Saskatoon property entices Chinese buyers
Chinese newcomers have started making big moves in the Saskatoon residential property market over the past year, local Realtors say.
Realtor Henry Moulin said Chinese people began snapping up local homes in higher numbers in 2012, and the trend shows no sign of stopping.
“The Chinese now know where Saskatchewan is,” he said. “I’m doing so much business with them that I hired somebody that is fluent in Mandarin and Cantonese.”
Many of these buyers are recent immigrants from mainland China, and are buying all across the city, particularly on the east side in the Arbor Creek and Willowgrove areas, Moulin said. While some are buying high-end homes, most are shopping in the $400,000 range.
Moulin flew to Beijing to drum up business recently. The newcomers are attracted by Saskatchewan’s longterm economic prospects and the presence of a university in the city, he said.
“Saskatoon has the No. 1 air and water quality for anywhere in Canada, and that’s really important to them,” he said.
“The more people that come here and invest from China, the more the word gets around.”
Median annual temperatures in northern China aren’t too different from Saskatoon, so people from that region aren’t terribly scared of Saskatchewan winters, he noted.
Moulin said many Chinese people must pay a 35 per cent down payment on their houses, which is typical for purchasers who do not have permanent residency in Canada.
Saskatoon Realtor Norm Fisher has also noticed the rise in home purchases by Chinese people. They’re buying sooner after arrival than other immigrant groups, he said.
“That is one of the interesting differences between Chinese immigrants and maybe those from India or Pakistan — they do tend to buy immediately,” he said.
Other migrants from Asian countries typically hold off on buying a home for three to five years, while they gain the financial traction needed to take on a mortgage, but Chinese immigrants often arrive on Canada’s shores with some financial weight to throw around, Fisher said.
“A little earlier this year, we sold a 2,000-square-foot two-storey in Lakeridge, priced around $500,000,” he recalled. “A Chinese buyer paid cash for the house.”
Heavy investment from China in Vancouver and Toronto reportedly contributed to a spike in real estate prices in those cities, often attributed to speculation. Those bubbles appear to be popping.
But Saskatoon will likely not suffer the same fate, according to University of Saskatchewan economist Don Gilchrist.
“Vancouver is circumscribed by mountains, so there is a certain limit to what can be supplied by way of new housing,” he said.
“That’s always provided for higher prices in Vancouver.”
By contrast, Saskatoon has plenty of room, which will likely keep prices at a reasonable level, he said.