for
quality construction. Because of the nature of the
Construction Industry and legislation in British Columbia relating to
strata-titled buildings, the reputation of the developer carries
with the unit into re-sales so the long-standing experience of a premium
developer in the local market is issue that merits
attention. Two spectacular penthouses in the heart of
Downtown Vancouver at the new price and the two Sub-Penthouse which come
furnished, are 'the find' in Vancouver. If you are planning
a site visit, mention the "TaiTai"
promo code to be elgible for special discount.
Photo by Nadine Somjen
Only
in Vancouver do they have walk-ways designated for doggies! So too
is everyone an expert on real estate - because property owners have made
at least a cool half-million or more just for owning property.
At this moment the locals are tripping over themselves making claims to calm
the market from over heating. Right now the rage is to say
it is NOT the PRC who are buying up Vancouver real estate - its local
immigrants. Do you believe these non-Chinese so-called
experts?
In this Globe
& Mail article Colliers expert is quoted as
saying "I do think this sale is the first of several
higher-profile properties we're going to see this year". Maybe he didn't keep track of the family
row over a few billions? Who's in the loop and made
the commission as dept head?! Hmmm... Anyway, the Sutton Place
Vancouver traded for -- $164-million.
Mainland Chinese interest in Metro Vancouver property is so strong that it's
fuelling a market for real estate tourism, with groups of wealthy
travellers scheduling visits to the city for the sole purpose of house
hunting.China-based Internet sales company SouFun is organizing two tours.
-- 2011 VANCOUVER SUN
"And why do these ultra-rich Chinese want to immigrate to Canada? Soufun
lists 5 reasons (translation):
(1) Canada has been rated “the most livable place on earth” eight
years in a row. With income levels of many Chinese exploding, more
people are interested in getting vacation homes. Beautiful Canada has
become a hot spot for these “vacation property investors”.
(2) Canada has proved itself as a solid and safe place for investment
during the economic downturn. Unlike the neighbouring US housing markets
which plunged over 30% in many states, Canadian real estate market was
almost untouched. Canada enjoys a steady annual incoming immigrant
population, which in turn keeps the housing market stable at an average
pace of price hiking 5-8% a year.
(3) In recent years, “school zone property” (學區房)
is a red hot red hot term in China. Parents would buy highly priced
housing that is located within the area of “brand name schools”.
Canada has one of the world’s best education systems. Chinese parents
love this. Also, kids between 6 and 16 are offered free education in
Canada. Kids with permanent resident or immigrant status do not need to
pay tuition. The RESP is attractive too. The government is subsidizing
40% of university education, making tuition fees relatively much
“cheaper” in Canada.
(4) Canada has a very good social welfare net. Free medical
insurance, good welfare and pension are reasons why many Chinese see
Canada as the best place to retire. Someone say a child could get
childcare subsidies of as most as C$560 a month, which is 4000 yuan…
if a child is born in Canada and receives subsidies till 18 years old,
he/she would have received a total of 860,000 yuan. And most
importantly, the costs of living in Canada is much lower than in China.
(5) The relatively lax immigration requirements are attractive to
potential Chinese immigrants. All residents are given a “Maple
Card”, which allows one to freely travel in and out Canada within the
life of the card. Residents pay less on education and can apply for
mortgages, buy cars and get other social benefits. PR card holders can
freely work in Canada and are more likely to successfully get multiple
entry visas to the US. Moreover, the Canadian passport is accepted as
visa-free by 136 countries and thus is named the “world class travel
pass”." -- 2011
June 22 CHINESE
IN VANCOUVER
Now
its hip to be friends with China. They seem to be the
new residents flooding the neighbourhood during their evening walks.
But we are not so sure we like the party image that this mayor
seems intent on leaving as his legacy. Being unprepared and
caught off-guard is NOT world-class.
A fresh wave of Chinese buyers, coupled
with Canada's already frothy home prices, has vaulted Vancouver into the
ranks of the world's most unaffordable real-estate markets.
The market in Vancouver for Chinese buyers is
extremely hot as pointed out in a January article in the South
China Morning Post.
It's a top destination for wealthy mainlanders
looking to emigrate from China and, when they land, many immediately look
to purchase a principle residence."
"Wealthy Chinese tend to be more
comfortable with real estate as an investment. "Because of the
language barrier, many of clients are less comfortable with putting their
investment dollars into financial products or services they do not
understand, or know what the risks are. With real estate, they get to see
something tangible."
"They are willing to put a greater
weighting of their portfolio into real estate. In the wealthier areas,
Chinese buyers are consistently out-competing locals for properties. Our
research indicates that on the wealthier West Side of Vancouver, 78 per
cent of homes of more than C$2 million were sold to Chinese buyers in
2010." "Canada is in the strongest
fiscal position of any country in the G8 and has an over-abundance of
natural resources to feed its economy in the 21st century," he says.
"Vancouver may be the best-positioned city in the world."
- 2011
Vancouver luxury home market gets
'insanely hot'
Greater Vancouver has two faces: it is
one of the world's most liveable cities, yet it is one of the least
affordable.
Its appeal to both Canadians and
foreign immigrants continues to push real estate prices up,
uncontrollably. Coastal properties usually fetch princely prices and
increasingly 'Asian' Vancouver is no exception. All Vancouver luxury homes
fetch C$1 million (S$1.29 million) or more today.
Home sales here
have further strengthened, with buyers and sellers entering the hot market
at a record pace. Among the most notable house buyers are wealthy mainland
China immigrants, whose influx into Pacific north-west Canada has been
singled out for the spiralling prices of late.
There is
ambivalence when it comes to educated Chinese with deep pockets - they are
loved by realtors and local home sellers for the high prices they
unhesitatingly pay, but they are loathed by other homebuyers who can't
afford the prices.
Dan Scarrow,
Macdonald Realty's VP of corporate strategy, said the market for luxury
homes is now 'insanely hot' with mainland Chinese buyers becoming the
primary purchasers, especially in Richmond, near the international
airport.
'Activity in the
housing market strengthened last month. Things are moving very fast . . .
over the last 12 months, there has been an appreciation of 5.4 per cent
(in property values). Looking at the price index last year, it would have
been C$30,000 higher,' Rosario Setticasi, president of the Real Estate
Board of Greater Vancouver, told Bernama.
In March, there
were 4,000 home sales - the fourth highest in the history of Greater
Vancouver, which includes adjoining cities of growing Coquitlam, Richmond
and Maple Ridge, nearer to the US border.
'When you look at
listings, 6,800 homes were listed this March, which was close to the
record set in March last year and this brought the inventory up to 13,000
listings in Greater Vancouver. This was about 10 per cent higher last
month, and 3 per cent below March 2010,' Mr Setticasi said.
This region has a
free open marketplace with prices largely dictated by supply and demand,
'which has served us well and over the last 40 years, it has always been
on the upside, with fluctuations in the early 1980s when prices dropped',
he said.
The City of
Vancouver's tagline found on all vehicle number plates is'Beautiful
British Columbia' and reinforces that impression on visitors while real
estate agents trumpet that this is the best place to live, with the city
repeatedly being voted a 'global best'.
Unpolluted blue
skies, scenic environment, friendly Vancouverites, excellent healthcare,
good education facilities and proximity to Asia offer attractions to Metro
Vancouver's estimated 400,000 Chinese residents, who make up one-fifth of
the city's population, in addition to other ethnic groups like Indians and
Iranians.
But not everyone
agrees with the rating. Vancouver, host of the 2010 Winter Olympics, has a
fair share of crimes. There have been many reports of drug busts, gang
wars, thefts and robberies. Some people even liken the increase in real
estate activity to drug money. There is also relatively high unemployment
here.
It is now a
seller's market with sellers taking an average of only 36 days to sell a
listed home in March, which is six days less than in February.
'With springtime, things move really fast. There are good signs. When
demand gets stronger, as it is now, we will experience appreciation in
property prices,' Mr Setticasi said.
There is hardly any restriction placed on foreign property buyers here
unlike in Hong Kong, Brunei or Australia, which place restrictions on
foreign ownership or requiring them to sell off their properties if they
do not live there and barring them from buying existing properties.
Within Canada, only Prince Edward Island, Manitoba, Saskatchewan and
Alberta have laws that restrict non-residents from buying land.
Vancouver had the world's least affordable housing market last year,
according to a report that also put the blame on urban land-use policies
designed to prevent urban sprawl.
A big number of homeowners are motivated to let go of their properties
to relish the high prices. This gives them an opportunity to move to less
expensive areas or they could be wanting to minimise loan amounts or use
the money to buy other things and retire, according to Mr Setticasi.
Peter Ladner, a former Vancouver City councillor who described the real
estate market as having gone out of control, raised the idea of foreign
ownership restrictions. He had called for a debate on the issue and said
that prices were forcing people raised here to relocate and preventing
others from moving to the area.
The buying frenzy makes Vancouver the third most unaffordable in the
world after Hong Kong and Sydney, based on household income and average
house price, according to Mr Ladner. --
2011 April 30 SINGAPORE
BUSINESS TIMES
Limited
by water and the U.S. border to the south
The North Shore mountains and Fraser Valley
to the east
Photo by Evan
Leeson
No wonder really why Asians
like Vancouver as a place to invest.
Admire that he could complete The
Sun Run in record time;
is brother of a long-time friend,
now deceased; and
read the Business in Vancouver which
he founded.
Although the article has attracted
attention even in Singapore (above item) and its easy to mis-interpret, in
principal he is right. The Hongkong-ers are similarly resentful of
the mainlanders who have overtaken the market -- buying up to 50% of
market transactions nowadays. So in that context read on...
At Large : Peter
Ladner
Offshore Ownership hits local Hot Button Photo by Evan
Leeson
Offshore ownership hits local real estate hot button
Wow. I’ve been astounded at the
reaction to my column about restricting overseas investment in local real
estate to try to make housing in Metro Vancouver more affordable to people
who want to live, work and pay income taxes here.
I’ve been flooded with requests for
media interviews, online comments and direct emails. Realtors and landed
immigrants are particularly outspoken, knowing the scene more intimately
than most. They’ve been telling me about the tour buses of buyers cruising
Kerrisdale, buyers purchasing sight unseen and the overseas owner with 300
local residential properties.
It’s becoming pretty clear that there is a deep undercurrent of resentment and
anger about offshore investors pushing up residential real estate prices.
People are fearful of speaking out, not wanting to be labelled socialist
or racist – or both.
Others wonder whether overseas investors are being scapegoated for soaring real estate prices when the real causes are lack of new supply
and easy low-cost borrowing. Still others fear the decline of
foreign-investor-funded high-end rental condominium construction or the
ruin of recent first-time “Generation Debt” buyers if prices drop. (At
least wait until the remaining units in the Olympic Village are sold!)
One real estate expert shrugged off the issue by saying we went through the
same debate in the 1980s and “most people think this city is better off
now than it was in 1987.”
Actually, not. How does being the third-most unaffordable city in the world, with
average house prices more than nine times average income, make “most
people” better off? It makes businesses less well off, since it’s
harder for them to attract employees from out of town. Stupidly high
housing prices also discourage foreign investment in business and head
offices here. They even drive up public-sector costs: one senior
provincial government employee wrote to say he agreed to move to Burnaby
from Edmonton only after the government raised its salary offer.
PRC 'protection from pine cones' in Kerrisdale
--Golf netting protecting their backyard playground
Absentee foreign ownership makes neighbourhoods unattractive and unsafe, like the
block in Kerrisdale where one resident told me five homes were unoccupied.
It breaks up families, forcing younger members to live far away.
For the price of a home, on my income, you would need at least 10 adults
working full time to pay the mortgage. I’m moving to Alberta,” wrote
one online commentator.
It forces us to spend billions on transportation so the people who make this
city so livable and attractive can carry out their life sentence of
expensive commuting from far-flung suburbs. It reserves big chunks of our
city for people who only live here parttime, if at all, contributing
nothing to the community, often paying no income taxes. It widens the gap
between rich and poor, then drives billions of dollars in public spending
on subsidized housing and rent supplements to shore up the lives of the
most desperate.
Restrictions on foreign ownership of real estate are widespread around the world.
Some jurisdictions simply discourage foreign ownership: in Florida,
non-residents (Canadians!) pay higher property taxes. We could have a
higher property transaction tax for non-residents or higher capital gains
taxes for foreign investors or time restrictions on re-sales to prevent
flipping.
If it weren’t for foreign ownership restrictions in Bali, the locals would
be completely priced out of their own communities. Yes, friends, when
facing new waves of overseas investment wealth paying cash for homes here,
we are as Balinese.
Or
Australians. In Sydney, foreign ownership restrictions were imposed, then
relaxed, then re-imposed last year after that city shot up to the No. 2
most unaffordable city in the world. There, non-residents can invest only
in new projects, and then only up to 50% of the units. If they buy bare
land, they have to start building within 12 months. Temporary residents
have to sell their properties when they leave the country.
Solutions aren’t easy, but we don’t even have the data for a rational
discussion. Judging from the response I’m getting, it’s long overdue.
Peter
Ladner is former City Councillor and founder of BUSINESS IN
VANCOUVER.
This
article from Business in Vancouver April 19-25, 2011; issue 1121
Why Vancouver?
Asia's Recreation Home;
Canadian Institutions Dominate
Ownership of Prime Assets in most asset classes so security of tenure;
Entrepot to Asia with several decades
experienced professionals specialized in international work;
World-class human capital and
knowledge professional honed in technology;
Canada's political stability and land
of Resources of just 40 million people in the world's second largest
land mass;
Increased demand due to aging
demographics choosing lifestyle options and relative value on world-class
level is inexpensive.
Luxury Retailers choosing Vancouver to
make their debut
Last month, a glittering gaggle of VICs
(very important customers) converged on the historic Fairmont Hotel
Vancouver to take in the renovation of the Louis Vuitton boutique there.
After the unveiling and a cocktail reception, guests were ferried via
chauffered SUVs and railcar -- yes, railcar-- to a speakeasy-style
party where the champagne continued to flow. ... Retail-wise, "Vancouver is on a world scale"
-- 2011 January 15
GLOBE
& MAIL
Bentall, on behalf of
Westpen Funds, recently acquired 1090 West Pender (Concord Pacific's
original office!) from WPPG for $19.5 million, which in turn acquired a
half interest in the Bentall-owned 1050 West Pender. The
latter is a 21-storey office tower with 220,129 square feet of leasable
area; 1090 gives Bentall a 0.2 acre site with 77,400 square feet on
12 storeys.
When combined with the
parkade at 1070 West Pender, 1090 West Pender positions Bentall to develop
an office tower on a prominent 0.73 acre acre corner site.
Proximity to the
convention centre and growing pedestrian traffic make retail at grade
possible, while offices above would be good fit with the office towers on
the block such as 1055 Dunsmuir, a 35-storey office tower with more than
540,000 square feet. City zoning permits just short of 350,000
square feet if 1070 and 1090 West Pender are developed
together.
-- 2011 March 8
Good investments stand the test of time. Bravo to the Leong family
for their far-sighted and strategic investment approach in Vancouver with their purchase decades ago of the Royal
Bank building strategically located at Granville and Hastings decades ago.
Significant and strategic and one of the city's landmarks.
Sydney Leong 'got it' long before the first wave in commercial real
estate investment in the 1980's. We are proud of our long-time
friendship and association with the Leong family who also have ownership interest in
Lansdowne Shopping Centre in Richmond, BC. They helped me with
my dealmaking in Hong Kong -- the
deal that put me on the mark in that market ;-) I am
most grateful to the Leong's for expanding my horizons globally.
Metro Vancouver housing
demand to 2021
Source: Metro
Vancouver.
By 2040, Metro Vancouver's population
will grow by 1.2 million newcomers and employment will increase by 600,000
new jobs. In the next decade alone, to accommodate new residents, the
demand for ownership homes will increase by 120,700 units and the demand
for rental units will increase 64,900 units.
-- GREATER
VANCOUVER REAL ESTATE BOARD
Facilitated and effected largely by the
significant investments ( over a few hundred million ) by two good
friends - of Coal Harbour and the north shore of False Creek:
My good friend Donald Leung had the
foresight to act as lender to Marathon Realty, the owners of the rail lands along
Coal Harbour, for SHKP
of Hong Kong and continues to operate in Canada as ASPAC Developments
having developed in Coal Harbour as well as at UBC.
The richest Chinese businessman in the
world, Li
Ka-Shing lent muscle-power to the team including son Victor Li
to developing 84 hectares of Downtown Vancouver formerly the Expo 86
site, and the legacy of Concord Pacific. That's how
they found me - my then partner and I had 70% market share on the
sales of enbloc apartment buildings in the West End of Downtown
Vancouver. Then I relocated to Hong Kong for the group and
became a global real estate investor managing the same
amount as some of the nation's pension fund
managers. And the rest, as they say in the movies, is
history. Much thanks to the teachers and my colleagues and
friends around the world who support my out-of-box
thinking. Several of Asia's richest have found
my investments highly profitable; and consistently over
decades. I have new partners now including the team who are White
Spot in Asia. We were introduced to each other thru Hutchison
Whampoa. Small world!
Meanwhile though despite the success in
the luxury retail sector we noticed that two of our favourite destination
retailers at the Granville Island Public Market - Le Kiu for chicken, and the specialty turkey place is no longer
there, since the new year. The trustees of Granville
Island do an excellent job though of promoting local artisans.
CMHC are their landlords, I think.
We hope they are not being
too harsh on good retailers who are draws to the smaller tenants who have
taken their spots.
All tenants are not equal + government
administrators, please note these are unprecedented economic
times. Things are not looking that good so be a bit mindful in
setting rates and forecasting rents + sales. Bankers know this
and they are fundamental to the system. We heard
recently of story of a local developer was told by his banker that the
next tranche of funding would not be forthcoming until they sold a
handful more units. Tweets and facebook can't
measure this, although their valuations seem to improve with more gossip.
Similarly a wander through City
Square unearthed the fact that there are many vacancies.
That landlord should be concerned. I would be, if I
owned it. What a pity. Such a great location and
incredible demographics. But there is more competition like
Whole Foods now, down the street. That real estate has failed
to establish itself with a distinct personality / merchant mix.
Suntec of Singapore bags Vancouver
Convention Centre deal
Just two months after it was launched,
Suntec International has landed its first client, the Vancouver Convention
Centre (VCC).
An international offshoot of Suntec
Singapore, Suntec International caters to global players in the meetings,
incentives, conventions & exhibitions (MICE) industry offering
services such as sales and marketing representation, franchising as well
as consultancy services.
'With Asia as a rising global economic
powerhouse and strong progressive trends in the region, the infrastructure
in the region is constantly advancing and results in this geographic area
offer endless opportunities,' said Pieter Idenburg, CEO of Suntec
International, which is a member of the ARA Group.
Aspac's River Green project by the
Richmond Oval is a huge success with prices ranging in the $750 to $1,000 per square foot
range. A number of units have sold over $2 - $3,000,000
and SHKP,
the parent company of Aspac, is catering to the mainland
Chinese new wealth - and providing even shuttle buses to Vancouver
International Airport and back. Its the new 'must-have' recreation
home for the nouveau riche of China!
Above is photo of the model for
the proposed 2,600 unit community.
And the City of Vancouver's mayor likes
to promote himself as fiscally responsible? Its a tad insulting
to think the taxpayers and voters should believe him.
Despite the much-hyped City-owned
Millenium Water project promoted as 'last waterfront' on the
north shore of False Creek there has been no significant sales
volume. By developers standards, this
project is no runaway success. This
was Athlete's Village during the 2010 Winter Olympics. Recently
15 tenants selected by the City moved into the empty ghost town in the heart
of the City.
Very interesting to compare the sales on
these two prime waterfront projects in Greater Vancouver. The
quality of constructions of these projects do not compare and market sales
is proof of this. In addition, a professional approach (Aspac)
vs a Citizen's Approach (City of Vancouver) to managing funds - the difference and
results speak for themselves. This trend is
worrisome for property owners and investors.
Real estate investing and development is
not as easy as it looks as the City of Vancouver is finding out.
Some of us with decades of experience know how to make it look
easy! Hopefully though Millenium will be profitable because it
is done with the taxpayer's funds... just look at property tax increases
this year - which are substantial. In the case of commercial
properties, those increases will be passed along to tenants ['net, net,
net' leases] so landowners pray for their tenant's success and ongoing
ability-to-pay. Policy makers and politicians, please
note. Vancouver fortunately has not experienced much
fallout from the global recession but this may not always be the case as it
will take some time for decisions previously made, to work through the
system.
The Third Wave Hits Vancouver Buyers
from the Chinese mainland are pouring their wealth into Vancouver real estate, boosting the market
The economic impact of wealthy buyers from Mainland China has gone all but unnoticed by the average Vancouverite
- but it's no secret to the
city's real estate industry.
And unlike the buyers from Hong Kong in the 80s and Taiwan in the 90s, who had a huge impact on property values, this third wave from Mainland
China is projected to be far bigger. This wave of buyer is newly rich and seeking luxury properties on the city's West Side, in downtown condo
properties, and to a lesser extent, in Richmond and Burnaby. Buyers from Mainland China are even buying up recreational properties in places like
Kelowna.
"They're injecting fuel into it, causing [luxury prices] to rise a little faster than they usually would," says
a West Side realtor. "There are definitely some fast-paced sales going on. A lot of the really highly sought after properties have been snapped up pretty fast."
"In terms of purchasing power, they go for the big residential single detached homes
- that's all we're hearing, especially in regard to
high end product," says Mr. Wong, who has had to learn Mandarin as a result.
"It's very much a reflection of the new wealth.
China is no longer a sleeping giant
-- it's a giant.
"And it's not just a Vancouver phenomenon, it's all along the west coast."
- 2010 June 17 GLOBE
& MAIL
The surprising trades in 2009 of
two institutional-grade Downtown office buildings in Vancouver reflect
global investment strategies and opportunities.
Bentall V
on Burrard Street at
centre ice in Downtown Vancouver sold for $84 million or $510 per sq ft by the Caisse to a German
group. It was an unsolicited offer.
Who ever thought the Duke of
Westminster, London's largest private landowner would feel squeezed,
like the rest of us?! The Grosvenor building at 1038-1070 West
Georgia traded for $84 million reflecting $412 per sq ft. to local
zillionaire, Joe Segal.
Both these Class A buildings were
purchased at below replacement cost. Hmmm...
Overall values especially in Westside
residential remain strong as a new
strain of rich Chinese, People's Republic of China based new
wealth is repeating a pattern exhibited by Hong Konger-er's in the
late 90's and Taiwanese and Koreans. Simply put, the education
in Canada is excellent and the cost of living easily affordable.
Most view their time in Canada as opportunity to 'polish'
themselves. Etiquette schools and golf lessons are in
demand. These are high-end Chinese with lots of ca$h
although not necessarily class to match Hong Kong-ers like to complain.
Private bankers are having a field day.
Greater Vancouver is bounded by the
mountains to the north, the border to the south. The Pacific is
just west and the Fraser Valley has already exhibited growth in more heady
times. Still though, demand outstrips supply and that's what
keeps prices strong - demand exceeds supply.
The Vancouver real estate investment market remains
generally recession-proof on the high end because of continuing growing demand and
limited supply. There are also barriers to entry in this
sophisticated real estate market where dominant players remain
strong.
The city continues to have international and multicultural audience with
continued in-migration. Aging demographics and trend
towards Lifestyle trends suggest this trend shall continue in the long term
and if anything, this financial tsunami reinforces the same.
- ANDREA
ENG, Founder of REAL
ESTATE FUND MANAGER .com
Among the key sellers were the Ontario Pension Board, which
sold nearly $350 million worth of prime commercial real estate by selling
Lougheed Town Centre, Brentwood Mall and Hillside Centre in Victoria.
Investors
have not lost sight of the fact that major U.S. retailers like Target are
keen to expand in Canada, with its deal for Zellers’ locations across
the country.
“They look at how Canadians have fared financially with more disposable income
readily available. That translates into shopping, which is a comforting
thing to investors of a shopping centre.”
Most property owners would rather hold onto their property assets than
liquidate into cash. Demand, however, will remain strong in the B.C.
market, which has a lower availability of commercial real estate per
capita than markets like Toronto. That should bode well for vendors when
they decide to put their properties on the market. “While we are a very
small real estate market, the good news is, we’re a more liquid market
than most commercial markets in North America.”
-- 2011 March 29- April 4 BUSINESS IN VANCOUVER
Lougheed Town Centre is another regional
centre that changed hands in 2010 for $132,847,705. The 600,000 square
feet Lougheed Town Centre is the second largest mall in Burnaby with
140 stores and services.
The multi-national tenants include
Wal-Mart (136,300 sf), Hudson’s Bay Company (125,400 sf), London Drugs
(35,000 sf), and Safeway (30,000 sf).
The property was assessed for tax
purposes at $144,149,000.
>
Semiahmoo mall sold for $84.5 million
Toronto-based mall developer First Capital
Realty Inc. (TSX:FCR) announced Wednesday that it has purchased Semiahmoo
Shopping Centre in Surrey for $84.5 million from Bosa Development Corp.
It is the largest property acquisition
completed by the company in B.C. and brings its portfolio to 22 properties
comprising two million square feet totalling $528 million in gross book
value.
Its second largest asset in B.C., by
square footage, is the 266,000 square-foot West Oaks Mall in Abbotsford.
The Semiahmoo mall is located on 19.6
acres on the border between White Rock and Surrey. Current occupancy at
Semiahmoo, including committed leases, is 98%. First Capital said in a
release that the property has significant redevelopment and intensification
opportunities.
- 2010 July 1 BUSINESS IN VANCOUVER
>> VANCOUVER
SUN
16 shopping malls traded hands in 2010 with the bulk of retail centre sales
occurring in Metro Vancouver.
Among the key sellers were the Ontario Pension Board, which sold nearly $350
million worth of prime commercial real estate by selling Lougheed Town
Centre, Brentwood Mall and Hillside Centre in Victoria.
Some
of the key purchasers included Artis Real Estate Income Trust (TSX.AX.UN),
which acquired nearly $100 million in retail assets including Poco Place in
Port Coquitlam, Tamarack Centre in Cranbrook and Westbank Hub Centre in West
Kelowna.
One of the strengths of the retail property market has been B.C.’s relatively
strong economic performance, especially relative to the U.S. --
Business
in Vancouver March 29-April 4, 2011
The late Morris Wosk who owned some of the city's
best apartment buildings allowed me to sit on the sterling silver throne in
his antiques collection when I sold the city block along the golden mile of
Downtown Vancouver waterfront - 1395 Beach Avenue and Tudor Manor.
Multifamily
property investments are amongst the most sought after because this city has
a limited rental stock and historically a vacancy rate of just 1%. Also there is strong concentration of ownership in this sector so
opportunities for trophy product far and few between and cap rates reflect
this as demand exceeds supply because of strong fundamentals in this livable
city.
It's essential to separate real estate
investing (i.e. Private Equity) from retail purchase of individual residential
units. The drivers for residential property are very
much individually driven and there's more sentiment and emotion, With
commercial investment side professionals do not do things on a whim.
- 2010 May BUSINESS IN VANCOUVER
Andrea Eng initiated the sale of 1450
West Georgia Street in transaction from long time land owners Park Georgia Group.
In 2010 the 162-unit Georgia Towers which was sold in 2008 to low-key
Iranizian zillionaires, re-sold to a Canadian REIT for $37.5
million. --
2010 May 2010
--2011 June GLOBE & MAIL
