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People of Chinese origin Canada's top homebuyers
Rate of ownership far exceeds other ethnic groups: study

Wency Leung, Vancouver Sun
Published: Tuesday, April 25, 2006

The rate of homeownership amongst Canadians of Chinese descent is about 10 per cent higher than the national average, and far surpasses all other ethnic groups, although immigrants from mainland China are more likely to rent homes than those from Hong Kong, according to new research by a University of Victoria professor.

Based on the most recent 2001 Statistics Canada census data, 75 per cent of heads of Canadian households who are of Chinese origin own homes, compared with 63 per cent who identified themselves as non-immigrants, 67 per cent of those of European origin, and 65 per cent of those of multiple origin, said Barry Edmonston from the university's sociology department.

While that has changed little since the early 1990s when homeownership amongst Canada's Chinese population was 76 per cent, Edmonston said more recent immigrants have come from mainland China, rather than Hong Kong, which provided a surge of immigrants during the 1980s and 1990s. That has caused some significant shifts in home-buying trends, Edmonston said.

"The differences in those groups is really very strong," he said by telephone Monday.

Edmonston studied immigrant populations in Toronto, and found that the large wave of Hong Kong immigrants during the 1980s and 1990s tended to settle in suburban areas, or in neighbourhoods outside the downtown core, where they could buy a home.

In comparison, more recent immigrants from mainland China are settling primarily in the downtown area, and are almost always renting.

"They seldom buy [homes] in the first five to six years," he said. "They probably will eventually buy, but they're not buying homes as quickly as immigrants from Hong Kong were buying."

Unlike those from Hong Kong, recent immigrants from mainland China may not have had any previous experience owning a home and securing a mortgage, he said.

He added that new immigrants are also usually young, in their 20s, and are more likely to buy a home after 10 or 20 years, when they are older, have more money, and are more integrated into the country.

He noted, however, that the average financial savings for new Chinese immigrants who arrived in Canada in 2000 and 2001 was higher than almost all other ethnic groups.

Citing a University of Alberta study, Edmonston said average savings for Chinese immigrants was $40,000, compared with Europeans with $27,000, and Japanese with $36,000.

Edmonston said his research indicates Chinese immigrants are adapting well to life in Canada, but more research must be done to study variations within that group and other groups that have low homeownership rates.

"There's some factors there that are related to ethnicity we don't know now," he said.

Edmonston's research, which he completed last week, is expected to be released in a report next month.

[email protected]

ONLINE EXTRA: For today's developments, subscribers can visit: www.vancouversun.com

- - -

HOME OWNERSHIP: CHINESE-CANADIANS LEAD IN THE BUYING GAME

Percentage of home ownership for ethnic origin groups (2001)*

Chinese 75%

European 67%

Multiple origin 65%

Canadian/Other single origin 63%

South Asian 63%

Other Asian 62%

West Asian 56%

Vietnamese 56%

Filipino 55%

Arab 51%

Black/Caribbean 51%

Latin American 44%
© The Vancouver Sun 2006
 

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Never needed a study to tell me this. Why do you think almost all major developments are now advertizing in Chinese media? But aside from all this, it's very interesting to see your own observations and experiences confirmed in a report. My new neighbourhood's population in Markham (still not completely finished) is at least 90% from Hong Kong origin, with the remaining 10% being Caucasian, South and East Asian.
 

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As a stucco contractor for over 2 decadeds i can tell you that the stats are at least that high. most of my work over the years has been from Chiniese home owners. that is why i have always been a supporter of more imagration. they are a big part of our nations economy: past, present and future.
 

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I wish the article had gone a level deeper as for why and how this is happening and why and how this is not happening to other groups.
 

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crossroad said:
I wish the article had gone a level deeper as for why and how this is happening and why and how this is not happening to other groups.
The article did a fairly good job succinctly explaining this trend:

"Unlike those from Hong Kong, recent immigrants from mainland China may not have had any previous experience owning a home and securing a mortgage, he said."

and

"He noted, however, that the average financial savings for new Chinese immigrants who arrived in Canada in 2000 and 2001 was higher than almost all other ethnic groups.

Citing a University of Alberta study, Edmonston said average savings for Chinese immigrants was $40,000, compared with Europeans with $27,000, and Japanese with $36,000."

$40,000 is a solid down payment on a home.
 

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Asians tend to have a higher savings rate than their Western counterparts. I don't think those patterns deviate significantly when they move overseas. Many Hong Kong immigrants cashed out rich during the property boom in the 1990s and came to Canada with a lot of money. The timing was perfect - they got a lot of money from selling their real estate in Hong Kong and snapped up cheap real estate in Canada during the recession. It wasn't hard to buy a $300k luxury home back then and add a Mercedes / BMW / Lexus with plenty to spare.
 

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i think it goes along that most immigrants are now coming from asia

the last century most immigrants came from europe

i think now and in the future asian migration will be the thing
 
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