There has been a major crackdown on foreign buyers in British Columbia resulting in the Chinese investors exploring other options in Canada, due to Toronto emerging as one of the most preferred destinations for commercial investment.
According to a report by Bloomberg, with a major withdrawal in the Chinese investment in foreign real estate across the globe in 2018, Vancouver saw a particularly sharp drop-off as a series of new taxes kicked in.
In the meantime, Toronto experienced a minor increase in investment from Asia as a whole, surpassing Vancouver for the top spot according to data from CBRE, which includes only known buyers.
Chinese investment in Vancouver “had always been predicated on land, placing bets on land, whether it’s old shopping centers or office buildings even — they see underlying development and land value,” Avison Young’s Bal Atwal told Bloomberg.
“They’re looking at Toronto now because they’re seeing a better arbitrage on that than they are here,” he added.
CBRE, which has a major involvement in attracting Chinese investment to Canada, is currently looking forward to shift more of its focus to Toronto. The city’s booming tech and financial services market is looked upon as another potential draw for investors.
According to CBRE executive vice president David Ho, “That spells money because young people have to consume, they’re growing families.”
“That’s a huge advantage against the Vancouver market, which is more of a retirement market,” he added.