Many of us have read or heard the news stories coming out of Vancouver regarding the influx of vacant properties, skyrocketing prices and now a foreign buyer’s tax. We have also heard that much of the blame has to do with investment dollars coming from China. Society loves to cling to news headlines, especially about real estate, and why not? Real estate is an important topic. It affects where we live and to how we will live. I am certainly not discounting the news stories or that some of the blame is due to foreign investment, but Vancouver does represent a perfect storm. It is located on the coast and properties are at a premium because they simply are not making more ocean front land. But as long as I can remember, and even when I lived there in the mid 90’s, properties were always expensive already. It has always been densely populated and competition to live near the water in a densely populated market does drive up prices. It’s always been that way and it will always be expensive in comparison to much of Canada. It’s a Vancouver problem.

 

Before we get excited about buyers from China investing in Calgary, we need to better understand the majority of those buyers. We can’t paint all of this population with the same broad brush strokes, just as we can’t make inferences about any population with that same paint brush. In other words, let’s not blame the whole because of the sins of a few. I have a contact in Yale Town in Vancouver who sells luxury real estate. In his experience, he says most buyers from China are not looking to purchase extravagant homes. They want to spend less, but end up spending a lot because, well, Vancouver is already expensive. The majority of buyers from China simply want a better life in Canada. We may complain about our governance in Canada, but who are we kidding when drawing comparisons to other nations? Taxed? Yes we are taxed in Canada, but nobody is “seizing” our wealth and jeopardizing our family’s future. Wealth by our standards does not necessarily make you wealthy in China. My contact told me of a story of a buyer taking possession of his modest Vancouver property to make a better way of life for himself and his daughter. In broken English and through an interpreter, he asked where he could buy fresh fish, something he was denied in China. This is not a picture of uber wealth flooding our major Canadian cities. Many Chinese immigrants, as with other immigrant populations, fill positions for work and open up businesses, contributing to our economy. This is the kind of investment dollars I am talking about and for which we should welcome. Unfortunately, many buyers from China don’t know much about Calgary.

 

Recently, Calgary has taken some civic pride in The Global Liveability Index 2018, a report by The Economist Intelligence Unit. Calgary was ranked fourth on the index and holds the highest ranking in Canada and in all of North America. No American cities ranked within the top ten cities on the list. In true Canadian fashion, it seems Calgarians are proud, but is not bragging about this statistic, but it is being noticed by other centres in Canada and in other nations. I have contacts in Australia and the United States that have congratulated me on our city making the top 10 on the list and for being tops in Canada. It should be a bigger deal than we are making it out to be.

 

Out of a possible 100 points, Calgary has been evaluated 100.0 points for stability, 100.0 points for healthcare, 90.0 points for culture and environment, 100.0 for education, and 100.0 points for infrastructure, for an overall rating of 97.5 points. As a real estate professional and proud Calgarian, I feel we should be much more exuberant about our rating. This is not just a pat on the back. This is a global rating. For those of us residing in Calgary, we already know it is a great place to live. So why not tell the world? This kind of news attracts investment from companies who are pleased to relocate employees to a great city, in the right economic climate, of course. It also makes us look more attractive to those from other nations, especially those looking to make a better life with dollars to spend such as buyers from China.

 

Calgary represents much more affordability for buyers from China than some of the other major centres in Canada. Currently we have many more listings than buyers in the marketplace. This imbalance is putting downward pressure on prices. To say that Calgary needs more homebuyers right now is an understatement. This is not only a resale home issue. There are many new homes and condominiums being constructed in our city that need people to buy and live in them. While many Calgarians want more affordability, there are many home sellers with homes sitting on the market for many months at a time that would beg to differ. Calgary is a much better alternative and much less expensive than the Canadian city by the sea or the fourth largest city in North America. Also, Alberta does not have a foreign buyer tax.

 

Let’s not forget all of the offerings within Calgary and in the vicinity, too many to name here. Of note, Spruce Meadows, The Calgary Stampede, our arts community, and professional sports teams. Calgary was home to the 1988 Winter Olympics and is considering a bid for the 2026 games. We experience 4 distinct seasons, each with its own offerings for sport and culture. We are a family community and support families and the collective belief in our young people. We have the Canadian Rocky Mountains to the west with all of the offerings, activities and beauty in any season. To the east, experience something different in the prairies. We are close to the American border to our south and to the north, more adventure, fishing and lakes. We have a true international airport offering flights all over the world. And if you really want to visit the city by the sea with the high real estate prices, we are approximately an hour flight to Vancouver International Airport. It’s a nice place to visit.

 

There is no question that Calgary is a great place to live. We are number four on the list of The Global Liveability Index 2018. The world is taking note and buyers from China are likely taking note as well. Let’s embrace it.