| China
is enjoying a boom in its real estate market with international
property investors and domestic buyers cashing in on the series
of housing reforms China introduced back in 1998 to boost
the economy and to allow local people and certain overseas
buyers the right to purchase freehold property and land.
Despite growing media uncertainty about the
Chinese property sector, industry experts and financial analysts
both believe that the property boom has legs to run - and
overseas investment into the real estate market in China and
in particular in Shanghai remains very strong indeed thus
supporting this theory.
There are three main factors that continue
to drive the domestic real estate market in China and they
are the demand for urbanisation to support industrialisation,
the almost universal local demand for better housing and the
rise in the numbers of local residents who can actually afford
better housing.
These three facts coupled with the aforementioned
housing reforms also continue to make the property sector
attractive for foreign investors.
If you’re interested in learning a little
more about China in a bid to determine whether the market
conditions are right for you to make an investment, here’s
our brief country guide to China to give you the background
information you need.
China benefited massively from having one
of the world’s longest periods of uninterrupted civilisation
and it is a country with almost 4,000 years of rich and colourful
history. It is an intriguing nation and one that has either
suffered foreign invasion or enjoyed overseas domination depending
on which period of history you examine.
Most recently China was a world leader in
advancing the arts and sciences until the early 20th century
when wars, famine, unrest and foreign occupation took their
toll on the nation and it fell to Communist domination under
Mao Zedong after WWII. His regime imposed severe restrictions
on the nation and its people which persisted until 1978 and
resulted in the deaths of hundreds of thousands of Chinese
people.
In 1978 Deng Xiaoping came to power; he and
his advisers began to change their focus to developing the
economy of China. They believed in putting the Chinese people
into productive employment and allowing them to take on household
responsibility in certain aspects of every day life.
The industrialization and development of China
through the increase in market orientated economic output
has resulted in the Chinese economy going from strength to
strength and the Chinese GDP has quadrupled since 1978. The
Chinese people who make up 20% of the world’s population
have subsequently benefited from a better quality of life,
higher standards of living and even more personal choice.
While political control in China remains rather
restrictive, its leaders are committed to preserving and further
developing their economy and to that end they completely support
direct foreign inward investment into the property market.
They have also recently imposed a number of
restrictions on the real estate market to prevent prices from
soaring too high too fast and the sector’s bubble from
bursting and so far all indications point to just one thing
- the Chinese economy is continuing to go from strength to
strength in all major sectors and China now remains second
only to the US in terms of the size of its economy.
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