FEBRUARY 2012 |www.opp.org.uk


BUSINESS


Immigration Act introduced a points system that encouraged educated migrants to come to Canada. Hong Kong Chinese comprised the fi rst major wave of foreign students to B.C. in the 1980s and 1990s, and contributed to a signifi cant change in the class structure of Vancouver. Their numbers were further boosted by an infl ux of professionals from Hong Kong who left in anticipation of the 1997 handover of the island back to the Chinese. This resulted in a boom in university-educated migrants whose children have since fi lled Vancouver’s colleges and universities. Virani also points out that Vancouver has milder winters than the rest of Canada, and that it offers Chinese investors the ability to protect their savings which can be hard under China’s strict capital controls. The city’s established Chinese community also makes the transition for new residents easier. In November 2010, Osaka Supermarket opened its second Vancouver-area store in West Vancouver’s Park Royal shopping centre offering items ranging from marinated duck wings to a full dim sum bar and Asian fruits such as mangosteens, rambutans and longans - all of which are normally hard to fi nd in North America. Despite global fi nancial market volatility and economic uncertainty, Vancouver’s property market has gone from strength to strength. Even news from The Economist that Canada is part of a group of countries – including Australia, Belgium, France, New Zealand, Britain, the Netherlands, and Sweden – whose property prices are overvalued by 25 per cent, does not deter buyers.


The Chinese government recently introduced legislation to curb home ownership by raising the minimum down payment for second-home purchases and introducing taxes on residential properties in a bid to control their own spiralling house prices and offset a housing bubble. The effect of this was for many Chinese investors to look at overseas markets, and Vancouver is one that stood out. While China has tight measures in place regarding the amount of money taken out of the country, there appear to be substantial loopholes in the system. Some economists say they


have detected signs of large outfl ows of capital in recent months, driven in part by a decline in the global economy and expectations of slower yuan appreciation. Overseas property buying is one way to move money out of the country and into hard assets. According to the Real Estate Board of Greater Vancouver, detached homes on Vancouver’s affl uent Westside have experienced an 81.5 per cent appreciation over the past fi ve years, reaching an average price of $2.019 million in November 2011 compared to


“Vancouver has become an education hub attracting students from the Asia Pacifi c region”


the national average of $396,100. The many media reports of


Vancouver’s spiralling house prices has ignited frustration among Vancouver ‘locals’ who feel they are being priced out of the market by Chinese buyers. Headlines proclaiming that Chinese demand is driving Vancouver’s house prices up, are failing to look at the bigger picture that includes Canada’s continuing low interest rates playing a signifi cant role. Karim Virani raises another salient


point: As Vancouver’s Westside prices skyrocket, other markets - especially West Vancouver’s - are garnering interest among Chinese buyers. The reason is as simple as Feng Shui. West Vancouver houses are generally built with their backs to the Coast Mountain Range, and facing south towards spectacular views of English Bay and Burrard Inlet. This situation conforms to the principles of feng shui: The proper placement of features within, and surrounding, a house to increase wealth and defl ect bad luck. One such example of this is 5051 Meadfeild Road in West Vancouver, which boasts one of the most spectacular water views that Vancouver has to offer. It is currently on the market at Cdn$5.388 million through Virani Real Estate Advisors. This fi ve- bedroom / seven-bathroom villa sits on a generous 28,000-square-foot lot which is accessed via entrance gates that lead to a partially-heated driveway. The 6,000-plus square-foot home was designed with sophistication and


CANADA OUTLOOK | 25


practicality in mind and features vaulted ceilings, a Redl kitchen with high-end appliances, a large wine cellar, an open entertainment space that leads to a massive patio overlooking the view, and an indoor pool and Jacuzzi. Other key features include radiant in-fl oor heating, a heat recovery ventilation system, a media rom, and an elevator. But there is another factor at play contributing to Vancouver’s real estate market’s price increase. The fact is that Vancouver’s geography - which is bordered by mountains and ocean - ensures that the city cannot become a sprawling metropolis like so many North American cities, simply because it has natural restrictions which limit the amount of land available for development. It’s basic economics: The laws of supply and demand. Bryan Yan, a Realtor with Regent Park Realty Inc., specialises in selling homes on Vancouver’s Westside. He admits that this prosperous area certainly has a high-status reputation which provides a certain cache for Chinese buyers. Yan is currently marketing some properties for sale in Point Grey – one of Vancouver Westside’s most wealthy neighbourhoods. One features three parcels of land which together represent the most expensive residential lots in the Greater Vancouver Regional District at Cdn$36.8 million. The reason for this price tag? Some of the most sought-after views of Vancouver’s three principle attractions: water,


mountains and city, and upon which three new multi-million-dollar homes could be built. Another property in the same upscale area is 3743 Blenheim Street which is priced at $1.98 million. It is a distinctive three-level home that impresses with its modern west coast contemporary architectural style. It enjoys panoramic 360-degree unobstructed views from all three fl oors with expansive windows that bring natural sunlight into this four-bedroom/ four-bathroom residence. The home features an elegant Bianco Carrara marble entryway and fi replace, a sauna and 400-square-foot rooftop deck. It is important to remember that the nexus between Canada and China is a two-way street. Being the second- largest country in the world, Canada relies on immigrants to populate its cities and bring much-needed skills to the workforce. Vancouver is consistently ranked as one of the most liveable cities in the world by the Mercer Quality of Living survey and the Economist Intelligence Unit, both of which base their rankings on factors such as the availability of goods and services, low personal risk, and an effective infrastructure. And fi nally, 2012 is also the Year of the Dragon in the Chinese calendar. While it remains to be seen whether Vancouver’s house prices continue to climb next year, it is worth remembering much will be played on this symbol of power and wealth - both in Vancouver and China.


Great views | and luxurious living appeal to Chinese investors in western Vancouver


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