Stable Canadian economy and good quality of life is luring 'planeloads' of overseas buyers eager to invest

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When real estate entrepreneur Cam Good hosted a group of predominantly mainland Chinese investors this Wednesday at a White Rock condo showing, he was tapping into a market that's surging across much of Metro Vancouver.
Good, president of The Key, a Vancouver-based sales and marketing firm that's focusing on a new wave of Chinese buyers, figures he's sold more than 500 homes to mainland Chinese investors and immigrants in January and February in Vancouver and Toronto.
He's also opened an office in Beijing's business district -The Key China -where Chinese buyers can purchase Canadian condos from a presentation centre and view videos that showcase various condo developments and the virtues of Canada.
"[Chinese investors] have really picked up a lot of steam in the last two or three months," Good said in an interview. "And I believe this is just the tip of the iceberg. There's an über-wealthy upper class forming and there's a strong middle class growing in China. This massive middle class is now getting to a point where they can afford international real estate. And Canada is viewed by the Chinese as a very stable place to put their money.
"There are literally planeloads of Chinese coming here to buy real estate."
Wednesday's attraction was Avra, a 17-storey condominium tower that's slated to be built over the next two years, and Good took along a busload of investors -some from China and some already living here -and their agents to view the plans.
But it's not just condos that are attracting Chinese buyers, with single-family homes and large lots topping the list.
Across the Lower Mainland, especially Richmond and Vancouver's west side, mainland Chinese buyers and immigrants are becoming a major part of the market, in some cases competing with each other through multiple offers.
But the phenomenon is starting to spread to other areas including Burnaby, West Vancouver, White Rock and beyond.
"We predict that this will be a dominant trend for a long time," Scott Brown, senior vicepresident, Western Canada for Colliers International residential marketing, said in an interview. "Some of the most expensive [Vancouver] real estate is only being marketed to Chinese buyers. And Vancouver and Toronto are very popular."
According to a report on new multi-family home sales in the Lower Mainland by Colliers, which recently opened a dedicated office in Shanghai to deal with the increasing demand, a total of 2,711 new multi-family units were sold in the region in the fourth quarter of 2010, making it the most active quarter of the past year.
"As in each quarter in 2010, the health of the market is expected to continue to be positively impacted by increasing Asian immigrant and investment demand," the report, prepared by Colliers and Urban Analytics, concluded.
Scott said the expected offshore demand will continue to be "the dominant story in 2011 that it was in every quarter of 2010 especially in Vancouver-west, Metrotown and Richmond."
The demand for Vancouver properties appears to be fuelled by many factors -including, ironically, a crackdown on property purchases in mainland China that may be moving much of that investment overseas, particularly to Canada.

Local real estate companies are tapping into the demand, which realtors say is also partly fuelled by an easing of travel restrictions by China with the granting of approved destination status to Canada.
As well, local Vancouver area Chinese-language newspapers are being used by realtors and agents to specifically target mainland Chinese buyers, citing Canada and Vancouver's stability and strong local real estate returns.
A recent report in the China Daily, a state-run publication based in Beijing, said Canada was "the most popular choice" for overseas investors while "growing restrictions on property purchases in major Chinese cities [are driving] the country's nouveau riche to look overseas for investment opportunities."
The newspaper noted that most overseas property purchases are motivated by a combination of factors including immigration, education and investment, with Canada, Australia and the U.K. topping the list of destinations.
The China Daily report also said buyers from the Chinese mainland represent between 40 and 50 per cent of the current market for pre-sale projects in Vancouver.
But China's effort to cool an overheating market is just one reason investment is pouring into Canada.
Brown believes there are many factors, especially Canada's image as a great country to live in and a safe place to invest money. "There's no one easy answer, but one of the main drivers is [they] believe that having their children educated in Canada [is good]. The other driver is that Vancouver is a beautiful, livable city and they want to buy their own piece of it."
One recent buyer is former Beijing resident Yang Yang, who moved to B.C. with her husband and young daughter last summer, purchased a detached house in Surrey, and accompanied Good to the White Rock condo showing.
"We prefer the peaceful life here," Yang said in an interview. "Beijing is very crowded and the air pollution is bad there."
Yang said that she and her husband, an IT engineer, are considering a condo at Avra as a place to retire when they no longer need their larger home.
Yang's realtor, Hong Lui, with Interlink Realty in Richmond, said she first noticed a surge in mainland Chinese interest last spring and it's grown increasingly stronger, with a mix of investors, including those who want to immigrate to Canada and others who are looking here after the Chinese government restricted their ability to own several homes.
Richmond MacDonald Realty realtor David Lindsay said: "January and February has been almost exclusively mainland Chinese buyers of big lots, with a house of little value on it. And we're getting multiple offers."
He said, for example, that a typical lot in the Seafair area, which sold for $800,000 in October, is now selling in the $1.2-million range. "I sold one last Sunday and we had four offers. The winning bid was $1.03 million. It was on the market for $968,000." Lindsay believes there's speculation is going on, because some buyers are getting an accepted contract with a clause that allows them to assign the contract to a third party before the sale is completed. "One buyer didn't even set foot on the property."
Real Estate Board of Greater Vancouver president Jake Moldowan said he believes lifestyle is the core reason for the interest. "Vancouver is an extremely desirable place to be."
He said that Richmond lots are now going for $1 million to $1.3 million. "And I know that there have been realtors from Hong Kong and mainland China, who fly over there, put packages together, and then bring people over."
Meanwhile, Bosa Properties announced this week that its 34-storey Sovereign tower in Burnaby's Metrotown sold out immediately, surpassing the single day sales record in the Burnaby market by selling $98-million worth of real estate.
bmorton@vancouversun.com

© Copyright (c) The Vancouver Sun

Read more: http://www.vancouversun.com/business/Chinese+investment+surge+hits+Metro+Vancouver+housing+market/4352746/story.html#ixzz1FAnYPzAl

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Challenges await Chinese immigrants, but so do opportunities.

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Wenying Wang hadn't seen her husband in 19 months.
The Chinese immigrant left her home outside Beijing last year and moved to Calgary to start a new life with her 14-year-old daughter.
On a cool winter day recently, she anxiously waited for her husband Yongbin Fan to join them.
Finally, the painful wait ended -- for a short time anyway -- as he landed in Calgary to reconnect with his family. Later this month, the mechanical engineer will return to China to support his wife and daughter, as well as care for his parents.
"When he isn't here with me, I was sad," Wenying says from her modest townhouse in southwest Calgary, husband at her side.
"We come to a strange country with no experience, almost know nothing about it. It is maybe a little difficult for us to adapt to this country," Yongbin adds.
The family's emotional reunion serves as a stark reminder of the struggles newcomers often experience when arriving in Alberta.
Yongbin wants the family to have a smooth transition into Canada, so he expects to work for another year in China until his wife can find a job in the health-care field.
For many newcomers, the joys of launching a new life are often tempered by social isolation, language barriers and a foreign culture. There are also severe financial pressures.
Wenying, 42, left behind everything she knows, including a job as a nurse. But she moved to a new city with growing ties to her homeland. The opportunities Alberta provides outweigh the struggles of starting over, she says.
"Our country (China) has some strong points," she explains. "But I like challenges. And I choose Canada."
Indeed, more Chinese are choosing Canada -- and Alberta -- as their home.
At least 1,000 new immigrants are expected to arrive in Calgary this year from China, making the country one of the largest sources of newcomers for the city.
In total, more than 75,000 Chinese people live in Calgary today, the city's largest visible minority group.
They are helping construct a social and cultural bridge to China that's changing the face of Calgary and Alberta.
People power may well trump energy, manufacturing and agriculture as the most important commodity in the Sino-Alberta trade relationship.
And as more Chinese nationals move to the province for work, an increasing number of Albertans are looking for jobs and a new life in the Asian country.
"China has a natural affinity for Canada," says Liu Yongfeng, China's consul general to Alberta.
"Nowadays, though our national conditions and social systems differ, there exists no conflict of fundamental interests between us -- and our common interests far outweigh our differences."
Canada holds a special place in the hearts of many Chinese.
On the streets of Beijing, residents almost instinctively cite the famous Norman Bethune, a gifted Canadian physician who took up the Chinese Communist cause in the late 1930s and treated soldiers on the front lines in years of war.
"Chinese people always remember -- forever," says Wenying. "They think Canadian people are friendly and like helping people."

Some 1.3 million Canadian residents are of Chinese origin and more than 50,000 Chinese students currently study at Canadian schools, says David Mulroney, Canada's ambassador in Beijing.
Chinese (primarily Mandarin) is also the most commonly spoken language in Canada, after English and French.
The two-way flow of people -- through business, immigration and tourism -- will "further strengthen our people-to-people ties, build understanding between our two countries and strengthen our commercial, cultural and political relations," the ambassador predicts.
People power flows in both directions.
Inside Mulroney's official residence, native Calgarian Rosalyn Ediger works as the embassy's chef. After graduating in 2005 from SAIT with a diploma in professional cooking, she travelled the globe and eventually stopped in China.
Intrigued by the distant country and culture, she jumped at the chance for a chef posting at the embassy. After two-and-a-half years, she doesn't plan on leaving anytime soon.
"I didn't know anything about China. It was just so mysterious," says the 25-yearold chef. "The more I know, the more I want to know."
Chinese residents take a little time to warm up to, she notes, but they are genuine people who have a deep respect for Canada.
Ediger, who grew up in Calgary's Huntington Hills community, believes hospitality is an integral part of diplomacy.
"If you give them a chance, they then give you a chance," she says.
"They're just as curious with me as I am with them. It's a good cross-cultural connection."
Alberta Immigration
Minister Thomas Lukaszuk wants to tap further into that connection.
China is a preferred partner for Alberta as it looks to attract newcomers, he says during a stop in Beijing.
Alberta is forecasting a severe shortage of workers over the next few decades and the province must look overseas to find people to sustain the economy.
China is particularly attractive because of its highly skilled workforce, Lukaszuk says.
He's hoping to streamline the process for approving immigration applications from China, which can take anywhere from nine months to four years.
"We know China has the capacity to partially satisfy our need," Lukaszuk says.
The number of permanent residents moving to Alberta from China has increased in the past couple of years, but still lags behind the boom times of 2006.
Last year, 2,034 immigrants arrived in Alberta from China -- up 13 per cent from 2007. The first half of this year saw 1,091 Chinese permanent residents land in the province.
The connections are profound on other fronts.
For example, the largest number of foreign students in the province originate from China.
In Calgary, Chinatown is marking its centenary in 2010 -- the Year of the Tiger -- with year-long festivities.
Jason Luan, a 47-year-old social planner with the City of Calgary, is actively involved in bridging the city's Chinese heritage with immigrants who will shape the future.

In 1988, he moved to the city from China to pursue a master of social work at the University of Calgary.
Today, he sees first-hand the challenges of integrating into a foreign society, serving as a member of the Immigrant Sector Council of Calgary.
Chinese newcomers often face social isolation and cultural shock, he says, and generally know less English than immigrants from many other countries.
"There is an immediate need. You need to find something that echoes your language, culture and sense of belonging," says Luan. "Never mind being successful, you're probably struggling for survival."
Luan is also a former president of the Chinese Professionals and Entrepreneurs Association of Calgary, an organization that helps immigrants succeed in the workforce.
Many group members hold dual post-secondary degrees in China and Canada, speak multiple languages and understand the sensibilities of both countries.
As China continues to flex its global economic muscles, more companies in Alberta are searching for employees familiar with the country's languages, customs and business climate.
"The bridge has become so strong," Luan says. "The relationship has developed."
In 1989, Glenn Wang arrived in Canada as a 26-yearold student with only $50 in his pocket and two suitcases in his hands.
Originally from Inner Mongolia and educated in Beijing, he earned a master's degree in mechanical engineering in Saskatchewan before moving to Calgary.
Today, he's a successful entrepreneur in the oil and gas sector and an immigration success story.
"I really see a lot of growth between the two countries with business and with people," Wang says. "I really find it's a two-way street."
The businessman believes Calgary is a "melting pot," but recognizes concerns exist among people about China's Communist regime, as well as its record on human rights and censorship.
While those worries can't be discounted, he cautions people about making misinformed judgments about the Asian powerhouse that don't tell the story of modern day China or its people.
"Like it or not, China is coming. So it's better for us to understand who's coming and why they're coming," he says.
Back at her home in southwest Calgary, Wenying Wang says she came to the city for many reasons, including opportunity, a clean environment and moderate weather.
Most importantly, she chose Calgary because she was looking for a place where her family would feel welcome.
As she waits for her family to reunite permanently, she has a message for other Albertans.
"Chinese people want to know the world -- and I think the world will want to know China," she says.
jfekete@calgaryherald.com
- - -
Jason Luan: Chinese immigrants face cultural shock.
Grant Black, Calgary Herald
-¦ At least 1,000 new Chinese immigrants expected to arrive in Calgary this year.
-¦ More than 75,000 people of Chinese ethnicity live in Calgary.
-¦ Approximately 137,000 Albertans are of Chinese descent.
-¦ Chinese is the largest visible minority group in the city and province.

-¦ 1.3 million Canadian residents are of Chinese origin.
-¦ More than 50,000
Chinese students currently study at Canadian schools.
-¦ Chinese (mostly Mandarin) is the most commonly spoken language in Canada after English and French.
-¦ China has been the largest source of Canadian immigrants over the past decade.
-¦ Processing times for Chinese newcomers can take anywhere from nine months to about four years.
Source: Alberta government
- - -
China Calling
Special Series
Thursday: Why China matters to Alberta, and where the future lies.
Friday: Alberta has much to offer travellers. The province's tourism sector expects to lure unprecedented numbers of Chinese here.
Saturday: Alberta is a big oil supplier; China is the world's largest energy consumer. More deals are inevitable.
today: People power is the most important part of Alberta's relationship with China, as new immigrants arrive in Calgary each year.

Read more: http://www.calgaryherald.com/Special+Report+People+power+fuels+Calgary+Chinese+connection/3965002/story.html#ixzz17w65k1Dn

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Chinese Paving the Road to Freedom With Cash

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By DIDI KIRSTEN TATLOW

Published: August 5, 2010

BEIJING — “They’re all millionaires. They’ve made it,” said Mikael Charette of the thousands of wealthy Chinese — his clients — who apply to emigrate to Canada every year on that country’s investment immigration program.
As part of his job, Mr. Charette, a lawyer from Montreal, scrutinizes clients’ financial records. Back in 2005, when he began working at Harvey Law Group in Beijing, he was struck by how often a family’s wealth began with the transfer of the assets of state-owned enterprises to private ownership in the 1990s. Over the course of about eight years, he estimates, those factories became fully profitable.
“Now, I look back over a decade of records, and I see that the factory is running itself. The money of the family is in the second generation, and the children are often already overseas-educated, and they, too, own real estate here,” he said.
But regardless of how wealthy they become, China’s new rich simply don’t feel secure.
“I’ve had rich businessmen say to me, ‘You can be a tiger, but there is always a hunter somewhere,”’ he said.
So they come to Mr. Charette, who specializes in investment immigration to his home province of Quebec. Or they go to other lawyers dealing in immigration to major destinations like the United States, Australia, Singapore, New Zealand and Hong Kong.
Unsolicited text messages from immigration firms have become a standard feature of life for Beijing’s upper-middle classes.
“Zero-risk emigration to America: Invest in an Idaho gold mine. For the first time in Beijing the governor himself will explain how, officially,” ran one, supplying a time and date for the meeting. “Emigrate to Australia for $200,000, 95 percent success rate, free education, generous welfare,” ran another.
In just over three decades, China has gone from being one of the poorest countries in the world to its third-biggest economy. Per capita gross domestic product in 1975 was $410. In 2009, it was $6,567, according to the World Bank.
The Hurun Rich List, based in Shanghai, says there are now 875,000 known dollar millionaires in China, an increase of 6.1 percent from a year ago.
Yet even as China grows richer, the number of its rich choosing to emigrate is rising. Many want to maintain two homes, merging their money-making abilities in China with what they perceive as the greater security and ease of international travel offered by a foreign passport or permanent residency.
Last year, for the first time, Chinese citizens became the largest group of immigrants to Australia, displacing the traditional sources of Britain and New Zealand. From July to December 2009, 13,371 Chinese became “permanent additions” (gaining or entitled to permanent residency) to Australia, overtaking Britain’s 13,037 and New Zealand’s 7,342.
While most immigrants are admitted on the basis of sought-after skills or to reunite families, investment immigration, in which applicants make a minimum financial investment or create jobs in their destination, is also booming. So much so that Canada, excluding Quebec, temporarily halted its program in June in order to double the amount that would-be immigrants must invest to qualify. Whereas before applicants required a net worth of 800,000 Canadian dollars, or about $790,000, and a 400,000-dollar investment, in the future they will need 1.6 million dollars and an investment of 800,000 dollars.
“All these changes are because we are overloaded,” Mr. Charette said. “This is a huge, sophisticated market.”
The result for Mr. Charette has been gratifying — a surge in applications to Quebec. He estimates that the window of opportunity will last until October, when Quebec, too, will adjust its policies. In February, 233 people from around Asia applied to the program, he said. In June, the month the national program closed, the number was 519. Chinese constitute up to 85 percent of applicants.
On June 26, the same day the rest of Canada temporarily closed doors, Mr. Charette addressed about 40 would-be investment immigrants in Beijing. The middle-aged men and women listened intently, most taking notes.
The looming higher rates “shouldn’t be a problem for my friends,” murmured Ms. Hou, who did not want to be identified by her full name and said she was with the People’s Liberation Army, representing rich property developers from the city of Xinxiang, in the central province of Henan.
Would she also emigrate, if she could? “Yes,” she said immediately.
Why? After all, China’s living standard is rising as the rest of the world watches the apparent success of the so-called “Beijing Model” — authoritarian politics plus fast economic growth.
Her answers mirrored those given by other would-be emigrants: Better education for the children; a pollution-free environment; better medical care; a safer food supply; bigger and cheaper housing. Added up, they are what psychologists and sociologists dub Q.O.L., or quality of life issues, factors not measured by G.D.P.
“Education is very important,” offered another woman at the seminar. “It’s different over there, and it produces different values.”
Did the current economic crisis in the West put her off?
“Not really,” she said. “They talk about it in the papers here, but I don’t know if they’re telling the truth. I trust my friends, and my friends say things aren’t that bad.”
Joy Xi emigrated to Canada nearly a decade ago. When I asked why people leave, despite rising prosperity in China, her answer was swift: “Sanlu,” the company notorious for producing melamine-laced milk powder that killed six babies and sickened hundreds of thousands more in 2008. Few believe the problem is over.
Also, said Ms. Xi, China is growing richer, but it’s also growing more unequal, and that makes the rich feel unsafe.
Summing up how many Chinese think, she cited a widespread saying: “Life in China is too risky. Consider carefully where you want to be reborn in your next life.”

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