BNN interview about the Vancouver housing supply problem

Business News Network (BNN) speaks with Jonathan Cooper, Vice President of Operations at Macdonald Real Estate Group about David Rosenberg of Gluskin Sheff + Associates comments on policymakers and housing supply constraints and how they would relate to the Vancouver real estate market.  What change are needed to address the Vancouver housing supply problem?

 

Best policy levers to address Vancouver’s housing supply constraints


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B.C. takes aim at shadow flipping in the real estate market

Business News Network (BNN) speaks with Jonathan Cooper of Macdonald Real Estate Group on the BC government’s new regulations aimed at what is called “shadow flipping”. While the aim is to further protect sellers in residential real estate transactions, just how much of an effect will this move have on the hot housing market?

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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!

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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.

2014 charitable donation to InspireHealth and the BC Cancer Foundation | Macdonald Real Estate Group

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In lieu of cards or gifts, Macdonald Real Estate Group will be financially supporting cancer research and patient care through the BC Cancer Foundation and InspireHealth.

InspireHealth is a BC not-for-profit which provides integrative care for individuals with cancer.  Their team of doctors, nutritionists, counselors, and exercise therapists focus on the spiritual, emotional, and physical health of patients as they go through traditional cancer treatments like Chemotherapy.

InspireHealth’s cancer care model serves to complement standard cancer treatments.  It helps prepare the individual for the anxiety and emotional complexity that can be major factors when facing a life-threatening illness.  While the cancer itself is treated, InspireHealth ensures that other aspects of the patient’s health – like diet and exercise – are supported.

If you would like more information about InspireHealth you can visit their website or Shelley Ross at sross@inspirehealth.ca.

Sincerely,

Jonathan Cooper
Vice President, Operations
Macdonald Real Estate Group

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