Canada China

You Can Now Buy US & Canadian Real Estate With Your Milk and Eggs… In China

You Can Now Buy US & Canadian Real Estate With Your Milk and Eggs… In China

It’s going to be a lot easier to buy overseas real estate from China in just a few days. Juwai, China’s largest overseas real estate firm, is partnering up JD.com – China’s largest retailer. Starting in April, JD.com users will see Juwai’s international real estate listings appear on the e-commerce platform. If you just mumbled “meh,” it’s because you don’t understand the size of audience Juwai just got access to.

JD.com Is The Amazon of China

If you’re from North America, you may not know who JD.com is, but you really should. Often called the “Amazon of China,”  they too gained popularity running an online bookstore, before selling everything else. The company is also walking in Amazon’s footsteps, replicating their business plan, but more aggressively. They also operate automated grocery stores, run Asia’s most advanced fulfillment centre, and now have the world’s largest delivery drone fleet. They also have a little cash behind them, landing investments from Tencent, China’s largest company, as well as a little American firm called Walmart.

The most important thing about JD.com is the scale. Their recent numbers show they have over 292.5 million customers, and they are China’s largest retailer. That’s on and offline, in case you’re wondering. Last Single’s Day, China’s version of Black Friday, they sold over US$19.1 billion worth of goods. If that number needs some context, it’s a little more than CIBC’s revenue for all of 2017… in one day. Saying they’re a large company is kind of an understatement.

The Deal

Juwai will partner with JD.com, and run an overseas real estate portal on their site. Properties from Canada, Australia, the United Kingdom, and the USA will be listed for sale beside ebooks, milk, and eggs. Once someone has expressed interest, a representative from Juwai will contact them to facilitate the closing of the sale. Because who hasn’t been clicking around on Amazon, and though oh f**k – I need a condo in Vancouver? The deal is actually very similar to the one Juwai launched with JD.com investor Tencent, just a few months ago.

It’s too early to tell whether Juwai’s footprint is translating into greater demand for overseas real estate. Technically speaking, it could just be consolidating demand, at the expense of competitors. What we do know is Juwai’s CEO probably thinks Vancouver real estate won’t be popular, since she called it “overpriced” just a few weeks ago.

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49 Comments

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  • BFO 9 months ago

    It won’t stop until there’s an outright ban on foreign ownership.

    • Bluetheimpala 9 months ago

      Yeah I’m starting to come around…but we need to make everything more transparent first so no one, foreign or Canadia. Can take advantage of our market.

  • Yu 9 months ago

    The ultimate commoditization. It’s now like ordering a Michael Kors watch from TopLife.

    Remember, just because it’s being offered, doesn’t mean it’s going to be bought. There’s too many international warnings to convince investors to get into this space right now, at the top of the cycle. Aside from a few money launderers, Mainland Chinese demand was mostly as an investment. If the investment becomes risky, they’ll look somewhere else. They’re trying to make money.

    Canadians want their houses to be good investments forever, but also don’t want anyone else to access it. That’s not how investments work. Foreign buyers go away when you have bad investments. They come when the investment is good.

    • Bluetheimpala 9 months ago

      They also can’t move their money around anymore, Xi is shutting it all down. Finally a decent comment from Yu… Good job my boy

    • MH 9 months ago

      “….Canadians want their houses to be good investments forever, but also don’t want anyone else to access it…”

      You should probably stop speaking on behalf of all Canadians. Also you should probably read something about what housing is primarily for (I don’t mean to spoil it but it’s for living). Also try a good book about investing, it may surprise you but there are more than enough ways to get rich / lose your shirt quick without depriving people from places to raise their families.

      • Bluetheimpala 9 months ago

        Thanks for bringing Me back to reality. Just so happy to see something from my boy Yu that isn’t comically out of place or subversive… I did what I do with my dog, praise her too early. Now Yu is going to poss on the couch. BAD YU!

    • Bob 9 months ago

      Canadians want their houses to be fair investments over long time periods. Canadians mostly want their houses to be homes. Canadians want their houses to be priced in the 3-5x income range.

      If that requires restriction on access, so be it.

    • Dana 9 months ago

      Investment and Money Laundering are two different things.

    • Knotmi Reelnm 9 months ago

      Fuck Yu. A house is not an investment. This is a marketing line from real estate agencies. A house is a place to have and raise children and this is being blocked by foreign capital under the guise of investment.

      Chinese are not buying as an investment. This is a marketing line from Chinese real estate agencies with local footprints making money hand over fist. They are buying to move low-cost subsidized capital out of the country before Xi takes it back or they see losses at home. Or worse, Xi has stated in his last communist party address his desire to take over the rest of the world, so sweeping up houses and stripping foreign nationals of the ability to bear and raise children in their own country seems like a good start.

      Based on the numbers in this article we can see that “a few money launders” could easily surpass the entire Canadian market supply of new residential housing. There needs to be a social or military response to this influx of capital since our governments aren’t even talking about it .

  • Trader Jim 9 months ago

    LOL! I love this so hard.

  • Ahmed 9 months ago

    This combined with Doug Ford in Ontario, could inflate the bubble even worse. Just remember, the bigger the bubble, the worse the consequences. We’re heading for a 50 cent dollar or wiping out the equity of new homebuyers. Take your pick!

    • Bluetheimpala 9 months ago

      Easy there bud. No need to bring politics in here; the issue is much bigger than one party or person. Also your chicken little cries will not be met with much approval here… Save that for the politicians and media who need to draw headlines.

    • Mmr 9 months ago

      Doug is winning no matter how much free money Wayne throwing away to buy votes. liberals willing to buy every one free car and free home as well to get votes. Can’t wait that ***** out of power soon.

    • testtrav 9 months ago

      agreed. it could be 40 cents to dollar as well the way it is heading if you factor in Nafta impacts etc

  • Bluetheimpala 9 months ago

    Do money launderers and capital migrants use ‘the amazon of China’ to move their money? With a trail that goes straight to emperor Xi so he can suck back his cash and/or lock them up when it suits him? Lol… The wheels are falling off in China with debt and capital flight being massive issues for the party…don’t assume anyone will be able to move their money out, this is just a co-branding exercise for PR… I used to do this as a profession.

    • Bluetheimpala 9 months ago

      Additional thought : advertising of this nature,mass market display banners, is generally viewed as a last resort for many companies. If there is natural demand for a product AdWords, good SEM and some CRM do the job. Maybe targeted display but again the ROI is generally lower than the other channels. Is this a sign of a slowdown and now they need to advertise to keep the money train going?

  • Sergio 9 months ago

    Look at these ghost cities in China, it’s scary

    https://youtu.be/V3XfpYxHKCo?t=29s
    https://youtu.be/BcyYyyaPz84?t=6m46s

    Hopefully we won’t end up with the same situation in Vancouver or Toronto

    • vnm 9 months ago

      Wow, how creepy, would make a great Twilight Zone set.

  • Maverick 9 months ago

    Alright guys! I have been silently following this site for a while and listening to some very wise advise from people like grizzly guz and Bluetheimpala to name a few. Need some more now. From what I have noticed in the market here in Brampton, people acknowlege that the market is going down and has been for a while but the sellers and realtors together wont sell a property at the correct prices. They still want the same amount of money as last year.

    Do you think its a good idea to get in now and take a 2 % discount or wait some more? BTW I emailed have this guys trying to sell me his builder house which is out of my budget but they are willing to pay anything above my mortgage and will take the hit if the market goes down further. He said they will only want their money back after a few years and if the price increases then we share the profit or I buy it off them and if it decreases then they bear the loss. Only one thing clear from their offer as of now, that they cannot carry this house since they have already booked/invested in too many properties.

    • Grizzly Gus 9 months ago

      If you can I would recommend waiting. Even if myself and most of the commentators on this site are proven to be wrong about a pending correction-recession-crash I do not see prices taking off like they have in the past few years. B-20 and rate rises should prevent that. I would say the worst case scenario to waiting is that you perhaps pay the same or at most 5% higher a year or so from now. If the correction-recession-crash does occur you could save a boat load and avoid a situation of negative equity, capital loss, and all the fun psychological effects that could have on you and your family. I see it as a 5% on one side vs 30-50% on the other.
      In regards to people being stubborn about their prices, that will continue until it becomes evident to the masses that something is rotten in the state of Denmark.
      That builder you speak of and similar individuals could actually be what triggers that conclusion. Its clear that he cannot afford to hold that many properties.

      I would only buy today if it was to slightly upgrade my own personal property. IE Im selling a property, buying a better one, and only increasing my debt load slightly. If you are starting a young family and can’t tolerate the risk of landlords forcing you to move that could be another reason. If you do not have any mortgage debt right now, I think its a terrible time to take some on.

      • Maverick 9 months ago

        Thanks again! I am in no rush so I can wait, its just that with prices not correcting and these people still not willing to lower down the cost then the new houses coming in the market for owners who bought them in 2016-17 are already priced higher by the builder so they are unwilling to sell it for anything less. It is a vicious circle and realtors keep advertising that the market is good plus I can see how they convince people. There was this realtor I met last month and she ran a filter on the site and showed me properties still selling for the same prices as in 2017. Not everybody questions them and there are some innocent first time buyers who are lured into spending more than what they can afford and the cycle continues. I have only been safe till now because I am very clear about my spending ability and would not spend above that.

        I like the idea that its 5% higher vs atleast 20-30% lower in the next year. I just want someone to educate all these buyers/sellers who do not understand the risk they are putting themselves through and consequently forcing people like me out of the market.

        • Grizzly Gus 9 months ago

          No problem, I believe the stats imply prices are going to drop especially in areas like Brampton but I could be completely wrong. I should also add, and I believe someone else pointed this out a few days ago; If prices do drop big time, a recession will 100% occur and it could become very difficult to get any financing from a bank. One other downside to waiting is that depending on your job (its security) and income a bad recession may force you to wait much longer before banks would be willing to lend to you. BUT if that is your situation, and you did jump into the market today, you would be at a much higher risk of default and eventual bankruptcy. Still probably better to wait it out.

        • xelan 9 months ago

          Here are the stats for Brampton at the moment:
          YoY ave. price change: -9%
          Months of inventory: 2 (which is still low)
          Ave. days on the market: 18 (this is official number, unofficial is much higher due to relistings)

          It looks very similar to Toronto market to me where we definitely se changes but the market is still quite strong. So your realtor is probably right when she says that houses are selling well in Brampton.

          Grizzly already answered your question, I just want to add that it may take 2-4 more years for the market to go down fully. You should make your decision if you are ready to wait or you want to pay premium but get a new house right now.

          In general Canadian home prices are overvalued by at least by 30-50%. Lots of economists told that including our Central Banker Stephen Poloz in 2014.
          It doesn’t mean prices will go down right now but that indicates sustainable level of house prices based on fundamentals.

          • Maverick 9 months ago

            Thanks Xelan! Apparently you either have to pretend that you know it all or you are considered meek on this website. I am not an expert on real estate and economy has never been my favourite subject. Considering I have only been in Canada for 2.5 years I dont understand the background on the real estate year and what has happened in the past. But I am trying to observe and avoid a big mistake. Its been so topsy turvy since I have moved here that I thought it was natural to be confused but according to Blue that isn’t an option.

    • Bluetheimpala 9 months ago

      I don’t have time to unpack this but this smells subversive and has bullshit written all over it. I think you should buy now, maybe even double down and extract some existing equity to grab another. Or think about the fundamentals and what could play out. If you have been reading this site I find it hard to believe you posted this comment unless their is an ulterior motive. Seems like all we have are pigs and possum. Then again, I could be wrong about you, time will tell. Tick tock.

      • Grizzly Gus 9 months ago

        I might have been trolled.

        • Maverick 9 months ago

          No you were not! I dont understand what Blue read between the lines but I just gave you a practical situation and asked for advice. Even if I have been reading this site and believed every word, you need to understand that someone who has been waiting for 2 years to buy his first house and still cant get in when the market has been going down for almost a year, self doubt will definitely creep in. And that was the whole point of my earlier comment.

          @Blue What ulterior motive can you possibly think of?

          • xelan 9 months ago

            Maverick, you are right, talks about Toronto/Vancouver house bubbles are so old and proven to be wrong so many times so it’s understandable why people are having doubt.

            But do you remember in last 9 years when you see YoY prices drop for any GTA areas? So it’s definitely different this time. It may return to growth at any moment still but at least it’s different therefore worth waiting (IMHO).

            Let me give you an example of one of GTA locations: Whitchurch-Stouffville
            YoY average price drop at the moment: -33.2%
            Month of inventory: 6
            Ave. days on the market: 20 (official number)
            And all the graphs for this area are only getting worse every day.

            All those numbers look like a full crash going on right now in front of our eyes. And believe me it’s not the only GTA location like this. 6 months of inventory means for each buyer you have 6 houses available for sale. This is a terrible reading.
            Some parts of GTA including Brampton are not showing those signs yet, but some are crashing in full mode.

          • Bluetheimpala 9 months ago

            Mav, I have a couple minutes: a) your entry was submissive and an attempt at placating by b)referencing a couple of the more active posters and asking for help cuz you know we’re so smart (not even close) then c)note some believable/semi-truths about how the market is perceiving the correction (people know it is happening but prices just aren’t coming down + no one wants to sell unless they get 2016/2017 money) which then leads to d)a dilemma which the masses will face, take the 2% discount or wait (if you have silently been watching you know we’re 6-12 months away for a trough so it is laughable you would suggest ‘door number fail!’) and then finish with d)I’d like 5% higher vs 30% lower which is subversive and suggesting the market has normalized and there will be moderate (though still high) growth of 5% YoY…in brampton, where housing is getting fucking crushed and I think will see a big dive…dude you can blather on all you like but there are so many things off about your post that I’m not giving you the benefit of the doubt. Maybe I misread the intent of your post. Whatever, you’re collateral damage. See you tomorrow.

  • Mmr 9 months ago

    Don’t just blame the Chinese. Local people are equally responsible. I know an agent she has bought 4 condos in last theee year her self. Another couple I know based on gta has five investment property in last theee year. There are way too many people getting too greddy and every one is holding off to make as much as money possible. That agent was telling me she will make average 300k from each of her condo which she bought just three years ago an unprecedented return on investment and she want to hold it for now to sell it even for more later. Wtf is happening. Greed omg more and more and more.

    • Roger Troutman 9 months ago

      I don’t see what’s fundamentally wrong with buying 3 condos and renting them out? Does it not drive construction and new housing developments and also provide much needed rental housing, density and jobs?

      What some may call greed, I see someone who will be financially able to take care of themselves and their families into retirement and not rely on government assistance. Perhaps do renos on their own home, or improve their rental properties and put some of that money back into the economy.

      Then again, I do believe housing is a commodity and always has been since day one which probably puts me in the minority here.

      • vnm 9 months ago

        What selfish blinkered drivel.
        That’s like claiming leeches help circulate blood.

        • Roger Troutman 9 months ago

          Seems an odd choice to use leeches to describe the person seeking financial independence.

          Assuming you are pro-correction Vnm. Is it not also for selfish reasons, or have you reached enlightenment and no longer need earthly possessions?

          • Mmr 9 months ago

            I have rentals at Toronto too for last 10 year but I honestly think we need correction now! Otherwise it will be really really bad. I get shocked when I see people buy 1200 dollar per square feet for resale condo in downtown now a days. This is beyond stupidity.

      • CS 9 months ago

        Seriously?

        You just read an article that basically claims that Canadian Real Estate is being listed in the clearance section of Giant Tiger…and then you spout off how great an investment real estate is.

        The only thing I have ever bought off Amazon is shit from China.

        Shit. Tablet covers, a bathing suit, urns for my dogs ashes, crystals for my daughters dance dress, kids books, you know consumer shit direct from china.

        Real estate being listed on a junk ass online retail site for exposure screams desperation.

        But you go ahead keep speculating in real estate because this time is different…..right???

        Im guessing the smart Chinese have already dumped their canadian real estate and this is juwai hitting up the desperate chinese who will have everything seized just like anbang.

        I wonder what the chinese symbol for FOMO looks like?

        🆘 maybe?

        • Roger Troutman 9 months ago

          I think you were replying to me CS. First of all you seem quite excited, it’s nice to see such enthusiasm!

          I may be wrong but I don’t consider a rental unit as being speculation. I’m talking about a situation where there is no intention of selling, but rather building equity through paying down the mortgage and hopefully having that rental income later in life when you are no longer working.

          Also, I’m not talking about putting 5-15% down and hoping the price goes up. I’m talking about grown-ups who put closer to 50% down, in it for the long run fully realizing that all markets have their ebbs and flows.

      • Grizzly Gus 9 months ago

        Nothing wrong with owning rental properties and even multiple ones. At least at the individual level. This is a capitalist society. Someone needs to own it. People need rentals. The only other alternative is to have a bunch of government run houses.

        The issue is a systemic one. In an environment with unsustainable price growth, the system is allowing individuals to over leverage themselves by buying multiple properties which further reduces supply and further increases price growth. If such individuals are able to weather the coming storm than fair game, however I feel a lot of them are going to get wiped out, especially if all 5 of their investment properties were picked up in the last two years. Their properties are going to get dumped on the market, which is going to magnify the crash and recession.

        • Grizzly Gus 9 months ago

          Those investors will be bankrupt, however we as tax payers will be bailing out the lenders that allowed them to carry such debts.

      • xelan 9 months ago

        If you put the question this way nothing is wrong with buying 3 condos and renting them out.
        What wrong is:
        – Thinking that your property will go up in value forever (check US historical home prices chart)
        – Thinking that if property price will go down it will always recover. ( check Japan’s historical home prices chart)
        – Make business decisions based on past property price growth performance
        – Use or count on existing equity without planning for potential house price declines
        – Perform business planning with potential interest rate increase in mind.
        I believe those points will be more than enough. How many landlords you think comply with all those? I have many friends with investment properties but none of those actually perform proper risk planning.

        Everyone is buying a condo -> rent it out -> use rental income to buy new condo -> etc. rinse and repeat. As a result they have 4-5 condos with 70-80 LTV, close to zero cash flow but they extremely happy that their equity is growing extremely well.

        By 2020 we should expect mortgage rates in 5% range which means my friends have to renew their 4-5 mortgages at higher rate and their interest payments will raise 30-40%. Rent will only grow 4-5% because of fundamentals and rent control. So cash flow will accidently become negative. Now they have only 2 choices – either selling some of those properties or tapping into their virtual equity. And if the house prices will decline equity will evaporate pretty quickly and now they have much more liabilities than income. They have to sell properties at that point or it’s a game over.

        And even if we(taxpayers) won’t have to bail out the banks we are forced to wait until that scenario plays out and all inexperienced landlords/investors who doesn’t do proper risk assessment and planning are wiped out from the market and release their properties. It takes years, even decades and it’s very sad.

        I can buy a house now, but I realize that I overpay now and when interest rate rises I overpay again because I pay higher interest on my overpayed house on mortgage renewal. This is a double loose scenario.

  • vnm 9 months ago

    What value does adding a 3 Condo owning amateur landlord bring to the equation?

    Money for nothing, don’t you right wing free market guys usually hate welfare bums for that?

    You fill out a bunch of forms and get cheques in the mail. What’s the difference?

    • Grizzly Gus 9 months ago

      Value=
      New home creation
      Related employment industries
      Increase in rental supply
      Liquidity for the people who took some of their chips of the table

      Difference between welfare
      Upkeep and maintenance
      Taxes
      Tenants – I hate people
      Risk – you can lose value on your home, or your home can be destroyed. You also lose money when properties are vacant.

  • vnm 9 months ago

    Street people increase rental supply, where’s their cheque for that?. They also generate all kinds of related industry employment. And new home creation … they manage that with just a few cardboard boxes.

    Hmm, i think you may have actually reinforced the argument!

    • Grizzly Gus 9 months ago

      Their cheque is called welfare………….. The related employment is mostly in the public sector and not for profits. Jobs that usually don’t pay as well as construction, finance, legal.

      I will add though that welfare, social programs and shelter are things we should have and provide to those in need. Unfortunately, I feel homelessness will be increasing big time in the coming recession. We will require more government assistance to help people survive. The government collects its money from the private sector.

      I am not a defender of housing speculation or flippers. That being individuals who are buying up stock (taking away from average people who want to buy), leaving them empty (hurting average people who want to rent) or renting them out temporarily (knowing that they are going to flip and will have to kick out the current tenant in a short period) all so they can flip it at a higher price later on. This just magnify s the housing bubble on the way up, helping to further destabilize our economy and hurt us that much more on the way down.

      That being said, there is a big difference between speculators and those looking to make a long term investment in a rental property. I believe the latter is actually a good thing for our economy and over the long term helps the average person. I can see how its easy to confuse the two however. True rental investors (or at least intelligent ones) have not been seen for the past 2-3 years because the numbers do not make any sense.

      • vnm 9 months ago

        “Their cheque is called welfare…………..”
        Nice try, but I meant street people street people, who don’t get welfare cheques.

        Otherwise, I agree completely with everything you say, including true rental investors.
        It’s the rampant speculation and flipping that needs to be reigned in.

        • Grizzly Gus 9 months ago

          Sorry I didn’t realize we were talking about “street people street people” I thought we were talking about as you put it “welfare bums”. Assumed to be a “welfare bum” you were someone on welfare.

          Question though, if “street people street people” don’t bother to fill out the forms or collect on welfare, how would we get a rent cheque into their hands

          • vnm 9 months ago

            Well, I did say “street people”, twice in fact. I can see mixing that up with, say, “purple beets”, but “welfare bum?”
            Anyway, about the rent cheques … You could try putting them in the donation cups, but it seems like these guys run a mostly cash-only business.
            But hang on a sec … it’s the welfare bums who fill out forms in return for cheques, not the street people street people.

          • Grizzly Gus 9 months ago

            I don’t like where this is going, I dont mean to insult the homeless or less fortunate. I’m sure for those without a home it is difficult to collect anything. No mailing address. Lower income folks not being able to afford a place in the city while speculators and money launderers rack it in big is a massive issue. Especially considering their actions and gains today are going to hurt those lower income folks very hard when this all comes collapsing down.

            I just dont think it is fair to compare a landlord to someone collecting welfare. And while landlords are usually not the most popular, in normal times it serves a very good function to society.

  • vnm 9 months ago

    Yeah, sorry, I’m really just trying to make the point that uninvited landlords with a profit motive actually do adversely effect low income housing.
    There is a real problem with rooming houses in the city being bought up and tenants ending up on the street.
    I heard an interview on the radio last week with a group of professional landlords, they were clearly good people, and lamented the market exploitations, and negative social consequences of a market flooded by amateurs and financial barbarians.

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