Canada

US Real Estate Is Back At The Top of The List For Asia’s Buyers, Canada Fourth: Juwai

US real estate is once again the top spot for Asian buyers, according to China’s largest foreign property portal. Juwai crunched the numbers on the top destinations for Asia’s buyers, in its annual report. The US claimed the number one spot in 2020, after falling behind countries like Thailand in prior years. Canada managed to hold its fourth spot for a second year, with the bulk of buyers looking at just two cities.

Second-Homes, and FOMO Driving Overseas Buyers

There’s some common themes amongst top markets, according to Juwai. “Monetary stimulus around the world has pushed interest rates to historical lows, and helped drive prices upwards,” said the firm. This has created two major trends – bargain hunters of hard hit economies, like Thailand, and FOMO. Juwai’s report states the latter has “… driven some Asian buyers to a near frenzy.” 

US Real Estate Is Once Again the Top Spot For Asia’s Buyers

Real estate markets in the United States have once again taken the top stop for buyer demand. In 2020, the market ranks as the number one market for Asian buyers, up from the 4th spot a year before. Buyers are split between high-net worth and those with more modest incomes. 

High-net worth home buyers are looking at traditional “gateway cities.” New York, Los Angeles, and Miami top the list, and have always been popular, being hubs for immigration. The firm’s clients are largely buying part-time residences, or investment properties.

Households with more modest incomes are looking to buy in smaller cities. According to Juwai, “Asian buyers are looking to the nation’s smaller cities as a source of price appreciation.” These buyers are also less concentrated in gateways, and instead are following domestic trends.

Canada Real Estate Holds The Number 4 Spot

Canadian real estate still held its rank as the number four market for Asia’s real estate buyers. Buying remains concentrated in Toronto, Vancouver, “and — to a lesser extent — Montreal.” 

Even overseas buyers are being driven by FOMO, showing it’s not just a local thing. Juwai notes, “foreign buyers are eager to gain from fast-growing property prices and fear having to pay more if they postpone their purchase.” 

The pandemic slowed foreign real estate buying, but didn’t totally stop it. Domestic FOMO is still pushing buyers to search for property, even if they can’t cross the border. More interesting is overseas buyers aren’t necessarily sticking to major markets. Instead, many are looking at domestic buying trends, and chasing investment returns. This is a trend that BC’s property registry also reflects.

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11 Comments

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  • Ahmed 1 month ago

    Canada’s solution to foreign buyers was to give them permanent residency, regardless of intent to move to the country. It’s not foreign buying if you have your residency…. like it would be in other countries.

  • Holton 1 month ago

    If the pandemic’s lock down and economic depression didn’t drop prices what will? The government printing money certainly wont.

    The biggest mistake the government made was to save house prices during the pandemic. They had that one chance to lower housing prices. But instead they gave blanket mortgage deferrals.

    Now its too big to fail, only way out now is to inflate the h*”* out of everything else to decrease the debt burden over time.

    • SH 1 month ago

      The government and CMHC forced banks to grant no-questions-asked mortgage deferrals to LANDLORDS without verifying that the landlord’s tenant(s) were not paying rent. A free gift of extra cashflow to landlords so they can buy another property. A despicable and immoral act of unfairness considering renters got zilch from the government through the pandemic.

  • Jeff 1 month ago

    Looking at the list makes me wonder why BD often doesn’t cover real estate in the maritimes. Look at Halifax on that list! I really appreciate Better Dwelling’s insights into the markets – I’d love to see more coverage of the maritimes.

    I’m originally from Vancouver, and I see Halifax going through a similar mania. Homeowners around here are stoked, but I keep warming them to be careful what they wish for. Your property tax goes up. Everything inflates (because the carrying costs of housing and offices goes through the roof). And then ultimately none of your children or grandchildren will own anything, and they’ll be coming to you looking for a loan, or a place to live.

  • Sam 1 month ago

    What are the constraints to foreign buying for Canadian homes? Is it free-for all? Are there any stats for showing the scope of foreign ownership and affect on overall supply and demand? Can it be broken down into regions, foreign countries?

    Obviously there’s a difference between good immigrants who make their lives in Canada, and foreign nationals and/or corporations who own Canadian housing as investments.

    The question is “To what degree does foreign investment in Canadian Real Estate swallow up the demand and push housing costs beyond domestic affordability?” Would be nice to have some good stats and nice break-down. Might be good for governments to develop good policies.

  • Average Man 1 month ago

    Good.

    • Looking Longterm 1 month ago

      And yet realtors would have you believe there are no foreign buyers, at least not in Vancouver. I’ve had this discussion with a number of them.

      The government ought to do something to protect the future generations of Canadians. Take a note from New Zeland, heck even China on this one (you have to be a national to buy).

      We elect govt officials with the notion they represent us, and that they have our interest at heart. To say this is disappointing is an understatement. The more this goes on, the higher the temptation to move to a different country.

  • M.Bury 1 month ago

    Roaring Twenties Part 2!

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