Category: China

Chinese Property Guide

China is all set to become the biggest economy in the world in the next few decades and many overseas property investors are now looking to China to pick up property before the boom. However with a population of 1.3 billion, where do you start looking?

The first choice of many property investors has to be China’s capital city Shanghai. Many multinational companies have already started locating their regional HQs in the area, and home to 21 million people, there are many different properties to choose from. Shanghai is also undergoing strong infrastructure and development improvements meaning it should be a strong place to invest in property.

Chinese goverment vows to boost property market

China has experienced some excellent property price growth recently, with the past five years seeing double-digits, however the latest figures show that the annual growth rate has plummeted to around 9 percent, well below most forecasts. The slowdown is thought to be partly down to global financial worries and some experts believe the slowdown will continue if China’s exports start to be affected.

The Chinese government have vowed to help boost the property market’s growth rate back up again by investing in even more infrastructure projects including roads, airports, nuclear power plants and hydro-electric power stations. Taxes on residential properties purchases will also be lowered.

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Shanghai restricts foreign property investors

Shanghai’s government is reportedly trying to open up the domestic property market by putting restrictions on foreign property investors.

The government is looking to ban all foreign investors and non-permanent Chinese citizens from buying property and real estate in Shanghai, whilst simultaneously working on a new property purchase system for non-permanent residents, although it is understood that workers on temporary permits would be exempt from the restrictions.

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Is the edge coming off China’s property market?

China’s real estate market is still booming and is netting some investors double-digit growth rates each year on their properties, even though the government has been attempting to stop the property boom.

Most investment has been in residential projects, accounting for nearly 3/4 of total monies spent. Industrial properties are still good investments, however they are growing at a much slower rate.