Market Benefits from Chinese Buyers
The Western Investor ran an interesting article this month about Thomas Fung's expansion of Aberdeen Centre. Fung believes that one reason why most of his commercial space at Phase 3 of Aberdeen Centre sold out in three days is because HST is payable on commercial leases, but not on the purchase of commercial strata units. Another factor in the success of the expansion's sale was China granting Canada approved destination status, making it easier for Chinese citizens to visit Canada. This change is also being reflected by the large number of Chinese buyers, especially at the upper end of the residential real estate market.
The low interest rates are still fueling the lower end of the market, allowing the middle of the market to feel pressure from beneath due to low interest rates and pressure from above due to Mainland Chinese buyers. This creates a solid market for the majority of homes being listed today, with both ends of the market supporting the middle.
