The Vancouver-China Nexus Shao Long Li

Transcription

1 The Vancouver-China Nexus Shao Long Li President Modern International Holding Ltd.

2 Discussion Topics The Chinese Community Favorable Cities for Chinese Investors Why Vancouver? Canadian Dollar Depreciation Accessible Mortgage Loans Policies & Regulations Comparison of Vancouver & Shanghai Real Estate Projects I ve Developed in Vancouver

3 The Chinese Community Statistics Canada Between 2005 and 2012, 37,000 Chinese millionaires have become permanent residents in B.C. Census Data 2011 In 2011, 411,470 Chinese Canadians have resided in Metro Vancouver. National Post 2014 Richmond is 41% Chinese-speaking. UBC Enrolment Report International Undergraduate Enrolment: 32% (2,515) students are from China International Graduate Enrolment: 25% (815) students are from China

4 The Chinese Community The Traditional Chinese Cultural Mindset Land ownership is prestigious. Land = Wealth. In ancient history, land was treated like treasure. Due to ancient China s heavy reliance on agriculture, land ownership has always been a status symbol. Owning a home is a prerequisite for marriage. Real property is believed to be one of the safest and most important investment types.

5 The Chinese Community Typical Chinese Investment Portfolio Real estate investment > 60% in Chinese investment portfolio times more than the average investment portfolio in a developed western country Century News, Chinese news group Factors that shape the real estate oriented Chinese investment portfolio: Fast growing economy, Massive population, Incredible production speeds, Recent government restructuring of social and economic policies.

6 Favorable Cities for Chinese Investors Chinese buyers spent $12.7 billion on real estate in Vancouver in National Bank of Canada

7 Why Vancouver for Chinese Buyers? One of the most livable cities in the world: Great living environment, Celebrated multiculturalism, Low crime rate, Established social welfare system, Stable market, Mature politics.

8 Why Vancouver for Chinese Buyers? Existing demographic and infrastructure for Chinese culture: Language accessibility, A Chinese history in B.C. that dates back almost 200 years, Asian targeted living: cuisine, shopping, recreation, etc. Opportunities to have the best of both worlds: western style living and eastern style culture.

9 Why Vancouver for Chinese Buyers? The greatest motivation for Chinese Buyers in Vancouver: The quality of education accessible to their children. Main factors to consider: Having a good education is a big part of the Chinese cultural mindset. Education in China, while satisfactory, is not your first choice if you can afford better. Chinese parents want to leave a legacy behind for the next generation. e.g. land, real estate, insurance, physical properties, etc. Chinese parents like to purchase real estate to shelter their children who study overseas. In Vancouver, the purchase is now also an investment opportunity. Vancouver s academic institutions are world renown. Schools like UBC, SFU, Emily Carr, and BCIT help make Vancouver an academically satisfactory city to invest in and ultimately, to raise a family in.

10 Depreciation of the Canadian Dollar The Exchange of CAD v.s. RMB from 2011 to 2016

11 Accessible Mortgage Loan for Chinese Buyers A few banks (e.g. HSBC, CIBC, etc.) provide home mortgages to foreign workers, international students and non-residents. Foreigners now have easier accessibility to mortgage loans. Often times easier than China. Overall interests rates are much lower and stable in Vancouver, especially in comparison to what is offered in China. Source: CIBC Website April 12th 2016

12 Policies & Regulations 10 Year Visitor Visa issued by Canada & China Directly increased commercial spending by tourists. According to the World Travel and Tourism Council, in 2015, Chinese tourism increased by 53% compared to Total overseas consumption by Chinese tourism was more than $200 billion USD. Leasehold in China v.s. Fee Simple Ownership in Vancouver In China, the land belongs to state and party. Buying land = obtaining land use rights for 70 years. Similar to a leasehold ownership. Selling land is a large portion of state business and GDP growth, however, terms are often unclear. In Vancouver, most properties are fee simple ownership. Ownership of both land and improvements on the land. Chinese buyers prefer fee simple ownership.

13 Comparison of Vancouver & Shanghai Real Estate Vancouver Shanghai

14 A $300,000 Property in Vancouver One bedroom. 25 th floor. 471 sq.ft. Central Burnaby. Great mountain and urban view. 1 free parking spot. World-class amenities. Aesthetically appealing building. Brand new. A 3 minute walk to the Skytrain.

15 A $300,000 Property in Shanghai One bedroom. 5 th floor. 387 sq.ft. 10 km distance to city center. (Grade C Location). No view. No parking spot. $30,000 to acquire one. No amenities. Old building. 20-year-old apartment. Half an hour drive to the subway.

16 $2 Million Properties in Vancouver & Shanghai Vancouver Shanghai

17 $2 Million Properties in Vancouver & Shanghai Vancouver Five bedrooms. House. Shanghai Three bedrooms. 15 th floor apartment. 2,758 sq.ft. 1,400 sq.ft. Vancouver East. 41 st and Knight St. 1-year-old house. Garage. Beautiful garden. Pudong, Shanghai. City center location. 10-year-old high-rise apartment. No parking spot. $50,000 to acquire one. Great city views.

18 $6 Million Property in Vancouver v.s. $8 Million Property in Shanghai Vancouver Shanghai

19 Vancouver Shanghai 4 bedrooms. Penthouse. 4 bedrooms. Apartment. 3,077 sq.ft. plus 3,248 sq.ft. patio. 3,229 sq.ft. plus 400 sq.ft. balcony. Coal Harbour, Vancouver. 8-year-old penthouse. $6 Million Property in Vancouver v.s. $8 Million Property in Shanghai Private roof top garden. Heated pool. Unbeatable city, ocean and mountain view. Lujiazui, Pudong, Shanghai. (Favorable location in Shanghai). 7-year-old apartment. No private patio. 5 full baths. 3 full baths. Great river and city view.

20 Projects I ve Developed in Vancouver $1 million dollar town homes

21 Jade Exhibition Center

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23 Thank You