A Chinese company listed on the New York Stock Exchange is beginning to develop residential property in the U.S., hoping to tap into the hot demand among Chinese investors for U.S. apartments.

Xinyuan Real Estate Co. purchased a site last month in Williamsburg, in the New York City borough of Brooklyn, for its first development in the U.S., a 216-unit condominium building. The company also is scouting for other U.S. projects, planning to sell about 40% of the units it builds to Chinese investors.

Chinese developers of apartment buildings have an edge over U.S. developers when it comes to reaching potential buyers in China, says Omer Ozden, an adviser to Xinyuan and other Chinese investors in the market for U.S. real estate. “If right out of the gate you can get 40% the building sold to mainland Chinese, it’s going to be a successful project.”

Read more at the Wall Street Journal.

Vancouver City Council heard a presentation today by the City’s Engineering Services and Director of Transportation on the various options for Broadway Rapid Transit. The presentation provided further detail on demands for transit and business opportunities on the Broadway corridor.

The City highlights the urgency to implement an upgraded form of rapid transit along the growing Broadway corridor. Currently the UBC 99 B-line is the busiest bus route in North America. The City is clearly veering their support away from LRT and toward sub-surface Rail Rapid Transit (ie. Skytrain).

While previous policy indicated a willingness for a subway only to Arbutus, there are many who are arguing for an extension of subway all the way to UBC, rather than rapid bus, which had been explored as an option. As Frances Bula points out, the University is one group that much prefers a single skytrain line all the way to UBC.

Source: City of Vancouver

Canada’s Government Bond Yield for 5 Year Notes has declined from 1.39% to 1.26%. During the last 12 months, the 5-year bond yield remained relatively flat. By comparison, in November 2010, 5-year notes were yielding 2.48%. Yields remain at or near all-time lows that reflect ongoing global uncertainty, a trend which is reflected in yields on sovereign debt in other economies.

The Bank of Canada has shown no indication that it will raise rates until the currently risky economic outlook becomes clearer; likely in late 2013 at the earliest.

For investors looking to buy commercial real estate assets in Vancouver this points to debt financing rates at or near record low level heading into 2013.

A report released last week by BMO shows that sales volumes for existing home sales have fallen well below the 10-year average, “with realtors citing the federal government’s decision in July to temporarily suspend applications for the federal immigrant investor program as a dampening factor.”

Vancouver remains the priciest housing market relative to income, by far. “Still, with mortgage payments on the benchmark home (all types) consuming over half (52%) of
median family income, a further decline in Vancouver home prices would not be surprising, nor exceptional, as the city has faced four double-digit corrections in the past three decades.”

Source: BMO Capital Markets