China Leaves Its Hand In the Cookie Jar that is Canada’s Real Estate Market

The Canadian market has been struggling to control the “power’ of foreign buyers and just when it thought it had a breather,two large Chinese companies have joined hands to buy some property.

Juwai, a Chinese foreign real estate platform and Tencent, are makign it their mission to increase the number of Chinese buyers within the international markets. This is admirable but both companies will most definitely find it difficult to get into the market.

Juwai is almost always in the facilitator in real estate transactions in the U.S. and Canada. Transactions worth billions of dollars! Tencent is China’s largest company. Yes, bigger than Alibaba and China Mobile.

The deal between the two will have Juwai properties on the Tencent real estate platform thereby giving the company more exposure seeing that the platform has 200 million users a day! The platform now has international listings which include Canadian markets in Vancouver.

The main reason for this merger of sorts is the decrease in foreign buying activity in the B.C. China has strict rules of now and here it is:

Nothing more than US$50,000 will be permitted to leave the country annually. That money cannot shared or taken as a loan from friends and relatives which was previously allowed.

You will also have to declare the reason why the money has to converted and the reason better not be for real estate.

If you are found breaking the law, you will be investigated for laundering money and will be banned for a minimum of two years from currency trading.