Beijing, June 21(ANI): China's elite are snapping up properties overseas in anticipation of domestic inflation continuing to rise.
According to real estate service provider Colliers International, the proportion of Chinese buyers in Vancouver's property market are rising. At the end of the first quarter this year, Chinese buyers accounted for 29 percent of total homebuyers.
China has spent 1.3 billion yuan (200 million dollars) through Colliers' international property department in the past six months, with Canada, the UK and Australia topping among the buying destinations on the list.
"We are expecting a clear increase in the extent of mainland buyers' purchases of overseas properties this year because of the government's rigorous restraint on the number of homes a family can buy in key cities," the China Daily quoted Managing Director of Colliers International (North Asia) Alan Liu, as saying.
Demand from mainland immigrants now accounts for 29 percent of all new homes in Vancouver. The situation in London is similar. Last year, overseas nationals purchased 28 percent of all resale properties across all prime London sites and 54 percent by value in the prime central London area price bracket of over than 5 million pound (8 million dollars), according to Savills research report.
China and the Commonwealth of Independent States (CIS) have seen the biggest increase in global billionaires since 2007.
While CIS buying activity accounts for substantial 15 percent of prime central London purchases by value, Chinese billionaires are yet to have a real impact, accounting for just 3 percent of prime central London resale purchases. But Chinese are increasingly seeking various ways to manage their wealth globally.
"An increasing number of people from the Chinese mainland came to us and put their money into a property trust unit in Jersey to save VAT and avoid heritage tax as well as capital gains tax when trading again," Chief Executive of offshore financial center Jersey Finance, Geoff Cook said.
Copyright Asian News International/DailyIndia.com
Cat: Vancouver Real Estate
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