Belying the common notion that foreign buyers acquire properties in Canada’s most in-demand metropolitan real estate markets from a distance, these consumers are actually already staying put in these cities prior to their purchases, according to an Ontario realtor.
In a Globe and Mail
report by Carolyn Ireland, Toronto-based ReMax Realtron Realty Inc. agent Huang Yu noted that many of the foreign nationals he transacts with are already working in the area and buying homes to ensure continuity in their children’s education.
Yu cited a recent deal he worked on, where a buyer of a prized property in 66 Hillhurst Dr., Richmond Hill beat 11 rivals with a bid nearly $1 million greater than asking. The winning customer purchased the property for $2.85 million, approximately $970,000 above the $1.88-million asking price.
The transaction’s value ended up being way higher than the previous record for a similar type of house in the locale ($2.37 million), and far exceeded Yu’s initial projections of $2.5M for the property.
“We did not think we could go this high. Everybody was surprised,” Yu recalled, adding that the surrounding area has proven quite attractive to Chinese nationals.
The buyers were Chinese immigrants who are now working in the city and are planning to send their children to the renowned Bayview Secondary School, Yu said.
The realtor stated that the staging and aesthetics of the home likely contributed to its appeal, as well. 66 Hillhurst featured marble floors, an expansive living room with an integrated cathedral-type ceiling, a loft situated at the second storey, four bedrooms, and six bathrooms.
Earlier this year, the federal government allocated half a million dollars for research on methods of accurately determining the exact impact of foreign buyers—which many point at as a main factor driving out-of-control price growth—on Canada’s red-hot real estate markets.
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