Overseas property investors were lining up to invest in property in China until government concerns about foreigners pushing up property prices sparked increased regulation. Now it is clear that ordinary Chinese property buyers are deeply concerned by the countries property price rises. Forbes reveal that the definite winners in the Chinese real estate market appear to be Chinese property agents and investors.
Increasing regulation aims to slow the market down
China has introduced more than a dozen guidelines, and aimed at dampening demands for Chinese property. Some measures hope to control credit, such as higher deposit-reserve ratios. Some squeeze down the profit margin for investors, such as a new business tax. Some new rules ensure land supply and some lay down plans to construct more affordable houses for the low-income.
Shanghai a city of cranes
China economic growth is stunning and overseas property investors want to be part of the action. Shanghai is a prime example of the Chinese property boom. It has seen some intense development in fact before 1992 Shanghai did not have any structures higher than seven stories. Shanghai is now the home of 2500 high rise buildings, including the third largest building on earth. The GDP in Shanghai is seven times the one of the rest of China and far above the average of most countries in Latin America or Mexico.
Chinese airports another sign of expansion
The CAAC estimate that by 2010 Chinas airports will handle 500 million passengers. China airports are set to handle this rise in capacity with a series of expansion projects already underway. Beijing Capital International Airport is expanding with a third passenger terminal. The brand new terminal will be finished before the 2008 Olympics and will be able to handle 60 million passengers.
Bigger Chinese airports
Baiyun International Airport has already received the Chinese expansion treatment. Shanghais Pudong airport is receiving a second terminal with more planned in the future. The Xianyang International Airport in Shaanxi has ambitious plans for a new runway and terminal.
China economic growth boasts:
- The fastest growing economy in the World with GDP growth at 9% p.a. for 21 years. (World Bank)
- Incomes in urban China are up an average of 8% a year since 1998. (Business Week)
- The government is committed to maintain just above but no less than 7% GDP growth p.a. till 2020
- Foreign Direct Investment increases at 26% p.a. for last 14 years. (US-China Business Council)
- Host of 2008 Olympic Game, 2010 World Expo, and many more international events.
Survey tells of worrying times
The Social Survey Institute of China survey aimed at finding out just how concerned Chinese house buyers were about the price rises in China. The survey found
- 82% of respondents feel housing prices are too high and have created a bubble industry. They might wish it were a bubble industry...if only it would pop.
- 68% say they cannot afford the prices
- 23% say they can find the money but....they would need to become slaves to their house.
- 46% wishfully think the prices will drop - there are ALWAYS more people in China than there are housing units. Prices will NOT drop.
- 33% blame the government
- 36% blame property dealers
- 23% blame the problem on supply and demand.
Chinese property agents cashing in on market
The 2006 China Forbes Millionaire List has 20 of 50 people cited real estate as their core industry or one they make money from. The Huren Millionaires List has 6 of the top 10 rich people in China directly involved in real estate and two more listing real estate as an important business sector.
Special Report
Forbes 40 China
Forbes 40 China
New Year not in China
The Chinese New Year also known as the Lunar New Year or the Spring Festival is the most important of the traditional Chinese holidays.
Chinese New Year:
Falls on Sunday, February 18 in 2007
Falls on Thursday, February 7 in 2008
China real estate- useful web sites and resources
- Interesting articles and information for investors China-Window
- An extensive source of information on China, its politics and society China Today Official web site of the Chinese embassy London
- Beijing Capital International airport information-Beijing airport
Are you looking to buy property in China ? Hongkong
Are you looking to rent property in China ? Shanghai , Beijing , Guangzhou , Haerbin Shi , 上海市
Author
Carol McDonald