| The
potential for property investment in China is huge because
the Chinese economy is the fastest growing economy in the
world and spans multiple sectors - one of which is real estate
- and because the Chinese government are seeking to target
overseas investment and have changed the laws to allow foreign
purchase of Chinese real estate.
Furthermore an investor has both the commercial
and residential property markets to consider for his portfolio
and also has both local and foreign demand for property in
China to target for income and profit.
The foreign freehold potential in the property
market in China is in its infancy so while policies develop
and are refined, an investor taking his chance today will
benefit from a maturing market and fantastic predicted gains
over the medium to long term.
An investor should be aware that only certain
developments and properties are available for sale to overseas
buyers and that a local lawyer should always be instructed
when purchasing property in China to ensure that everything
is correct and legal with the sale.
The majority of the most attractive residential
and commercial developments in China are centered around Shanghai
which is the business and trade hub of the entire country
and where in excess of 30% of the countries taxes are generated.
Other interesting cities for an investor to
consider are Beijing, Guangzhou, Tianjin, Shenzhen, and Dalian
but Shanghai stands out most because it is the fastest growing
city in the world in terms of its size, population and output.
As a result of this fact Shanghai is an incredibly
exciting, multicultural hub that embraces the best of ancient
China and the best of the modern world. A number of large
international companies are establishing their Asian bases
in Shanghai, employment prospects in the city are good and
getting better, the population is growing rapidly in size
and purchasing power and creating an insatiable demand for
residential real estate.
The government of China is actively encouraging
foreign direct investment into Shanghai with a focus on residential
real estate development to combat the growing demand/supply
issue - therefore the market in Shanghai is currently ripe
for property investment.
If you need further convincing: -
It’s currently fact that property prices
in Shanghai are undervalued when compared to other great cities
worldwide, this will likely change as the wider world learns
of the attraction of the city and the potential for profit
in Shanghai and subsequently the demand for property further
increases.
Demand for property in Shanghai will likely
surge following the promotion of the city during the 2008
Olympic Games and the 2010 World Expo.
The Chinese government has just released the
country’s currency from its US dollar ties because the
ties were keeping the Yuan undervalued by up to 40% - this
will start to increase the intrinsic value of property assets
held immediately and for the short to medium term.
And finally, the Chinese Housing Reform has
been increasing local real estate ownership figures by around
10% annually creating a huge local market for a property investor
to target and rely upon to strengthen in purchasing power
and demand.
Investment conditions are ripe and the long
term prospects for the profitability and sustainability of
the Chinese property market are exceptional.
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