Sherry Cooper’s Insights on the Flow of Chinese Capital into Canadian Real Estate

General Nazarina DiSpirito 31 May

“Some believe the Chinese money ball will only grow, bouncing its way around the world. Many believe that China doesn’t need to stop the capital outflow, but just to contain it… However, everything about China breaks historical norms…. This poses a significant downside risk to Canada’s strongest housing markets”

In her latest article, DLC economist Sherry Cooper describes the influence of the “largest episode of capital flight in history” China is experiencing on the Canadian housing market.  She notes that there are varying opinions on what can and should be done about the outflow of Chinese money, as well as whether the Vancouver and Toronto housing boom can last.  As Chinese officials have intensified their crackdown on “underground banks” used to move money out of the country, Cooper notes that “a slowdown in the volume of Chinese capital moving into Canadian housing is a meaningful risk factor for the hottest markets in Canada.”

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