Chinese Buyers Will Continue to Impact the Luxury Home Market in 2014

  It’s no secret that foreign investors from China have made up a large component of the buyers in Canadian cities such as Toronto and Vancouver. This is especially true within the luxury home market  and the prediction for 2014 is that the number of affluent Chinese  will be an even bigger force in the U.S. and Canadian luxury property market.  Already the second largest foreign buyer group in the U.S. (after Canadians), wealthy Chinese are drawn to the U.S. and Canada for several reasons:

Growing numbers of affluent Chinese send their kids to North America for university education.  Major university towns will see growing numbers of Chinese buyers as Mom and Dad look for a condo for the student and perhaps a luxury home for use when they visit.  Sometimes a student in the U.S. or Canada is the first step toward relocation.

Chinese, who are looking to make a favorable currency play, invest where there is economic value and political stability.  Expect them to continue to gravitate to cities where there are Asian population centers.  Cities like San Francisco where I just visited and Vancouver are good examples where a property investment is viewed favourably by Chinese

Look for very wealthy Chinese, who want a degree of status both here and back home,  look to buy what might be considered as “trophy” properties in Manhattan, San Francisco, Los Angeles, Toronto, Vancouver and a few other major cities that offer global recognition.

While we have yet to see a major influx of Chinese buying into the local luxury home market, one only need to visit the Village at Blue Mountain on a busy summer weekend or during the ski season to see that a strong Asian contingent has embraced the Southern Georgian Bay lifestyle.  I suspect in time as the luxury home market in our area matures and expands, it will gain the required notoriety that will attract not only affluent Chinese, but other foreign buyers as well.