- Chinese investment company Juwai, Asia’s largest overseas real estate portal is partnering with rich Asian investors to cater North American RE to them. The effects of foreign ownership have already been illustrated, but this new partnership means that foreign money will have a much bigger impact on the Canadian RE as this asset class becomes more accessible
- What are the impacts
- RE sales persons and brokerages benefit disproportionately
- RE developers can now draw upon a much bigger pool of funds to get projects off the ground
- Imagine the impact that this massive influx of funds will have on cities across North America
- It actually makes sense for developers as many are shifting away from pre-selling in local markets and selling whole condos overnight at sales events overseas
- Locals residents will be screwed as their buying power continues to deplete while more and more homeowner becomes investors instead of residents.
The effects are to be seen, but where there is demand, the market will supply the goods.