A deal struck between two firms points to further commodification of Canadian real estate
Chinese real estate portal Juwai—which collects staggering quantities of data on Canadian housing—has struck a deal with online retailer JD.com to start selling homes like shoes.
Juwai markets overseas properties to buyers in China’s Mainland and, according to a JD.com statement buyers can view houses listed for sale “like milk, shoes and other household goods.”
In addition to Canadian real estate, home listings from Australia, the U.K. and U.S. will also be advertised on JD.com—all popular markets for Chinese investors.
JD.com, which is often referred to the Chinese equivalent of Amazon, made a special request for Canadian real estate because of how popular of a commodity it’s become among Chinese consumers.
China forbids capital outflow exceeding USD$50,000, but it’s in the midst of loosening such restrictions and retailers like JD.com—China’s second-largest retailer after Alibaba—are champing at the bit.
However, news about the deal between Juwai and JD.com is bound to inflame tensions between domestic and foreign buyers, whom believe responsible for rising unaffordability.
Countries like New Zealand, Britain, Australia, Switzerland and Singapore, to name a few, have taken measures to protect their housing markets from foreign speculators, while Canada has steep foreign buyer taxes in its two most expensive real estate markets.