Traveling Through China and Rethinking the Future of Toronto Real Estate

Traveling Through China and Rethinking the Future of Toronto Real Estate

On my most recent trip to China, I visited several major cities, including Beijing, Shanghai, Shenzhen, and Hainan. It had been many years since my last visit, and I was genuinely surprised by how much the country has changed. In many ways, China has developed far beyond my previous impression, daily life feels more convenient, cities are cleaner, and service standards have improved noticeably.

One thing that stood out immediately was convenience. Delivery services in China are extremely advanced. You can order groceries or meals without stepping outside, and still enjoy freshly prepared food delivered directly from restaurants. It has become deeply embedded in everyday life. Taking the bullet train for the first time was another eye, opening experience. The speed and efficiency made it clear how much China has invested in modern infrastructure.

During the trip, I spent time talking with friends as well as local taxi drivers in Beijing. Many taxi drivers I met were originally from other cities, but they chose to work in Beijing because it still offers better income opportunities. However, despite living and working there for years, most had no intention of purchasing property or settling permanently. Housing prices remain high and unaffordable, even for people with stable income. For them, Beijing is a place to earn money, not a place they can realistically put down roots.

Another topic that came up repeatedly was pressure. In China, people often describe this as “卷 (Juan)”, competition at every level of life, from education and careers to housing and social expectations. The pressure is intense and widespread. When I compare this to the Greater Toronto Area, affordability is also a growing issue for young people, but overall, the situation still feels less extreme than what I observed in China.

From conversations with friends, many feel that China’s economy is cooling, though the reality seems highly sector, dependent. One friend working in internet security told me business remains strong, but competition has increased significantly. He also mentioned that several long, term clients from previous years have gone bankrupt due to broader economic challenges. Another friend is involved in a large AI project, valued at over $400 million, in Malaysia, working with Alibaba. He believes that ongoing tensions between the U.S. and China will push high, tech industries into direct competition, but at the same time, this confrontation may create new opportunities in the region.

When the discussion turned to real estate, the mood became noticeably more cautious. In Hainan, I personally saw many completed residential buildings sitting empty. Locals explained that these were large unsold units, and demand has largely disappeared. In Beijing, one friend told me his neighbor received an offer of 820,000 yuan last year, but ended up selling the same property this year for only 650,000 yuan. Shanghai painted a similar picture. A friend bought in a newly developed zone where residential and commercial buildings have already been completed, yet many remain vacant. This pattern is not isolated, it’s happening across many cities, including Shenzhen.

Looking back at my experiences elsewhere in Asia adds more perspective. Last year, I visited Singapore and Malaysia and took time to study their local property markets. Singapore real estate, in my view, remains a solid long, term investment. Strong government control, policy discipline, and its role as a financial hub in Southeast Asia provide long, term stability. Malaysia, on the other hand, appears to have promising economic prospects over the next 10 years. The open question is whether local incomes can keep up with property prices, and whether local buyers will truly have the purchasing power to support long, term demand.

Returning to the Greater Toronto Area, the market remains weak, and confidence is still fragile. While GTA does not face the same level of oversupply seen in parts of China, affordability challenges, cautious buyers, and economic uncertainty are clearly weighing on the market. Young buyers in particular are feeling the pressure.

With Canada’s Prime Minister set to visit China in the coming week, there is hope that the two countries can rebuild trade ties. Both economies have areas where they complement each other, and Canada, in particular, needs a new growth engine amid increasing U.S. isolation. Stronger trade relations could provide some long, term economic support, which ultimately feeds back into employment, confidence, and housing demand.

This trip reinforced one key takeaway for me: real estate markets may look different across countries, but they are ultimately shaped by confidence, affordability, and long, term opportunity. Whether in Beijing, Shanghai, Singapore, or Toronto, when people hesitate to commit, it’s rarely just about price, it’s about whether they believe the future is worth investing in.

 



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