[photopress:commercial_real_estate_reflections.jpg,full,alignright]According to the latest report published by global real estate service provider Jones Lang LaSalle, China´s commercial real estate transactions leapt 68% year-on-year to $9.2 billion in 2006 making it the third largest in the Asia-Pacific.
Take a step back and think of that rationally and it is a totally amazing figure.
If in 2005 it was thought that the commercial real estate market was a tad over-inflated, which it was, what view can you take when it then leaps 68%?
Some serious searching on the Internet has not found a parallel example where the currency has remained stable and the deals have rocketed in such a fashion.
It does not end there. The report also says that China will play a more active role in global real estate markets after Chinese insurance capital and the state foreign exchange reserve get approval to invest in overseas property assets.
Jones Lang LaSalle predicts that China will become a commercial real estate market as large as that of the US, the UK, Germany and Japan in five years from now.
The company says once the Chinese government loosens control on insurance capital, about $24-36 billion of this capital will flow into the real estate market. It may be that suggestions the real estate bubble will burst have not taken this fully into account.
Source: Asia Property Report