China’s economic growth in real estate market stronger by the day
There is no doubt that market and property investment remains strong in China despite persistent setbacks caused by external interventions. This was proven at the recent Shanghai Spring Real Estate Exchange Exhibition, which serves as the pinnacle of property gathering.
High residential values and pricing added by strict government restrictions have caused real estate markets a series of ups and downs. The change is causing real estate market trends to become even more complex and at time confusing but it has not thrown the industry players off the track.
The exhibition plays a very significant role in the industry, especially with 2011 being the start of China’s 12th Five Year Plan (2011-2015). The Chinese property market remains the leading indicator of continuing economic growth.
Shanghai Spring is the first large scale real estate exhibition held in Shanghai during spring every year. Its ability to shape and influence the Chinese property market makes it a big attraction to the outside world.
This year, the exhibition featured over 100 properties and flats with participation from about 50 real estate developers. The exhibition was from March 17 to 20.
As national policy sets its sights on family-based residential properties, the investment-minded real estate industry is rebounding despite an adverse market climate. Storefronts, new housing estates in the tourism industry, high-end villas and overseas property investments are fast becoming mainstream purchases. Sufficient domestic liquidity and investment demand provides a wealth of investment choices.
Hundreds of overseas properties namely those from Malaysia, Singapore, Hong Kong, Korea, Japan, United Kingdom, France, Australia, New Zealand, United States, Canada, Switzerland and Spain are fiercely vied for in China. A majority of bidders are property developers and for at least 70% of them this was the first time that they are entering the Chinese domestic market. As a real estate investment haven for increasingly severe macro-economic control measures, investment oriented properties are becoming increasingly favored by investors.
Unwavering demand for smaller units is controlling housing market strictures and in an era or property purchasing restrictions, players are advised to seize the opportunity that falling home prices offer. Among the properties for sale, small sized real estate units were the most sought after. The event therefore showcased many economically sized units and hotel style apartment flats located adjacent to public transportation for sale.
The implementation of various government policies and rules has resulted in price discounting and property devaluation becoming increasingly common. However, Shanghai Spring has become the gold standard for taking advantage of this cresting tide in property prices in the wake of property purchasing restrictions.
Shanghai Spring has become a magnifying glass for observing industry trends and a weathervane for the domestic real estate sector.