Nouveau Silk Road: From Middle Kingdom to The Great White North

Jonathan Manthorpe believes there is a direct line linking the explosive real estate bubbles in Toronto and Vancouver and how secure Chinese President Xi Jinping looks on his throne.

How China’s Politics Messing Up Canadian Real Estate Markets

The evidence — the vast amount of money being spirited out of China by relatives, friends and cronies of the Red Aristocracy around Xi — suggests he’s set to tumble. Last year about $US1 trillion was spirited out of China by Communist Party leaders and their hangers-on, in defiance of currency regulations.

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They clearly do not feel the regime is secure and want their assets hidden away in stable overseas havens like Canada, the United States, Australia or Europe.

Sounds like it’s not “London Bridge is falling down”, its “The Great Wall is tumbling down”?

More @ TheTyee.ca

3 Reasons Why British Columbia’s Tax on Foreign Housing Buyers Won’t Work

The Motley Fool Canada
Firstly, there is a lack of evidence that foreign investors are responsible for soaring housing prices.
Secondly, it has been speculated by some market pundits that a housing bubble doesn’t even exist.

So what?

Motley doesn’t really have the answer … One thing for sure, Vancouver is dragging Seattle’s real estate to become one of the most expensive place to live in U.S … Bad influence, eh?

Hot Money and Seattle’s Growing Housing Crisis: Part One 

Meanwhile, those with vested interest in Vancouver’s real business are fight tooth and nails … believe the taxes are going to kill off The Goose That Laid the Golden Eggs – Real Estate

Scuttled property deals, legal risks mount from Vancouver’s foreign property buyer tax: ‘It’s a domino effect’

Financial Post
Morrison said the effects could take years to play out given some deals involve the sales of condos still being built. Canada’s westernmost province introduced the tax for foreigners as price gains intensified this year. The cost of a detached home in

While I think the New Taxes On Foreign Buyers Will Not Affect Vancouver Real Estate Sales In The Long RunBill Tieleman @ TheTyee.ca opines such measure is wat too little,, too late … Folks will be sleeping in the street. Regardless.

Liberals’ Housing Moves Way Too Little, Too Late to Improve Affordability

TheTyee.ca
Years of inaction mean only the rich can hope to own a home in Vancouver. … One example: Only 10 years ago, just 11 per cent of Vancouver detached homes were valued at $1 million or more – when the city was already Canada’s most expensive.

However, things seem to be slowing dow? Maybe not, developers in Canada are good at creating supply shortage to shore up prices, don’t they?

Canada’s housing starts fall in July from June: CMHC

The Globe and Mail
Housing prices might be a bubble in someCanadian cities, but July data show that starts and construction rest on a firmer foundation tied to population growth and demand,” CIBC Capital Markets chief economist Avery Shenfeld said in a research note.

Building Permits also down …

Canadian building permitsdown in June, primarily in residential, StatCan says

Toronto Star
OTTAWA—Statistics Canada is reporting that the value of building permits issued by cities in June was $6.4 billion, down 5.5 per cent from the previous month.
CANADA: Building permits, June 2016 
Canada’s June building permits drop on lower multifamily plans 

Alberta building permit drop in June a ‘healthy rebalancing,’ says ATB economist

CBC.ca
And that’s not a big surprise, in 2014 you saw a surge of building construction and activity and now it’s all pulling back now that we’re in a recession,” he said.

And Loonies remains “Rock Steady” (at 30% discount against the green back, though),

Loonie Little Changed FollowingCanada Housing Starts Data

London South East (registration) (blog)
CANBERA (Alliance News) – At 8:15 am ET Tuesday, Canada Mortgage and Housing Corp. released Canada housing startsdata for July at 8:15 am ET Tuesday.

Now, lets forget about affordability – house will never be affordable for a long time to come, whether the Emperor of Middle Kingdom, Xi Jinping tumbles down or not. Let’s just examine the rental situation …

From a house to a bedroom: What $1000 a month can rent across Canada

CTV News
In Canada, a monthly budget of $1,000 can lease a renter anything from a single room in a house with five roommates to a three-bedroom house on a quiet cul-de-sac.

Mario Canseco: Poll finds two-thirds of Metro Vancouver renters unhappy with their living situation

Vancouver Sun
In the apparently endless discussions related to the issue of real estate in MetroVancouver, the true voice of renters has been conspicuously absent.

Vancouver rental market places people in a ‘lower class’

The Globe and Mail
… rising cost of rental units in Canada’slargest cities, along with vacancy rates near zero, mean it’s increasingly difficult for people who rely on rental units to find – and keep – their housing.

 

Can we conclude it’s getting Smaller, Tighter, More Expensive, Unsatisfactory, and even making renter folks “No Class”?

And “skinny” development like this ain’t going to help …?

The skinny on Toronto’s new extra skinny condos

MetroNews Canada
Deborah Scott, the architect and developer behind 24 Mercer St., said the “boutique”condo tower is modeled after the narrow lofts of New York’s Soho neighbourhood.

 

Here is a few shots of Highrise Utopia by Michael Wolf: –

Tall, skinny, but not sexy at all. More at 

And the online buggers like Uber, AirBNB, or whta have you better don’t us the real brick and mortar warriors for a ride … ?

Kelowna joins cities looking to regulate short-term rentals like Airbnb

CBC.ca
“We’ve created a set of regulations that enables people to use part of their property to achieve an income through short-termrentals,” said Osborne, adding the strategy isn’t likely to address other issues around access to affordable housing. Aaron
Looks like we are at the cross road into an uncharted territory … Let’s hope Canada will become an real utopia of north america, and another  Slumdog Millionaire of the third world.

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