Chinese Look to Buy Land in Ontario

Ontario Farmlands Attract Chinese Investors

Chinese investors are making huge inroads into the real estate in Canada, which include large areas of farmlands, especially in Ontario.  Monaxxion, which is a Montreal Based firm financed primarily by the Chinese investors, is planning to buy about 40,000 hectares of farmlands in Canada.  According to this company, which looks after the investment needs of Chinese immigrants, the current investment would be around $300 million to buy agricultural land for sale in Ontario.  The firm is also confident of getting a further $200 million worth of investments.

Monaxxion had been trying to buy land in western Canada and Quebec but were deterred by the local regulations.  The company along with its Chinese investors are now turning to Southern Ontario land because the regulations are favourable here and it is easier for a foreigner to do land dealings in Ontario as compared to other areas of Canada.

Though the current target for purchase is 40,000 acres, the firm says that this was only a beginning.  Earlier it was the Europeans who had the money to buy land in Canada.  The situation has now changed and the money is now pouring in from China.  Chinese are not fussy about the kind of farmland being purchased as they are basically only interested in investment.

According to officials of Monaxxion, the local farmers are also keen to sell their land to the Chinese.  This is evident from the fact that the company is getting an average of 30 calls daily from farmers who are willing to sell their land.  The company has so far received 850 calls mainly from farmers from Ottawa area and Quebec border.

Chinese investors are also very interested to do partnership with Canadian farmers, says the company.  They have shown enthusiasm about the methods adopted by Canadian farmers.  The Chinese also may bring in workers from China in future to do the manual labour in these farms. Though the Chinese had first looked for buying land in Quebec, they have now turned to Ontario, which they perceive to be a better market with favourable laws.

The Chinese investors are also attracted to Canada by the fact that the economy is stable and the land is still available at much cheaper rates as compared to other countries.  Also there is no barrier for any foreigner to invest in farmlands in Canada, except for non-residency taxes.  Due to this, much more investment can be expected from China in the coming days.