OFFPLAN NEWS

(06.07.2007 )
Cheap property in China China property market looking bullish

If shrewd overseas property investment were simply about finding which national economy was booming, then almost every penny would be invested in the Chinese real estate market, writes Paul Beasley.
After all, according to the World Bank, China has the fastest growing economy in the world, with GDP growth at 9.00 per annum over the past 21 years. Foreign Direct Investment, which has increased at 26 per cent a year for the past 14 (source: US-China Business Council), has helped drive the Chinese economy onwards, while incomes in urban areas increasing an average of 8 per cent a year since 1998 (source: Business Week) has been one of the results.

Unsurprisingly, with such an increase in both the prosperity of urban-dwelling Chinese and the number of foreign workers seeking big salaries in the country, property prices have followed the general economy trend, increasing nationwide at 10-40 per cent per annum for the last five years.

However, its world-leading economic growth doesn't make the China property market a law unto itself. As with every other overseas property transaction, only the right property in the right place at the right time will bring financial rewards.

For example, despite massive urbanisation as Chinese peasants flood into the major cities looking for work – a demographic shift that happened in Britain two centuries ago, residential property prices in Shanghai, Beijing and Guangzhou have been a little sluggish of late.

This is why some China property agents are tipping apartment complexes as a better bet in the short to mid term.

Pauline Scrace from International Horizons is one such agent. She believes that apartments in Shanghai currently represent some of the best property investment potential in China.

"Shanghai is the business and trade centre for the country, and has many opportunities for investments for the domestic buyer and international property investment. It has one of the world's major ports and has a large expat community because of its international outlook. Prices for similar apartments in London, Tokyo, New York and Hong Kong can be two-thirds higher."

With plenty of room to grow until they reach a price ceiling, property values in Shanghai have made a fast start: "Luxury apartments in Shanghai have doubled in value since 2003, according to Business Week," Scrace comments.

Certainly, as with any city investment, apartments with a favourable location and close proximity to excellent transport links tend to offer a stronger return. This is why Scrace believes that Dijie International Town, which is only 12 minutes to Pudong International Airport by maglev train and has good amenities nearby, is a solid opportunity. Here, two-bedroom apartments start from £68,000, plus agency fees.

But, as Scrace would agree, price rises are obviously subject to national and international factors and, like all emerging markets, there are no guarantees no matter how bullish you feel about your chances of making a sizable profit.

News by Country

»(06.07.2007 ) China real estate China's real estate market up 69 percent in 2006: report
Transactions in cheap property China's real estate market surged 69 percent in 2006, funded to a great extent by foreign investment, a leading research firm said Wednesday. ... » find out more

»(06.07.2007 ) Real estate in China China paves way for foreign banks
China on Wednesday issued landmark rules allowing foreign banks to offer a full range of Chinese properties services to local customers – a liberalization promised as part of its 2001 entry to the World Trade Organisation. ... » find out more

»(06.07.2007 ) Real estate China China promises to rein in property market
China promised to restrain its surging Chinese property market, which authorities worry could fan inflation or lead to a financial crisis, possibly undercutting the country's rapid economic growth. ... » find out more

»(06.07.2007 ) Cheap property in China China property market looking bullish
If shrewd overseas property investment were simply about finding which national economy was booming, then almost every penny would be invested in the Chinese real estate market, writes Paul Beasley. ... » find out more

»(06.07.2007 ) Cheap property China China property tax not practical at this time
AFTER issuing in vain a series of policies to slow the increasing rate of housing prices in some cities, the central government is thinking of introducing a property tax to control the China real estate industry. ... » find out more

»(06.07.2007 ) Cheap Chinese properties Chinese Agencies Target Fraud
China said yesterday that eight government agencies are taking part in a nationwide campaign to stamp out irregularities in the real estate in China market, in Beijing's latest move against corruption and overheating in the booming sector. ... » find out more

»(06.07.2007 ) Cheap Chinese property Chinese delegation visit the International Property Show 2007
A Chinese delegation comprising of more than 40 leading real estate China developers visited the International Property Show 2007, according to Strategic Marketing & Exhibitions, organizers of the event.... » find out more

»(06.07.2007 ) Property for sale in China Chinese Property Insurer to Go Public
Chinese property for sale insurer Tianan Insurance Co. announced it is likely to hold an initial public offering, though it probably would not occur until next year. The company has set up an office to prepare for the IPO. ... » find out more

»(06.07.2007 ) Properties for sale China Quelling hiccups in China new property laws
LAST month, the National People’s Congress, China’s parliament, adopted a landmark property law that grants equal protection to public and private property for sale in China - a revolutionary move for a country that still calls itself social... » find out more

»(06.07.2007 ) China property for sale Demolition ends China house row
The home of a Chinese family who defied properties for sale China developers in a high-profile campaign has finally been demolished. ... » find out more