Macdonald Realty listings get extra exposure on international website LeadingRE.com

 PrintMacdonald Realty offers consumers an easy way to search home listings and identify top real estate firms in markets worldwide through its participation in the new LeadingRE.com.

The site also brings global exposure for our BC real estate listings and provides consumer resources, such as cost of living comparisons, school information, recent home sales and other local resources and statistics. LeadingRE.com can be accessed via macrealty.com by clicking the Global Home Search logo on the homepage.

“LeadingRE.com now provides home buyers and sellers an easy way to identify the top-performing real estate companies in a given market by searching over 400,000 member listings or by using our comprehensive member directory,” notes Leading Real Estate Companies of the World Director of Strategic Development Rhett Damon. “Our network linking strategy connects many of our high-traffic member sites to LeadingRE.com’s national or global search, providing valuable listing exposure to home sellers.”

 

LeadingRE-homepage-2017

 

 

We're_Local_Global_Horizontal_RGB_Color_TM

For more information about Macdonald Realty and our LeadingRE partnership please email macrealty@macrealty.com or call 1-877-278-3888.  Looking to buy or sell, locally or globally?  Allow us to make a quality introduction to be matched with an independent brokerage and REALTOR® working in your area.

Quality | Connections | Independence

PrintMacdonald Realty is a member of Leading Real Estate Companies of the World™, a global community of real estate companies awarded membership based on rigorous standards for service and performance.

This LeadingRE distinction ensures that you can count on a quality real estate experience when working with us and will benefit from our global connections to buyers and high quality real estate professionals around the world.

 

[Read more…]

Macdonald Realty nominated for HGTV’s Ultimate House Hunt 2016

It is time for HGTV.com’s Ultimate House Hunt once again!

This year Macdonald Realty is nominated in the Best International Home category for a spectacular Three-Level Penthouse in Vancouver, Canada.  This is the category we won last year for The Sanctuary, a luxury home we listed and sold in Squamish B.C.

spectacular Three-Level Penthouse in Vancouver

SENSATIONAL TROPHY VANCOUVER PENTHOUSE – Atop a 32 storey skyscraper this three level sky mansion sprawls over 6,000 square feet of living space and 1,700 square feet of terraces. Outstanding first impressions from the direct elevator access leading to a grand living room featuring soaring 16 foot ceilings, panoramic English Bay views and a grand curved staircase. Master boasts gas fireplace, large steam shower and a two person jetted tub situated mid room. Main level offers second master suite with fireplace and numerous built-in cabinets. Bespoke chef’s kitchen with 48 inch Décor six burner range, numerous built-in ovens and appliances anchored by huge granite island and access to 700 square foot terrace with fireplace and built-in Viking BBQ. Family room with grand wet bar, air conditioning, concierge and six-car private garage. LP $7,838,000

Macdonald Realty nominated for HGTV luxury home contest

Tour amazing homes across the globe, vote for your favourites, and enter for your chance to win a $10,000 cash prize! And remember you can vote for your favourites once a day. Follow the instructions below to vote for Macdonald Realty’s Nominee for HGTV’s Ultimate House Hunt 2016:

Step 1: Tour the homes in the category.
Step 2: When you’ve found your favorite, click “I’m Ready to Vote.”
Step 3: Choose your favorite by clicking “Vote.”
Step 4: Click “Continue to Next Category” to tour more homes.

Click here to vote.

Vote for HGTV's Ultimate House Hunt 2016

LeadingRE exceeds $351 billion USD in sales

Macdonald Realty is pleased to share that Leading Real Estate Companies of the World®, our global real estate network of market-leading independent brokerages, has announced its most recent sales statistics for 2015, reflecting ongoing dominance in the residential real estate market. Network affiliates produced over one million transactions valued at $351 billion USD in home sales last year, outperforming its closest network competitor by $86 billion, which further widened the margin over the previous year.
LeadingRE Annual Sales 2015 Graph

Leading Real Estate Companies of the World® affiliates had 27% of the total sales among the top 500 firms in the U.S., outselling all other networks in home sales by 48%, according to REAL Trends 500, a ranking of the largest U.S. companies by transaction sides and sales volume. Members also represented 14 of the top 25 firms in the U.S. in sales volume among this prestigious group.

[Read more…]

Macdonald Realty Recognized for Excellence in Service and Marketing at Global Real Estate Conference

VANCOUVER, B.C., Canada – (March 2, 2016) – Macdonald Realty received the prestigious Global Alliance Award from Leading Real Estate Companies of the World® (LeadingRE), a global network of more than 500 high quality independent real estate firms. The award was presented at the network’s Annual Awards Gala February 25 at the Fontainebleau Miami Beach. The event was part of LeadingRE’s Conference Week, which has attracted a distinguished audience of nearly 2,500 real estate professionals from 25 countries.

Winner Global Alliance Award

For the fourth consecutive year, Macdonald Realty was presented the Global Alliance Award. This award is presented to the international firm that closes the most cross-border referrals, utilizing the strength of the LeadingRE network to assist their local clients with global real estate investment and relocation services.

“The companies recognized with one of these prestigious awards have shown a real commitment to maximizing specific services available to them through their affiliation as a way to extend the scope of their offerings,” LeadingRE President/CEO Pam O’Connor said. “We are pleased to pay tribute to these outstanding companies for their focus on excellence and their exemplary participation in our global community.”

Macdonald Realty accepts 2016 Global Alliance Award in Miami

Jonathan Cooper, Alyssa Mori and Rosey Hudson of Macdonald Realty accept the 2016 Global Alliance Award.

 

Top 3 International Luxury Brokerages

Macdonald Realty was named one of the Top 3 International Luxury Brokerage by Luxury Portfolio International®. The award is presented to the firm based outside of the U.S. that epitomizes the quality, strength and luxury market expertise synonymous with the Luxury Portfolio brand.   Macdonald Realty was the only Canadian nominee, along with firms from South Africa and Italy.

Top 3 Consumer Materials and Video Marketing

Macdonald Realty was also recognized with top three finishes in two categories of the LeadingRE annual Marketing Competition.  The award-winning entries in the Consumer Materials and Video categories were chosen based on creativity, quality and overall presentation and effectiveness.

“It’s an honour for our marketing team to be recognized by LeadingRE, and in the company of outstanding firms from New York, Chicago and South Africa,” says Macdonald Realty’s Marketing Manager Rosey Hudson.  “It shows that the materials our in-house team produces are truly world class. Our new listing presentation is informative and beautiful, and is a tool that our agents should be very proud to share with prospective clients.”

2016 LeadingRE Awards for Macdonald Realty

 

Macdonald Realty, the residential division of Macdonald Real Estate Group, is the largest British Columbia representative of Leading Real Estate Companies of the World® (www.LeadingRE.com), an extensive network of premier locally-branded firms in more than 50 countries producing over one million annual home sale transactions. As a member of LeadingRE, Macdonald Realty provides a quality real estate experience, global marketing reach and access to top real estate professionals in any market.

For more information on Macdonald Realty, visit www.macrealty.com  or call 1-877-278-3888.

——————–

For comment please contact
Jonathan Cooper, Vice President, Operations
Macdonald Real Estate Group Inc.
Direct: 604-264-6789
Email:  jcooper@macrealty.com

About Macdonald Real Estate Group
Based in Vancouver, Canada, Macdonald Real Estate Group (MREG) has an annual sales volume of over $7 billion and over $2 billion in assets under management.  With more than 20 offices and nearly 1,000 staff and REALTORS®, MREG offers a full range of real estate services, including residential and commercial brokerage, property and strata management, project marketing, and the MREG Canadian Real Estate Investment Centre in Shanghai, China.  Macdonald Realty is the residential division of Macdonald Real Estate Group. For more information, visit www.macrealty.com.

 

Macdonald Realty CEO Lynn Hsu recognized in the 2016 Swanepoel Power 200 List

Macdonald Realty’s President and CEO Lynn Hsu has been included in the Swanepoel™ annual list of The Most Powerful People in Residential Real Estate for 2016.

Ms. Hsu’s acquisition of Macdonald Realty in 1990 coincided with Vancouver’s emergence as an Asian hub on the international stage. She has subsequently grown the firm to 20 offices throughout British Columbia (Canada) with nearly 1,000 agents responsible for an estimated $5 billion in annual sales.

Lynn Hsu, recognized for growing Macdonald Realty from one office in 1990 to 20 offices and nearly 1000 agents 25 years later, is listed as #105 for the Power 200. This is the overall SP200 list which identifies the 200 leaders that have the most power and influence to impact the residential real estate brokerage industry.

In addition Lynn Hsu ranks in the Top 20 on their Women Leaders list, along with Pam O’Connor of Leading Real Estate Companies of the World®, our global network of market-leading independent brokerages. We’re also happy to see Stephanie Pfeffer Anton of Luxury Portfolio International® and LeadingRE named #1 in the Top 20 Social Influencers of Residential Real Estate.  Our friend and colleague Paul Boomsma, President of Luxury Portfolio International® also made the Power 200 list.

View the complete 2016 Swanepoel Power 200 lists.

 

lynn_hsu_2015_preferred__normal

HGTV’s House Hunt Winner in Best International Home 2015: Timber Frame Home in Squamish

The HGTV House Hunt has finished and the votes are in. Congratulations to all the winners! Thank you to all who helped Macdonald Realty’s International Home nomination become the 2015 winner. Find out more about this amazing listing below on the HGTV House Hunt website:

Timber-Frame Home in Squamish

HGTV_4

This backyard view of the home shows off the pairing of stone and neutral siding that were used for the exterior. The landscape and hardscape includes a small pond and evergreen trees.

Special thanks to our luxury home marketing network partners at Luxury Portfolio International for coordinating our nomination.  What an honour!  Our Squamish listing won over fellow nominees from Queenstown New Zealand, Paris France, Marrakesh Morocco, Australia, South Africa, Mexico and other exotic global locations.

BC Real Estate is Front and Centre in Shanghai | BCBusiness with Dan Scarrow

Beyond Borders
Macdonald Realty’s Shanghai office is meeting the needs of its clients and bearing fruitful results

As seen in BCBusiness July 2015 issue.

As the demands of the BC real estate market change, realtors and their respective real estate agencies must react accordingly to stay in the game. For one agency, this meant thinking outside of the box and stepping out of its time zone.

When Macdonald Realty opened its office in Shanghai, China, last year, it was branded as “The Canadian Real Estate Investment Centre.” But Dan Scarrow, who manages the Shanghai office, says that his Chinese clients had their own words to describe it. Impressed with the office’s scope, they say that it covers “an entire dragon of services.”

Those services include residential resale, commercial sales and leasing, new development project marketing and property management. While American, Australian, New Zealand and European real estate companies had established offices in China, Macdonald Realty was the first company in China with a sole focus on Canadian real estate. The company decided to open the office as a response to their clients’ desire for better access to the Chinese market.

Scarrow is uniquely qualified to run the office. He has been working with Macdonald Realty for nearly 10 years, and has worked as an executive assistant for the CEO, and as a residential and a commercial agent. He is a born-and-bred Vancouverite, but he is half Taiwanese. “The upshot is that Mainland Chinese see me as a white Canadian, but I’m also able to communicate with them in Mandarin,” he says. “I guess you could say that, in China, I am an authoritative foreign curiosity and hence memorable.”

His company, says Scarrow, has several competitive advantages. “Our intimate knowledge of the market is what makes us uniquely valuable to investors here,” he says. “We are small enough to be agile, but big enough to provide a full range of brokerage, management and advisory services.”

Scarrow works with Chinese clients who are in the process of immigrating to Canada, with new Canadians and with pure investors. Those interested only in investment tend to look at new condos and commercial properties. “What resonates with investors in China is the perception of Canada as a safe and secure investment climate, in contrast with China’s robust, but volatile, environment,” says Scarrow.

In order to stand out in today’s highly competitive real estate market, Macdonald Realty has undertaken several innovative marketing strategies. As technology has made property information widely available to the public, Scarrow notes that the role of the real estate agent has shifted: from gatekeeper of information to interpreter and negotiator. To meet the demands of those roles, Macdonald Realty has been working with an outside training organization to offer all agents the exclusive Certified Negotiation Expert (CNE) designation. Macdonald Realty has also launched its own magazine called Macdonald Realty Luxury Homes, to help market its luxury home listings in Canada and in China. Produced by the company’s own in-house creative marketing team, the magazine has proven to be a hit.

But from his own experience, Scarrow says that the most important way for an agent to get ahead is to be a competent professional first. “Doing a fantastic job with one client will generate more long-term business than even the most successful email campaign,” he says. “Start with the people who know and trust you, do an unbelievable job for them and continue learning about how to be a professional from the good agents and managers around you.” Dan Scarrow manages Macdonald Realty’s Shanghai office sults just come a lot easier.”

This article was originally posted on BCBusiness, June 12th, 2015. 

danscarrowinshanghai__normal

Macdonald Realty Nominees for HGTV’s House Hunt 2015

The HGTV House Hunt is on once again! This year we are nominated under 3 categories, with 4 of our listings in beautiful BC. Tour amazing homes across the globe, vote for your favorites, and enter for your chance to win a $10,000 cash prize! And remember you can vote for your favorites once a day. Follow the instructions below to vote for Macdonald Realty Nominees for HGTV’s House Hunt 2015:

Step 1: Tour the homes in the category.
Step 2: When you’ve found your favorite, click “I’m Ready to Vote.”
Step 3: Choose your favorite by clicking “Vote.”
Step 4: Click “Continue to Next Category” to tour more homes.

Amazing Kitchens: Country Estate in Vancouver
HGTV_1

A mix of contemporary style and country charm brings this spacious, eat-in kitchen to life. Charcoal gray cabinets and gray stone countertops blend seamlessly together, while a gray and white chevron tile backsplash breaks up the monochromatic space. The large island pairs with country-style barstools to provide additional seating for dining. Click here to vote for this listing as your favorite Amazing Kitchen!

 

Privacy, Please: Luxe Chateau in Victoria
HGTV_2

Sprawling mountain views and a luxurious infinity-edge pool and spa, what’s not to love? Relax, unwind and take in the incredible views of the natural Fiord of Finlayson Arm and the Saanich Inlet. Click here to vote for this listing as your favorite Privacy, Please candidate!

 

Rustic Lodge in Chilko
HGTV_3

Located on 25 acres of deeded land with a private 10-acre lake, the Huston Family Estate offers an unparalleled atmosphere with breathtaking views of the majestic Chilko Valley. Click here to vote for this listing as your favorite Privacy, Please candidate!

 

Timber-Frame Home in Squamish

 

HGTV_4
This backyard view of the home shows off the pairing of stone and neutral siding that were used for the exterior. The landscape and hardscape includes a small pond and evergreen trees. Click here to vote for this listing as your favorite International Homes candidate!

 

Thank you to our global partners Luxury Portfolio International for bringing attention to our amazing collection of luxury homes listed across British Columbia by our Macdonald Realty agents.

Macdonald Realty Recognized for Outstanding Referral Services

Macdonald Realty was Recognized for Outstanding Referral Services

Macdonald Realty received the prestigious Global Alliance Award for the Most Outgoing Cross Border referrals from Leading Real Estate Companies of the World® (LeadingRE), a global network of more than 500 top independent real estate firms. The award was presented at the network’s Annual Awards Gala this spring during LeadingRE Conference Week in Las Vegas.  This was Macdonald Realty’s third consecutive year winning this award, showcasing our position as a local BC company with strong international connections.

Also, in the Marketing category Macdonald Realty received honorable mentions for their 2014 Corporate Brochure of Integrated Real Estate Services and their 2014 Recruitment Video in the Interactive Media / Video category.

“An innovative and creative approach to marketing is critical for success in today’s real estate market. Our award-winning firms have distinguished themselves by conveying their firms’ unique character, while providing essential information to home buyers and sellers.”

Macdonald Realty is the sole Vancouver representative of LeadingRE (www.LeadingRE.com), the largest network of premier locally-branded firms in more than 50 countries. LeadingRE provides its affiliates with an extensive range of brokerage services, which include lead generation, cross-market referrals, branding support, luxury marketing, online exposure, technology systems, and industry-leading professional development.

For more information on placing a referral with our award winning referral team, please email relocation@macrealty.com or call 1-877-278-3888.

leadingre_award_2015_(1)__normal

Vancouver firm offers a one-stop real estate shop for Chinese investors in B.C. | The Vancouver Sun


dan_scarrow
When Vancouver-based Macdonald Realty dispatched Dan Scarrow, the agency’s vice-president of corporate strategy, to China last March to investigate the feasibility of launching a branch office in Shanghai, the assignment was initially only going to be for four months.

A year later, Scarrow, a second-generation Chinese Canadian who is fluent in Mandarin, is still there. The Vancouver Sun reached Scarrow in Shanghai by phone last week to discuss his progress, objectives and challenges in building a bridge for residential and commercial real estate investment between China and British Columbia as the new managing director of Macdonald Realty’s Canadian Real Estate Investment Centre in Shanghai.

Q When you first were dispatched to Shanghai at this time last year, it was for a four-month assignment to investigate opening up a Macdonald Realty branch in China. Why are you still there?

A We actually have ended up opening up an office here. We have a representative office over here in Shanghai now doing project marketing and commercial and residential prospecting for our Vancouver and British Columbia offices. We’ve branded it as the Canadian Real Estate Investment Centre, so it’s offering a one-stop shop for Chinese investors looking toward anything to do with Canadian real estate, specifically B.C.

Q Why did Macdonald Realty want a presence in China?

A It was sort of two-fold. The first one is that Chinese investors are becoming a bigger and bigger part of our market — both on the residential side and the commercial side. And after our investigation over here we found that there are no other Canadian [real estate] companies over here in China that actively do this, so we would be the first one.

Q What’s been the biggest adjustment living in China for you personally?

A Shanghai is a pretty easy city for an expat to get used to. I think that the rest of China would be a much more difficult adjustment, but Shanghai itself is a pretty cosmopolitan city with a pretty global outlook and a pretty robust expat community. So it’s not as difficult. The challenge, I guess, that everyone talks about is the pollution aspect. They talk about it here the same way Vancouverites talk about the rain.

Q What’s your mandate in terms of building links between commercial real estate in B.C. and the Chinese market?

A Our main mandate is to promote B.C. commercial properties over here in China. I think we all acknowledge that China has been growing. It has created the fastest-growing wealthy and middle class in human history, so tapping into that market I think is going to be increasingly important for Canada and Canadian companies over the next decades.

Q What’s the most common question you hear from Chinese clients interested in investing in British Columbia’s commercial real estate?

A The most common question actually isn’t about real estate. It’s with what is happening in immigration. The biggest question is what is Canada’s current immigration policy and what will it be moving forward, just because there have been so many changes to Canada’s immigration policy in the last few years, and I think everyone is a little bit confused as to what it will be moving forward.

Q Any unwelcome surprises or challenges doing real estate business in China?

A Not really. It’s been interesting in the last year because there were the big changes to the immigration program — the investor immigrant program in the middle of last year and continuing until today. And also with the collapse of oil prices and the subsequent drop in the Canadian dollar. That’s been another thing we’ve had to deal with, but more in a positive sense from our investors’ point of view because now Canada’s real estate market is seen as even cheaper than it was prior to that change.

Q In a blog post last year you wrote that wealthy clients in China are more interested in placing their children and a portion of their wealth outside of China than they are in immigrating themselves. Why do you think that’s the case, if it still is the case?

A It still is the case. If you’re a wealthy Chinese individual it’s likely because you have a large business still in China. China does not recognize dual citizenship and it’s just more difficult for you to actively operate your business without Chinese citizenship. So a lot of people, they’re not willing to give up their business so they’re not willing to give up their Chinese passport either.

Q Which areas of Vancouver’s commercial real estate market are your Chinese clients eager to get involved in?

A For a lot of our clients it’s hotels. But it’s an education process as well, letting them know which asset classes are involved or available in B.C. Hotel investment is more of an active business, so while we have a lot of hotel operator clients who are interested in buying hotels, if they don’t have that kind of experience we like to talk to them about some of the other opportunities that might be available. Some of the hotter ones would be street-front retail with redevelopment potential. That goes very quickly for us. We probably have 15 very serious-type buyers that would snap up products like that immediately, but we can’t find enough product for them. It’s a lot of investment-type product that has income right now but has development potential in five to 10 years.

Q What’s the next step for your operations in China?

A Right now we’re working with a couple of developers to promote their projects over here [in China] and so we’re doing project marketing and then also working with our residential agents to make sure the listings that we have are exposed to the widest possible audience. And finally — obviously — exposure of the commercial real estate realm. I think that’s really the big push right now. A lot of investors have already bought a home for themselves in Vancouver and they’re looking for ways to diversify their investment portfolio in Canada, and really the promotion of the commercial real estate, and the education of those buyers, is our next step.

 

This article was originally posted on The Vancouver Sun, February 24th, 2015.  Written by Evan Duggan.

The Impact of Asian Investors in Vancouver | Globe and Mail & BNN

Macdonald Realty is mentioned several times in a Globe and Mail article published this morning on the impact of Asian investors on the Vancouver housing market.  See a repost of the full report below including comments from Dan Scarrow, VP of Corporate Strategy for Macdonald Real Estate Group.

Infographic_-_The_China_Factor_in_Vancouver_Real_Estate

 

This Globe and Mail article lead to a mid-day live TV interview on the Business News Network, featuring Tony Letvinchuk, the managing director of Macdonald Commercial Real Estate ServicesClick here to watch the interview.

 

Vancouver housing data reveal Chinese connection

One of the largest real estate companies in British Columbia says that more than one-third of all the single-family detached homes it sold last year went to people with ties to mainland China.

Macdonald Realty Ltd., which has over 1,000 agents and staff in B.C., said 33.5 per cent of the 531 single family homes sold by its Vancouver offices in 2013 went to people who the company said were a mix of recent immigrants and Canadian citizens.

Those buyers, the company added, tended to spend more money, too, with the average cost of a house sold to these clients topping $2-million, compared to $1.4-million on average overall.

The figures did not include Macdonald’s sales in suburban areas such as Richmond, Burnaby or North Vancouver.

“This is our snapshot of Vancouver,” says Dan Scarrow, vice-president of corporate strategy at Macdonald Realty.

The information is based on reports from the firm’s sales, anecdotes from its agents and Mr. Scarrow’s own experience working with mainland Chinese clients, and it’s a glimpse into the influence of mainland Chinese money on Vancouver’s real estate market, which is considered among the most expensive in North America.

Vancouver has been flooded in recent years by tens of thousands of investor-class immigrants from mainland China, who have seen the west coast city as a stable – and picturesque – place to park their capital in luxury property.

That has helped drive up the average price of a single-family home in Vancouver to around $1.2-million.

Mr. Scarrow, who noted the firm does not query buyers about immigration status, believes that investment flowing from mainland China into Vancouver real estate is a quantifiable phenomenon, but has not personally seen much of the more controversial type of buyer: Those from abroad who buy for investment purposes but never live in the city. “We still see very few pure investors from China who have no connection to Vancouver,” he says.

Getting a handle on foreign buyers is difficult and Macdonald’s survey is far from exact – though one major property developer in Richmond said “that sounds about right.” The federal government does not collect meaningful data on the number of foreign buyers purchasing Canadian real estate, leaving industry participants to debate the impact of foreign capital on the local market. And that debate has gotten heated recently, with some developers accusing others of racism and criticizing those who want to slap curbs on foreign investment. The issue is complicated by the fact that some of Vancouver’s ethnically Chinese-Canadian citizens with ties to Hong Kong view newer immigrants from mainland China with a degree of suspicion, assuming their wealth might have been accumulated in part by proximity to China’s Communist Party, rather than in a free market with the rule of law like Hong Kong.

The lack of hard data has also complicated discussions about the city’s affordability crisis and fuelled a local cottage industry where analysts attempt to decipher the scope of foreign money by looking at things like electricity usage in downtown neighbourhoods where some suspect foreign buyers have bought condos in which they never live.

“People always say there are no stats. Well, here are the stats,” says Mr. Scarrow. “This is actual evidence.”

There have been some reports and statistics about the scale of foreign money in Vancouver real estate before, but few have been conclusive – and none have settled the debate. One Sotheby’s report based on a survey of its agents found that 40 per cent of the luxury properties it sold in Vancouver were to foreign buyers – but not all of them were from China. Many developers trying to downplay fears about Chinese investment cite a statistic showing that only 1 to 3 per cent of Vancouver real estate purchases are “foreign” buyers – but, as is the case with Macdonald’s sales, many more expensive homes are still sold to people based here but who have come, at some point, from mainland China. A 2011 study by Landcor Data showed that 74 per cent of luxury purchases in Richmond and Vancouver’s expensive west side were by buyers with mainland Chinese names.

Mr. Scarrow says his company is “indicative of the overall market,” since his firm has some real estate agents who target overseas Chinese buyers, but is also firmly oriented toward domestic sales, unlike other real estate firms that deliberately target Chinese buyers.

At the same time, Mr. Scarrow and Macdonald are so bullish on the potential for Chinese investment that he is spearheading the company’s efforts to open an office in China. “While there is very little data about foreign investors in Vancouver real estate, our own internal data is enough for us to commit to investing in a representative office in Shanghai,” said Mr. Scarrow, whose mother Lynn Hsu, who came from Taiwan in 1979, is the majority owner and president of Macdonald.

Others remain unconvinced – not about whether there is an influx of Chinese money, but whether the flow of foreign capital will continue unabated.

Richard Kurland, a Vancouver immigration lawyer who works with wealthy Chinese immigrants, believes Vancouver may see a slowdown in foreign investment. He said some wealthy Chinese buyers might get anxious and sell off second properties because of the current crackdown on corruption in China.

In meetings with top real estate agents earlier this year, Mr. Kurland predicted that luxury residential real estate could drop in value by as much as 25 per cent as foreign investment dips. As evidence, he points to July real estate figures that showed 106 homes for sale on the west side in the $3-million to $3.5-million price bracket, and just nine sales, compared to 73 active listings and seven sales during July of 2013.

Originally published by The Globe and Mail on Friday, August 22, 2014.  Written by IAIN MARLOW.

Macdonald Realty-LeadingRE #1 Network in North America | REAL Trends 2014

Macdonald Realty is a proud member of the Leading Real Estate Companies of the World ® (LeadingRE), a global affiliate network of independent real estate firms. We are pleased to announce that two years in a row, Macdonald Realty-LeadingRE is the number one selling network (by unit sales) in North America – more than Remax, Keller Williams, Coldwell Banker, and other well known real estate brokerages.

In addition, Macdonald Realty has continued to be consistently strong in the rankings for the REAL Trends 250 Survey, placing in the Top 10 of the Largest Brokers in Canada and Top 5 of Independent Brokers in Canada.

REAL Trends is a company based in Denver Colorado that has been ranking the Top 500 American residential brokerages since 1988 and has been ranking Canadian brokerages since 2009.


2014_RealTrends250_SocialMedia
2014_RealTrends_LeadingRE

Dispatches from China: The logistics of opening an office in China by Dan Scarrow


112
Dispatches-from-China
I’m now in month 2 of a 4-month long assignment looking into the logistics of opening a Macdonald Realty representative office in China.

To recap, we have gone to China as a response to demand from our clients. We determined early on that we’re likely the only brokerage in BC that’s capable of supporting an economically feasible office in China due to our multiple lines of business: Residential Brokerage, Commercial Sales, Project Marketing for Developers, Property Management and Mortgage Financing. Having one or two of these capabilities would not be enough to sustain an office in China, but having all 4 means that Macdonald Realty and its affiliated companies – Macdonald Commercial, Property Management, and Platinum Project Marketing – can make it work.

In the first month after our arrival, the unexpected changes to the Canadian Investor Immigrant Program had a lot of people scrambling, trying to figure out what the impact would be for the Vancouver housing market. I must admit that I’ve changed my mind about how big the impact would be from Large to Minimal. The reason, as explained by some of our Immigration Consulting partners here in China, is that their wealthy clients are more interested in placing their children and a portion of their wealth outside of China than they are in immigrating themselves. Canada offers a perfect solution for this through student visas for children and an accompanying 10-year multiple entry visa for adults. These immigration consultant partners are fairly confident that many of their clients will choose this route and continue to invest in Canada and British Columbian residential and commercial real estate.

Another issue that we’ve had to deal with is representative fraud. This is something that is quite common and widespread in China and only recently has it made its way over to Canada. We have now verified 3 cases of individuals who have fraudulently claimed to be the Canadian representative of a company in China, and we have several other suspicious incidences to follow up on. The cases seem to follow the same pattern: an individual claims to be the representative of a large Chinese company, he/she knows a lot about the company or a decision-maker in the company but most of the information can be found online, and the individual tells us not to contact the decision-maker back in China because they are ‘very busy’. Through the BC Trade Office here in China, I’ve been able to get a hold of the Chairmen of several of these companies and most of them (though not all) have denied having any sort of official representation in Canada. This is just another area where having ‘boots on the ground’ can help.

Moving forward, this month’s task is to determine and solve the logistical, legal, and administrative challenges of opening an office in China. This is one of the biggest hurdles for Canadian companies and is one of the main reasons why so few have set up shop in the country.

As an aside, I recently made a side-trip to Taiwan to learn about the state of the Taipei real estate market. Much to my surprise, I found that housing prices in Taipei are much higher than in Vancouver and their wages are significantly lower. This goes to the heart of the paradox that we’ve been faced with in this business for several years now: Vancouver house prices, wages, and housing affordability. The oft-cited Demographia study is often twisted in Vancouver headlines as being a study of all markets around the world, when in actuality it only covers 9 (mostly western) countries. It explains the paradox of why Canadians often think that Vancouver is so expensive while our Chinese clients continually tell us how cheap Vancouver is. I certainly can’t explain to you how the economics of Taipei’s real estate market work, I can only tell you that they do. And if Vancouver is the most Asian city outside of Asia, it certainly lends credibility to the theory that Vancouver house prices may still have some room to grow.

Regards,

Dan Scarrow
VP Corporate Strategy
Macdonald Real Estate Group

Dispatches from China
Dan Scarrow is Vice President of Corporate Strategy at Macdonald Realty.  A second generation Chinese Canadian with fluency in Mandarin, Dan will be spending several months in Shanghai investigating the opportunity to open a Macdonald Realty rep office in China.  Dan will be sending monthly dispatches with stories from his experiences in Shanghai.

Based in Vancouver, British Columbia, Macdonald Realty has 20 offices and 1,000 staff and Realtors, and offers a full range of real estate services across the province, including residential and commercial brokerage, property and strata management, and project marketing.

For more information contact Macdonald Realty at 1-877-278-3888

Macdonald Realty Wins “Most Outgoing International Referral Closings” Award

We are pleased to announce that for the second year in a row Global Alliance Award for “Most Outgoing International Referral Closings” by Leading Real Estate Companies of the World. Being up against 500+ Leading Real Estate members with over 120,000 sales associate in 40+ countries around the world this is a significant achievement for our Referral Department.

Congratulations to Macdonald Real Estate Group Referral Department for a job well done!

_BP_6250

Thank you to Jonathan Cooper for accepting the award!

For more information on the Referral program or to place an outgoing referral please contact our award winning team at 1-877-278-3888.

What Changes to Immigrant Investor Program Means for Vancouver Real Estate | by Dan Scarrow, Macdonald Realty

112

Last month, Canada announced the cancellation of the Immigrant Investor Program along with its 65,000 applicant backlog. Some analysts have predicted that this will have a negative effect on our housing market and the media has picked up on this sensationalist narrative. We here at Macdonald Realty have been following the situation closely as there is certainly some merit to the theories that these analysts have.

To start, the immigration investor program was introduced in mid 1980s by the federal government to promote the immigration of business people and their families. Quebec subsequently negotiated with the federal government to have its own, parallel program. The investor program enables qualified investors to obtain permanent resident status in Canada and are then eligible to obtain Canadian citizenship after residing in Canada for a number of years. To be qualified for this program (prior to the cancellation), applicants needed to have at least two (2) years of business management experience, have minimum net worth of CDN$1,600,000 and make an investment of CDN$800,000 (interest free loan to the government for 5 years), and meet certain health and security requirements. The federal government admitted about 2500 families per year (with Quebec admitting a similar number) under this program. For the past 8 years the main source of investor applicants are multi-millionaires business people from China and most of these immigrants purchased properties in some of Macdonald Realty’s market areas.

But let’s put some things in perspective first:

  1. In the most recent set of data available (2012), Canada admitted 257,887 immigrants
  2. Of these 257,887 people, 2,616 families, representing 9,350 people, entered via the Immigrant Investor category (3.6%)
  3. Quebec continues to run a parallel Investor Immigrant category that (as of now) continues to process applicants at roughly the same number as the now-discontinued Federal Program (roughly 2,500 families/year)
  4. Canada now has a 10-year, multiple entry VISA that many immigrants in the queue may find even more attractive than citizenship
  5. Canada has announced that they will be replacing the discontinued program with a new one (but apparently not the Quebec one), although details have yet to be announced

So if that’s it, why all of the fuss?

  1. The vast majority of applicants in this category were from mainland China and have large fortunes
  2. The majority of these applicants were likely planning on residing in the Lower Mainland, specifically Richmond, West Vancouver, and the Westside of Vancouver
  3. Most of these applicants would have (or already have) bought a substantial house/condo in these areas
  4. If, for example, 2,000 families each buy a $1 million house, that’s $2 billion in foregone investment in a relatively small market area. Every year.

So on the face of it, it seems as though there is certainly the potential for a correction, but remember, this is foregone FUTURE investment. The money that has already entered the housing market will likely stay here. If there were rampant speculation happening in the lead up to this announcement, we would be worried, but our data shows that speculation has been at a relative low point for several years now after a flurry from 2008 – 2010.

The key question that everyone is trying to answer is how will this impact the housing market moving forward.

The reaction of our immigration consultant contacts in China has been surprisingly muted. Most have already diversified away from Canada and are now focused on the US immigration programs, although they say that, all things being equal, Canada (meaning Greater Vancouver) is still a preferred destination. Some of their clients who were in the Federal Program queue had, because of the long processing times, already given up on Canada and applied to other countries anyway. Others, whose hearts are set on Canada, may find different, admittedly constrained, methods to immigrate (the British Columbia “Provincial Nominee Program, as “international students” for children, 10-year multiple-entry visas, or the revamped federal investor program).  Surprisingly, few China-based immigration consultants express much concern about Vancouver’s housing market.

Our view therefore is that, while there will certainly be some affect from these changes, they will be only another variable in a host of factors that affect BC’s housing market.

This view is shared by others, including respected immigration lawyer, Dave Thomas:

“Will this affect the Vancouver real estate market?

I don’t believe it will.  Firstly, the Investor program has effectively been closed for almost 3 years now.  Quebec also has an Investor program but it had drastically limited its intake of new files.  So even though the immigration route has slowed, we have not seen the slowdown in the movement of capital out of China.  There are more “Chinese push reasons” than “Vancouver pull reason” for that capital to make its way here, regardless of current immigration programs.

Historically, the business immigration programs for “wealthy immigrants” only made up about 2-3% of the total number of immigrants coming to Canada each year. Admittedly, their presence in places like Vancouver was more apparent, especially when it came to high end real estate.

There are other ways to come into Canada. Younger people are coming as students, and then availing themselves of post-graduation work permits that lead to permanent residence.  Younger people with good English language skills and a job offer will have a good chance.

One negative trend, certainly, is that older immigrants with limited English skills will have more difficulty in immigrating to Canada, no matter how much money they have.”

immigration_infographic_ver2__normal

Dispatches from China by Dan Scarrow


Dispatches-from-China
Greetings from China.

As explained in the Globe and Mail, I have been in Shanghai for nearly a month to explore the feasibility of opening a Macdonald Realty rep office in China. For the past few years, we have received consistent feedback from our clients asking us how they can access the Chinese market. This is our response to customer demand. Our firm has a large residential presence, along with a separate property management and commercial brokerage division, and a project marketing division so our office in China would look for investors in all three areas: residential resale, commercial properties, and new home construction. We’ve received considerable feedback from homeowners, commercial property owners, and developers who all wish to market their properties in China to Chinese buyers.

I believe we are uniquely positioned to attract investment back to BC because of:

  1. Our focus on this province
  2. The fact that we are BC’s only truly full service corporate real estate company
  3. Our knowledge of the Chinese market

Because our focus is on British Columbia, the goal of our Chinese rep office is to encourage investment back into British Columbia so our clients can be assured that they receive the widest exposure to potential buyers, be it residential, commercial, business, or new construction. Some of Vancouver commercial firms have licenced affiliations with Chinese offices, but the focus of those offices is on building business for China, not Western Canada.

A Chinese rep office is only viable because we are a truly full service corporate real estate company. A few larger local developers have some presence in China, but their focus has been solely their own projects and the results have been decidedly mixed. Our hope is that by combining all of our lines-of-business we will be able to provide the one-stop-shop for investors to look into all British Columbia real estate.

Finally, Macdonald Realty and its affiliated companies have an unparalleled knowledge of the Chinese market. Our owner, President and CEO Lynn Hsu is a first-generation Chinese Canadian who has already accrued a hefty list of Canadian business accolades. I was sent back to China to explore the possibility of an office because of my relative fluency in Mandarin and my cultural understanding from growing up in a mixed Chinese-Canadian household. As a company, we’ve been very successful at luring investment into BC from top Chinese companies and businesspeople, partly because a number of our company’s key staff have in-depth knowledge of BC real estate products and who can speak comfortably to these investors in their own language.

On a more personal note, China has been every bit as interesting as I thought it would be. I’ve been in Shanghai for most of the time I’ve been here, but I expect to go to a few secondary and tertiary cities in the near future (Beijing, Guangzhou, Chongqing, Hangzhou, and Qingdao are on my to-do list). The pollution has been noticeable, but not terrible so far. I’ve heard reports that recently Beijing and other northern cities have experienced terrible smog, but I haven’t been restricted in my movements thus far. That said, you can definitely see the difference between an Air Quality Index 50 day vs. 250 day:


Shanghai_smog_photo
For those who have never been, Shanghai is an extraordinary place that is relatively friendly to tourists. It’s transportation system is incredible, with the Metro alone moving 2.5 billion people annually. Rush hour is a sight to behold, both due to the sheer number of people moving through the system as well as how efficiently it does so. While the city is enormous, the main downtown area is quite manageable. I liken it to New York City: if you ever wanted to explore the whole metro area, it would take you forever, but Manhattan can be understood in only a few days. Same thing with Shanghai. A word of caution though, this area of Shanghai is not at all representative of China. As one expat told me: “Living is Shanghai is really fun, but if we were living in any other city in China, we wouldn’t last very long.”

I suppose that’s why they all want to come to Canada.

My plan is to be in China until the end of May, and I look forward to giving you updates of our progress.

Regards,

Dan Scarrow
VP Corporate Strategy
Macdonald Realty

112

Dispatches from China
Dan Scarrow is Vice President of Corporate Strategy at Macdonald Realty.  A second generation Chinese Canadian with fluency in Mandarin, Dan will be spending several months in Shanghai investigating the opportunity to open a Macdonald Realty rep office in China.  Dan will be sending monthly dispatches with stories from his experiences in Shanghai.

Based in Vancouver, British Columbia, Macdonald Realty has 20 offices and 1,000 staff and Realtors, and offers a full range of real estate services across the province, including residential and commercial brokerage, property and strata management, and project marketing.

For more information contact Macdonald Realty at 1-877-278-3888

Macdonald Realty looks for luxury buyers in China | The Globe and Mail

Sales of high-end properties are on the upswing in the Vancouver region, spurring one of British Columbia’s leading real estate firms to search for wealthy buyers by setting up shop in China.

Dan Scarrow, vice-president of corporate strategy at Macdonald Realty Ltd., said he has heard enough anecdotal evidence of well-heeled home buyers with roots in China to make it worthwhile to invest in a Shanghai office.

In February, Mr. Scarrow will start the first of two three-month assignments in 2014 in Shanghai. After his fact-finding mission, he plans to hire Mandarin-speaking staff in China to keep the overseas branch office going.

While real estate experts have estimated the proportion of foreign buyers in the Vancouver region’s housing market at only 1 to 3 per cent, Mr. Scarrow said if the statistics were to include recent immigrants with origins in China, the influence of rich Chinese buyers would be greater, especially on single-family detached homes in pockets of Vancouver’s West Side.

Most high-end transactions occur on Vancouver’s West Side and the Municipality of West Vancouver. In the luxury market, there were 644 properties that sold for $3-million or higher in the Vancouver area last year, up 47 per cent from 439 homes that traded hands in 2012, according to data compiled by Macdonald Realty. Of homes that sold last year, there were 148 that fetched at least $5-million, compared with 107 sales in that category in 2012.

Mr. Scarrow said it is hard to determine how many of those elite sales went to recent immigrants from China, noting that the ripple effect due to an influx of new money can easily be exaggerated. Still, he believes the proportion was significantly higher than 3 per cent last year.

“There isn’t this wave of offshore investors with no ties to Canada who are coming in to buy, but the genesis of their wealth is from mainland China,” said Mr. Scarrow, a Canadian who speaks Mandarin fluently. “Most of these people land in Canada first as investor-class immigrants.”

He dismisses tales circulating of wealthy offshore buyers snapping up Vancouver properties sight unseen as false, emphasizing that he will instead seek to nurture a market in which China-Canada family ties are crucial.

The 30-year-old Mr. Scarrow said that as a product of a mixed-race marriage, he is acutely aware that the issue of foreign shoppers is a sensitive one in British Columbia. “The perception among some sellers is that mainland Chinese money is driving the luxury real estate market here,” he said.

But Mr. Scarrow cautions homeowners against hiring real estate agents based only on ethnicity, stressing that the best representatives know Vancouver’s neighbourhoods well, no matter what their race.

Mr. Scarrow’s mother, Lynn Hsu, moved in 1979 from Taiwan to Vancouver. Ms. Hsu is the president and majority owner of Macdonald Realty, which has more than 1,000 real estate agents and staff across British Columbia. Her ex-husband, Peter Scarrow, is a lawyer who has worked in Asia for the past dozen years, including advising wealthy Chinese on Canadian immigration and tax rules.

Dan Scarrow said there will be opportunities to tap into the Chinese market during his stay in Shanghai. Besides seeking contacts who are interested in single-family residential properties, he will be on the lookout for investors in Vancouver’s commercial real estate market and also new condo projects.

Benchmark index prices, which strip out the most expensive properties, have jumped 17.3 per cent to $2.1-million for single-family detached houses over the past three years on the city’s West Side, according to the Real Estate Board of Greater Vancouver. By contrast, West Side prices have risen only 4 per cent for townhouses and 3.5 per cent for condos over the same period.

This article was originally posted on The Globe and Mail, Jan 19, 2014.  Written by Brent Jang.

housing-vancouver-smallhole__normal

Macdonald Realty Awarded at the 2013 LeadingRE Annual Conference

We are pleased to announce that Macdonald Real Estate Group won the Global Alliance Award for Most Outgoing Referrals presented by Leading Real Estate Companies of the World® (LeadingRE). It is a significant achievement for our Referral Department as this year we were up against 600+ LeadingRE members with over 140,000 sales associate in 30+ countries around the world.

Congratulations to Macdonald Real Estate Group’s Referral Department for a job well done!

For more information on the Referral program or to place an outgoing referral in over 30 countries, please contact us at 1-877-278-3888.

Why Macdonald Realty is exploring opening an office in Shanghai, China | Inman

After 70 years in business in British Columbia, and much consideration and analysis, Macdonald Real Estate Group has decided to explore opening an office in China. To that end, my colleague, Dan Scarrow, our vice president of corporate strategy, left for Shanghai early in February.

In order to understand our rationale, it is first important to appreciate how Chinese investors have shaped the real estate market in Vancouver, B.C., where our company is headquartered.

Over the past three decades, Macdonald Real Estate Group has assisted thousands of Asian families and investors in real estate transactions in the Vancouver area and across western Canada. In the 1980s and ’90s, there were overlapping waves of Hong Kong and Taiwanese investment, and more recently we have seen the mainland China wave.

Our experience has given us the chance to develop a sizable network of Asian clients, both commercial and residential.

While the official percentage of foreign buyers in the Vancouver area is around 3 percent, Chinese clients make up a much higher proportion of certain segments of the market. The exact percentage is hard to pin down, but our research would indicate that Chinese families account for at least 50 percent of Vancouver home sales over $3 million, and our commercial division has put together dozens of major transactions with Chinese investors on a range of commercial real estate asset classes.

Asian clients are not arbitrarily choosing Vancouver as a destination for real estate investment. Our Chinese clients generally have close family and business ties to the areas in which they invest.

For example, aside from business considerations, the primary factor in shaping immigration-related real estate decisions for Chinese families will be proximity and availability of educational opportunities for the next generation.

Aside from business considerations, the primary factor in shaping immigration-related real estate decisions for Chinese families is educational opportunities for the next generation.””
That said, these clients often maintain a foothold in their country of origin, where they often have ongoing commercial interests.

If we open an office in Shanghai, we will be better able to serve our clients who are based in China, or who those spend significant time there. They will have somewhere to go to review documents, and get insight on real estate issues.

In addition, having a presence in China will give us another channel for promoting real estate opportunities.

I will be providing periodic updates to Inman as we go through our due diligence in Shanghai. Hopefully you can find something in our experience that is useful to you in your business, or at the very least you can enjoy watching the process unfold.

Jonathan Cooper is vice president of operations at Macdonald Real Estate Group (MREG). Based in Vancouver, British Columbia, MREG has 20 offices and 1,000 staff and Realtors, and offers a full range of real estate services across the province, including residential and commercial brokerage, property and strata management, and project marketing.

This article was originally posted on Inman News, Feb 21, 2014.
View the original post at Inman News

For more information contact Macdonald Realty at 1-877-278-3888

Chinese Love Affair with Canada continues | South China Morning Post with Dan Scarrow

Love can blind us to traits others may see as red flags. The Chinese love Canada and it seems even an uncertain performance in the property sector cannot dampen their ardour.

While Canada has fared better of late than its southern neighbour, the United States, its property market has not always reflected that. At times “red hot”, at others lacklustre, buyer activity has been up and down amid worries that external economic forces that could stunt the country’s growth. In its Emerging Trends in Real Estate 2011 survey, PricewaterhouseCoopers (PwC) notes that, even in Toronto, a city with an “impenetrable financial sector, diverse manufacturing industries and immigration flows supporting growth and intensifying tenant demand”, some investors still worry about flattening apartment rentals.

Vancouver’s office and condo markets remain “red hot”, fuelled by international visitors who bought after last year’s Winter Olympics. Yet the PwC report finds that despite the inherent attractions of the city, some investors are uneasy. Says one: “The market is artificially inflated: it’s been hot for too long.”

Market inconsistencies are also reflected in Canada’s Scotiabank Global Real Estate Trends report, which notes that Canada had one of the better performing housing markets among advanced nations last year, but also one of the most volatile.

An “unusually active” winter and spring were followed by an unusually soft summer. Pricing has mirrored demand, the market gaining 16.6 per cent year-in-year in the first quarter, and declining by 1.5 per cent in the third quarter. The bank hedges its bets on Canada, declaring it is “neither overtly optimistic nor pessimistic” in its outlook for this year. It expects interest rates will remain at historically low levels – an “extremely powerful inducement” for buyers. Demand will likely be tempered by more moderate employment and income growth as government restraint takes hold.

Scotiabank is projecting “a fairly lacklustre year” for residential housing. That doesn’t seem to worry the stream of buyers from the mainland and Hong Kong who call Canada their second home. Vancouver-based Dan Scarrow, vice-president of strategy at Macdonald Real Estate Group, says Chinese – mainly from the mainland – are the largest players in the luxury market, where they’re out-bidding the locals at “a ferocious rate”.

In the months before he moved out of sales to focus on management early last year, Scarrow sold 12 C$5 million-plus (HK$39.21 million) condos and multiple C$3 million-plus homes, mostly to mainlanders, but also to buyers from Taiwan, Hong Kong and local Canadians.

“The market in Vancouver for Chinese buyers is extremely hot,” says Scarrow, a Putonghua speaker who is half-Chinese. “It’s a top destination for wealthy mainlanders looking to emigrate from China and, when they land, many immediately look to purchase a principle residence.”

He says wealthy Chinese tend to be more comfortable with real estate as an investment. “Because of the language barrier, many of my clients are less comfortable with putting their investment dollars into financial products or services they do not understand, or know what the risks are. With real estate, they get to see something tangible.

“They are willing to put a greater weighting of their portfolio into real estate. In the wealthier areas, Chinese buyers are consistently out-competing locals for properties. Our research indicates that on the wealthier West Side of Vancouver, 78 per cent of homes of more than C$2 million were sold to Chinese buyers in 2010.” Scarrow says the Vancouver market continues to be strong. “Canada is in the strongest fiscal position of any country in the G8 and has an over-abundance of natural resources to feed its economy in the 21st century,” he says. “Vancouver may be the best-positioned city in the world.”

Stu Bell, of Prudential Sussex Realty West Vancouver, says: “Home buyers coming from [the] mainland and Hong Kong have intensified in the past six months and boosted home prices by up to 46 per cent in the past two years.”

They come because it’s “the best city in the world,” he says. “The buzz for Vancouver must be experienced firsthand to truly appreciate. In winter, gorgeous snow-capped mountains tower over the Northshore, and in summer the beaches and marinas are flooded with activity. Fine restaurants, excellent shopping, world-class outdoor activities, such as golf, skiing and boating and a thriving city centre filled with entertainment, keeps Vancouverites active.”

Bell agrees West Side is “the hottest real estate in Vancouver”, and one most popular among overseas Chinese. Buyers on property-hunting tours will often buy multiple properties with cash, Bell says. Here, the average price of a detached home is C$1.7 million, up 46 per cent from January 2009.

 

Source:  SOUTH CHINA MORNING POST, SPECIAL REPORT by Peta Tomlinson

Vancouver Real Estate Supply and Demand in a Global Context

Were we spoiled by the early spring flurry?   Probably.

Does the inventory have to decline at the same rate as the number of units sold to maintain market integrity?  Probably not.

The market appears to be levelling.  Prices are adjusting slightly downward but not in all areas depending on inventory.  Once again proving that one of our principle rules of real estate analysis is “supply and demand” and that rule is absolute.  Inventory is declining and prices may be stabilizing but perhaps not at the same rate.  Buyers and sellers are having trouble reading the market signs.

With the stock markets and the economies of USA, Europe and others regions all are emitting mixed signals, it is hard to pick a cause or effect that has any long term significance.  This brings to mind our second rule of analysis, that of “cause and effect”.  Good things cause good things to happen and bad things cause bad things to happen.  One day consumer confidence is good then the next day builders confidence is down then business leaders are optimistic then Ben Bernanke says he won’t intervene, and then he will.  The stock market goes down and then recovers.  The bank of Canada says interest rates will rise then when they do the banks ignore and keep offering low mortgage rates.  Nobody knows what is to do and nobody can predict how the various markets will react and that I guess is why they call it a market.

 

Today, according to the Conference Board of Canada, consumer confidence in BC is down.  Experts say this is the result of the implementation of HST.  We would guess it is a combination of many factors and externalities.  Although we must admit we have seen a lot of confusion as to the HST and Real Estate.  No doubt our industry could of done a better job of educating the public.  But so could have the government and the fifth estate (who spent a lot of time creating a kafuffle to sell papers rather than explaining the tax).

Throw in our last rule of real estate analysis, that ”history repeats itself” and it gets even more confusing. As we have noted previously, and our friend Bruno recently calculated, that after the last big real estate correction in Vancouver, it took 7 years (from 1996-2003) for prices of West Side detached houses to recover to the previous high .The following 6 years (from 2003 – 2009) saw a compounded average growth of 13% for Westside detached houses. Then in the last three quarters of 2008 and first quarter of 2009 we experienced a 20% plus downward correction but then were fully recovered by the fall of 2009.  Anybody heard of the “dead cat bounce”?

Prices seem to have corrected downward over the past few months by 5%-10% although we may be seeing a levelling.  It should be noted that it is not uncommon for prices to adjust up and down during a cycle, upward or downward cycles.

—-

Blog post provided by Murphy Costello Personal Real Estate Corporation, a REALTOR®  with Macdonald Realty in Vancouver.