Colliers expects capital flows by Chinese investors into Canadian commercial real estate market
Canadian property owners looking for prospective buyers can expect interest from Chinese investors seeking to park their capital in a stable market like Canada, according to a report released by Colliers International.Chinese funds were behind several landmark deals that took place across the country (which the report details) – and Colliers forecasts this activity to continue.
According to the report, less stringent regulations on investing beyond the Mainland, the possibility of an overheated Chinese property market and a scarce supply of available local properties are driving Chinese investors to buy overseas. While Chinese investment in Canadian real estate, particularly in Metro Vancouver, is not a new phenomenon, the rising wave of Asian investors purchasing property across the country is one worth watching – and riding.
Sarah Goulding, National Market Intelligence Analyst for Colliers International Canada, goes on to say that for Canadian commercial real estate owners trying to attract Chinese investors, understanding this buyer segment’s choice properties and purchasing style is key: “Chinese investor activity to date has been land development-oriented,” she explains. “However, with expanding capital flows and increasing demand for assets, we expect Chinese bidders to be active on trophy investment offerings such as Class A office projects. Opportunities in major cities and high-profile locations are also a major lure. Canadian property owners marketing assets to Chinese buyers should consider this information, as well as ensure these investors are familiar and comfortable with the North American buying process.”