Why Chinese will be pouring money into real estate
In a nutshell, Chinese buyer is no different from Canadian. They are humans and are perfectly aware of ridiculous ratios that exist in certain cities. However, they are in desperate need to get the money out from the reach of Chinese government hence they will overpay for real estate and often buy them sight unseen. No, they will not be the first to bail if the real estate shows any weakness, as a matter of fact they will keep their properties long after the average Canadian sold at a loss.
Many uneducated bears will scream that this is dirty money, but let me ask you this. If Canadian government is to impose a 90% on your savings would you still keep the money in Canadian banks or would you move it overseas? Does Canadian money then become dirty money? No, there are not that many Chinese buyers in Canada, but they will skew the averages by overpaying for certain properties.