Is dirty money inflating Canada’s property prices?

by Jamie Henry on 31 Oct 2014
A recent opinion piece by a well-known Canadian journalist has pointed the finger firmly at embezzled Chinese funds as the cause of high Canadian property prices.

Michael McCarthy’s opinion piece in the Vancouver Sun pulls no punches whatsoever – accusing Vancouver’s officials of sitting on their hands while “hot” Chinese money pours into the city. McCarthy cites a Bank of China report claiming up to 18,000 officials have fled China with hundreds of billions of illicit dollars – an estimated $7 million per official – some of which he contends, is laundered through Canada’s property markets.

It could be easily argued that McCarthy’s claims are xenophobic, and it’s hard to tell exactly how much of the recent price boom has been driven by Chinese money – although a 2011 report by Landcor Data showed that 74 per cent of luxury purchases in Richmond and Vancouver’s  super-pricey west side were made by buyers with “Mainland Chinese names”.

Whatever the truth of the matter, there are agents willing to do their best to take advantage of any Chinese gold rush. Vancouver’s Macdonald Realty, meanwhile, has already take those first steps, preparing to establish an office in Shanghai.

“While there is very little data about foreign investors in Vancouver real estate, our own internal data is enough for us to commit to investing in a representative office in Shanghai,” Dan Scarrow, vice-president of corporate strategy at Macdonald Realty, told the Globe and Mail.

It may be time to brush up on your Mandarin language skills.
 

Post a Comment

Most Trending News

The best place to buy a rental property in Canada: 2021
News

You want the biggest bang for your buck so here are the best places in Canada to buy a rental property, and the best types of properties (including vacation homes!).

Read More
Strategies to Predictably, Reliably Grow Your Real Estate Business
News

This 7-day free masters summit will provide you with all the tips and tricks you need to get started in real estate investing, how to expand your real estate portfolio, and much more.

Read More
June virtual conference promises to turn agents into millionaires
News

“The easiest way to prove to people you can help them is to just start helping them, no strings attached,” said Craig Proctor, the master realtor who revolutionized the team concept.

Read More