[photopress:shanghaiaparetments_1.jpg,full,alignright]A survey released by Jones Lang LaSalle in Beijing has the heading Globalization Leads to Investment Boom. It states that foreign investment activities in Chinese property market reached a climax during the first half of this year. The report does not suggest the market has stopped growing. On the contrary, it sees it as a burgeoning market and China which remains very attractive to foreign investors. During the first half of this year, direct investment in Chinese real estate market was $4.75 billion, double the figure of the corresponding period last year.
First-tier cities such as Beijing and Shanghai became for foreign business people the most favored places for making investments.
Insiders (always willing to give an opinion as long as they are not named) say the ideal time has come for investors to buy luxury hotel-style apartments located in a good place in Shanghai.
Deng Wenjie, senior manager in Jones Lang LaSalle’s China office predicted that multinational companies would continue to expand their business in China. Follow his argument closely here.
As China further opens its finance sector, more A-class offices will be in demand.
As the number of foreign staff workers increases in China, it will stimulate the demand for luxury hotels and hotel-style apartments.
Meanwhile, people’s increasing disposable income and the ever-expanding middle class group will benefit domestic shopping malls greatly.
As the market becomes more transparent, it will attract more foreign investment.
Foreign investors who have a clear investment plan will further increase their investment in China.
As competition becomes fierce in the first-tier cities, investors will shift to the second-tier cities to seek for gains.
It does seem that a ferocious real-estate free-for-all could happen unless the government firmly damps it down.