GTA Real estate market notice growing importance of Feng Shui
Three most important factors for Chinese buyers are:
Location
Price
And Design following the Feng Shui principle
Says Mr. Chan in a Globe and Mail article on the influence of Chinese investors on the GTA condo market.
http://www.theglobeandmail.com/real-estate/chinese-stoke-torontos-condo-boom/article1795047/
Further more the article states that Chinese Buyers have become the dominant force in the GTA new condo market. Oversee investors, the 100,000 – strong local community, and the 20,000 to 25,000 Chinese citizens who are student residents in the Toronto area account for 25% to 40% of buyers for new condos. In some prime areas of Toronto this percentage increases to 65% during the launch weeks when prices are lowest.
Mr. Wong, president and founder of Living Realty, says “their impact is huge”. Chinese investor makes up 40- to 45% of all new condo sales in his company.
Six major brokerages specialized in trade and about 10 Chinese publications in the GTA, shows the importance of Chinese investors. Furthermore there is even a professional organization of Chinese Real Estate Professional Society of Ontario.
Chinese investors are attracted to the positive environment here, where we see a steadily growing residential market with a stable economy and political structure.
Restrictions back in China require 30% down payment for first home buyers and 50% for the second purchase. Further purchases are cash transactions. The Canadian system on the other hand, allows a lot more flexibility as long the investor qualifies for the mortgage.
Another point is that new condos in China have on average a size of 350 square feet. Condos in the GTA area are a lot bigger than that.
The article also states that smart investors make up to 4% on the rental income plus an increase in equity.
Summarizing, the GTA market can neglect the new realty. Chinese investors and buyers make up the biggest customer segment for new condos. The change in the market is not a local phenomena limited to the GTA. From my experience in the Middle East, Far East and Europe we will see the same trend here.
One of the points that I found missing is the influence of East-Indian ethnicity buyers. This community is similar strong and should be not neglected. The Indian society is a strong believer in the principle of Vastu Shastra a concept similar to Feng Shui and also based on directions.
Both segments together make up more than 60% of the market. My advice for the GTA condo market is act on this trend. Developers should acquire a professional Feng Shui consultant right from the start. Increased prices, quicker sales cycles and a positive image are only few of the value adds.
As Donald Trump said” you don’t have to believe in Feng Shui for it to work. I just know it brings me money. It’s just another element in which you can have the advantage over your competition. “. Donald also states that “It’s important to adhere to the principles of a large group of people that they truly believe this principles and if they believe them, then that’s good enough for me.”
What is done for decades internationally is finally reaching the GTA condo market.
