Chinese investment in overseas commercial real estate has surged, and more Chinese investors are focusing on the Canadian market, according to a report released by a Vancouver-based commercial real estate firm.
In 2014, the global outflow of Chinese capital into overseas property markets reached US $18.3 billion, a record amount. In 2010, the amount was US $2.3 billion, the report from Colliers International stated this month.
Asian investors have been entering into commercial deals across the country. Office buildings, resorts and hotels, and land that is available for development have been popular among this group of investors.
One example is a 232-acre plot located just east of Vancouver. Brilliant Circle Group, which is based in Shenzhen, purchased it in January and told the local media that they may develop the site into a large urban village. The same Chinese company bought a development in downtown Vancouver in 2014.
Chinese firms also bought a resort in the province of Quebec and a development site in Toronto.
Canada is being looked at favourably for a number of reasons, such as its stable economy and political environment. It also has the advantage of having a very well regulated, balanced banking system.
The Chinese investors are taking advantage of the current favourable market, with its high land values and shortage of commercial assets.
Sellers are enjoying the high demand and buyers are facing competition for properties, making it more challenging for investors to find and acquire desirable assets.