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


Moderator: admin

 
rMBA13
Real Estate Talker
Topic Author
Posts: 219
Joined: Fri Jun 27, 2014 3:46 pm
Contact:

Ninety-five per cent of the buyers are now from China

Wed Apr 29, 2015 11:32 pm

A wave of land speculators led by mainland Chinese buyers is snapping up old Burnaby rental apartment buildings, driving per door prices above $350,000 and razing the units for high-rise condominium construction.


The land rush is centred around four transit-linked Burnaby town centres where at least three dozen apartment buildings have been bought for demolition in the past year. Unlike Vancouver and most suburban municipalities, Burnaby has no restrictions on tearing down low-cost rental apartments and building condominiums in their place. Last year, the suburban city issued 419 demolition permits and are averaging 34 per month so far in 2015.

“Ninety-five per cent of the buyers are now from China,” said Ben Williams, a broker with Burnaby-based London Pacific Property Agents Inc., which specializes in assembling and selling multi-family sites. Williams, working with Bill Goold, principal of Re/Max Bill Goold Realty, have sold the majority of Burnaby’s apartment buildings in the past few years.

The apartments are mostly in two and three storey wood-frame buildings that are 40 or 50 years old, with rents below the Metro Vancouver average.


According to Williams, all of the apartments deemed for development are being replaced by condominiums that will be sold to investors. “Most of these will be put back into the rental market, but they won’t rent for $850,” Williams said. Generally, tenants are given one-year notice and are offered an opportunity to buy or rent in the new condo tower, he said.

According to Canada Mortgage and Housing Corp., the average investor condominium in Metro Vancouver rents for $1,400 per month, and the vacancy rate for rented condominiums is 0.7%, or about half that of the conventional apartment market.

Old Burnaby apartment buildings outside of the top development zones sell for around $220,000 per suite.

Apartment blocks must fit a certain criteria to attract big-money real estate developers. First, it must be in one of the four areas designated as town centres under Burnaby’s official community plan. These are Brentwood, Metrotown, Edmonds and Lougheed, all with SkyTrain stations. The Patterson SkyTrain station area is not officially a town centre, but speculators are also bidding up multi-family sites in that area in anticipation of higher-density zoning.

The apartment site must also cover a minimum of 37,000 square feet of land to qualify for the maximum floor-space-ratio (FSR) zoning of five, or about 4.5 times the existing site coverage. Such a site could be potentially developed into 185,000 square feet of concrete strata space that could sell for $600 per square foot.

If a site is too small to qualify for maximum density, Williams and Goold will negotiate with adjacent building owners to assembly land into larger parcels.

Investors are attracted by the math. Even with per-buildable-foot prices of $120 to $140, money can be made if the condo and rental markets remain heated.

“I have 1,000 buyers looking for apartment sites,” said Goold, a specialist in multi-family sales. He said it is not uncommon to have 15 buyers lined up for an open house. “We are seeing multiple bids.”

Goold confirmed that nearly all his recent Burnaby land development sales are to investors from mainland China, which he visited last month on a successful sales trip. “One buyer from China flew over here and paid $40 million cash for a Metrotown site,” Goold said.
http://www.biv.com/article/2015/4/inves ... cks-land-/
 
Geyser
Real Estate Talker
Posts: 3569
Joined: Tue Jun 05, 2012 5:26 pm
Location: In a van down by the river
Contact:

Re: Ninety-five per cent of the buyers are now from China

Thu Apr 30, 2015 11:04 am

Wow! Fascinating report, thanks.

Obviously, when it comes to apartments, it's all about the land. So long as that land is at least 37,000 sq. ft. and is located close to a Skytrain station the land value underneath the apartments can skyrocket. Once again "location, location, location" rules the day.

As previously noted in earlier posts, I've seen this before when owners of condos built on underutilized, excellently located and highly desirable large lots have been offered double their assessed value to sell. Location, location, location!
In fond memory of Taipan, a model of modesty, decency, dignity and tolerance. Long may we all prosper from the tremendous legacy of worldly wisdom and specialized real estate knowledge which he left in the "Arguments" thread.
 
red_lantern
Real Estate Talker
Posts: 705
Joined: Wed Sep 26, 2007 11:45 pm
Contact:

Re: Ninety-five per cent of the buyers are now from China

Thu Apr 30, 2015 11:43 pm

The sad thing about this is that Vancouver/Burnaby is being sold out to China.
Harper doesn't give a F&*X about us Canadians (similar to what Kanye said about Bush back in the early oo's).

Stop foreign investors and speculators, stop the buying frenzy from china!
 
User avatar
WhipMaster
Real Estate Talker
Posts: 5129
Joined: Thu Mar 07, 2013 2:42 pm
Contact:

Re: Ninety-five per cent of the buyers are now from China

Sat May 02, 2015 8:29 am

This is why the "fundamentals" argument hasn't really been applicable for the last dozen years.
We dun' tried to tell you fawkin' idjiots! :D
Hoo~Cudda~Not~Nod~ed????? :-)
 
tdma800
Real Estate Talker
Posts: 2977
Joined: Wed Jan 23, 2008 9:12 am
Contact:

Re: Ninety-five per cent of the buyers are now from China

Sat May 02, 2015 9:22 am

I don't complain about foreigners. The prices are fine the way things are going.
 
rMBA13
Real Estate Talker
Topic Author
Posts: 219
Joined: Fri Jun 27, 2014 3:46 pm
Contact:

Re: Ninety-five per cent of the buyers are now from China

Sat May 02, 2015 11:13 am

Remember peeps, China has 1.5billion people... and Vancouver is perceived as a safe place to park their cash. BC only has 4.6million people, and these Chinese only love Vancouver, Richmond, West Vancouver, Burnaby and Coquitlam. They're not really interested in living anywhere else.
 
Justice
Real Estate Talker
Posts: 28
Joined: Fri Mar 01, 2013 7:14 pm
Contact:

Re: Ninety-five per cent of the buyers are now from China

Sat May 02, 2015 11:32 am

Remember peeps, China has 1.5billion people... and Vancouver is perceived as a safe place to park their cash. BC only has 4.6million people, and these Chinese only love Vancouver, Richmond, West Vancouver, Burnaby and Coquitlam. They're not really interested in living anywhere else.
Probably why Victoria would become more and more popular with real Canadians. I'm surprised companies haven't figured out that they can attract people there with all the natural beauty of Vancouver but with reasonable housing costs.
 
Geyser
Real Estate Talker
Posts: 3569
Joined: Tue Jun 05, 2012 5:26 pm
Location: In a van down by the river
Contact:

Re: Ninety-five per cent of the buyers are now from China

Sat May 02, 2015 1:40 pm

Remember peeps, China has 1.5billion people... and Vancouver is perceived as a safe place to park their cash. BC only has 4.6million people, and these Chinese only love Vancouver, Richmond, West Vancouver, Burnaby and Coquitlam. They're not really interested in living anywhere else.
China doesn't have 1.5 billion rich people, and any overseas Chinese buyer in our market needs well over a million bucks to enter their preferred neighbourhoods. Probably well over $2 million.
China recorded 2,378,000 millionaires in 2013, according to Boston Consulting Group’s 2014 Global Wealth Report.
Also, Canada has dropped off their radar, we no longer get a mention amongst their favorite foreign property markets. They now have plenty of other very attractive places to choose from with better weather, political stability and much lower property prices.
Australia is top immigration destination for wealthy Chinese
July 11. 2014

BEIJING (CHINA DAILY/ASIA NEWS NETWORK) -

Australia topped the latest list of the most popular destinations for rich Chinese who want to get overseas citizenship or permanent residency through investment.

Second on the list is New Zealand, followed by Germany, Sweden and Singapore.

As Canada has tightened its investor immigration plan and economic prospects in Europe remain murky, Australia and New Zealand have won more Chinese hearts, said Yang Fang, a business director from Globevisa, an immigration agency in Beijing.

However, more and more Chinese are showing growing enthusiasm in buying properties in European countries like Portugal, Spain and Greece to get permanent residency.

"The housing prices in these countries almost dropped to the level of 10 to 20 years ago due to the European debt crisis. Besides, many European countries encourage overseas residents to buy properties in their countries to get permanent residency in order to boost their economies, which are attractive for rich Chinese," she explained.

Asian countries such as Malaysia and South Korea have become increasingly popular for wealthy Chinese, she said.
In fond memory of Taipan, a model of modesty, decency, dignity and tolerance. Long may we all prosper from the tremendous legacy of worldly wisdom and specialized real estate knowledge which he left in the "Arguments" thread.
 
tdma800
Real Estate Talker
Posts: 2977
Joined: Wed Jan 23, 2008 9:12 am
Contact:

Re: Ninety-five per cent of the buyers are now from China

Sat May 02, 2015 1:41 pm

The Chinese now go to Quebec first
 
User avatar
WhipMaster
Real Estate Talker
Posts: 5129
Joined: Thu Mar 07, 2013 2:42 pm
Contact:

Re: Ninety-five per cent of the buyers are now from China

Sat May 02, 2015 1:44 pm

Chinese are going to Vancouver Island.
Apparently they bought up all the marine mechanical shops in Port Alberni. :shock:
Hoo~Cudda~Not~Nod~ed????? :-)
 
red_lantern
Real Estate Talker
Posts: 705
Joined: Wed Sep 26, 2007 11:45 pm
Contact:

Re: Ninety-five per cent of the buyers are now from China

Sat May 02, 2015 10:51 pm

I was on the Canada Line the other day and overheard a conversation there were these foreign investors from China that purchased a few properties in Point Grey. They have a lot of Canada Geese in there backyard and one day they came here for a vacation and decided to kill a few of the Canada Geese and cook them up for dinner. One of the girls on the train said that her classmate's relative did the same thing (she's from China also). I think they assume that there are a lot of geese in the backyard and this means it's food for them to eat. eww

Makes me think that if they open up a chinese restaurant here they would save a lot of money by substituting the sweet and sour chicken with sweet and sour canada goose (or worse yet a rat). I saw a dead pigeon outside of a chinese restaurant the other day, probably just waiting for the chef to take it and chop it up for some meat congee!!....eww..
 
User avatar
WhipMaster
Real Estate Talker
Posts: 5129
Joined: Thu Mar 07, 2013 2:42 pm
Contact:

Re: Ninety-five per cent of the buyers are now from China

Sun May 03, 2015 7:58 am

Gawd red_landt'rd...you are stoopid.... :mrgreen:
Firstly, Canadian geese are perfectly good and healthy to eat, it's just illegal for some silly reason.
Canadian geese would be a far healthier choice than any "factory farm" meat product by far.

You should try Canadian geese, it's absolutely dee-lish-ious!
...and it will put hair on your chest (although I am sure you probably have enough already). :lol:
Image
Haw! Haw! Haw! :mrgreen:

Hoo~Cudda~Not~Nod~ed????? :-)
 
red_lantern
Real Estate Talker
Posts: 705
Joined: Wed Sep 26, 2007 11:45 pm
Contact:

Re: Ninety-five per cent of the buyers are now from China

Sun May 03, 2015 8:41 pm

Okay, in the evening there's a bunch of canada geese squawking over by douglas park. I'm going to get my axe and catch me one for dinner, gonna chop off it's neck with den axe and take er home and cook er on my bbq! I"m gonna invite ma and pa and we gonna have a good meal with some nice canada goose meat and potatoes. Nuttin like the good old ease of goose meat and potatoes. :twisted:
 
User avatar
WhipMaster
Real Estate Talker
Posts: 5129
Joined: Thu Mar 07, 2013 2:42 pm
Contact:

Re: Ninety-five per cent of the buyers are now from China

Mon May 04, 2015 6:09 am

Simmer down...you seem a little rattled with all them thar typos.
Sitting your ma and pa down to a nice meal would be a good start.

Then you gotta ask them what they did in your upbringing to make you behave in such a nasty way now that you are an adult. :D
Hoo~Cudda~Not~Nod~ed????? :-)
 
rMBA13
Real Estate Talker
Topic Author
Posts: 219
Joined: Fri Jun 27, 2014 3:46 pm
Contact:

Re: Ninety-five per cent of the buyers are now from China

Sat May 16, 2015 3:35 pm

Vancouver, Richmond and West Vancouver are sold out to Chinese investors/immigrants. Native Canadians only have Coquitlam, North Vancouver, Delta, Surrey, etc to choose.

Who is online

Users browsing this forum: No registered users and 25 guests