Chinese real estate investors are reshaping the market

Good long-read in Maclean’s on the impact of Chinese investors and immigrants in the Vancouver, Toronto and other real estate markets. Most interesting point for me was that Chinese Canadians, equally affected by rising housing prices, are participating more in the debates:

Last November, the 38-year-old lawyer and former head of the B.C. Civil Liberties Association helped Andy Yan, acting director of SFU’s City Program, with his headline-grabbing study on home buying in Eby’s West Side riding. In addition to the incendiary data involving Chinese names, the study revealed that 36 per cent of owners on homes worth an average of $3.05 million listed their occupations as housewives or students with little or no income. Fully 18 per cent of the 172 homes purchased were not mortgaged by banks. That means on Vancouver’s West Side alone over a six-month period last year, roughly $100 million in cash came pouring into Canada, almost all of it from China. Yet the homeowners would in all likelihood pay little or no income tax. The total value of all homes sold in the study period topped a half-billion dollars.

Predictably, when Yan’s study was published, a chorus of voices, including former developer Bob Ransford, jumped to criticize Yan: “The danger is intolerance, racism, singling out certain groups of people saying they’re to blame for this,” said Ransford. But such labels have failed to muffle the debate, particularly as more and more Chinese-Canadian voices have begun calling out white developers and academics for making the claim. Fung, the software engineer, says he’s among those “deeply pissed off” by what he considers a slur: “The only people claiming racism are white Anglo-Saxon males—that’s it. These are the same guys trying to label Andy Yan—whose grandparents paid the head tax—a racist? It’s absurd.”

That sentiment is shared by Ian Young, the South China Morning Post’s Vancouver correspondent and author of the popular Hongcouver blog. Young, who is ethnically Chinese and was raised in Australia and Hong Kong, says the issue is one of money, not of race. “What defines those people in terms of their behaviour here in Vancouver, and in terms of their impact on affordability, is not their ‘Chineseness,’ it’s their ‘millionaireness,’ ” he says. “The idea that there is commonality to be found in the Chineseness—I find that kind of insulting. Why would you think that someone was better defined by the colour of their skin than the colour of their money?”

This is why Fung believes it is so vitally important for Chinese-Canadian voices to encourage a debate over the impact of foreign investment on the local market. “Chinese people have a tendency to be a little quiet, we tend to want to not create ripples—culturally it’s something we’re not comfortable with.”

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