Goldman Sachs is in discussions to dispose of a residential property investment in Shanghai for more than US$300 million as it seeks to spin a profit in China’s property market before anticipated policy risks emerge next year, the South China Morning Post reported, citing unnamed sources close to the matter. The investment bank bought Garden Plaza on Hongqiao Lu, Changning district, from Japanese developer Daito Trust Construction for US$210 million. "The property has a stable rental income and has attracted interest from a number of mainland developers and foreign funds," the source said. Shanghai’s residential sales and leasing markets have been growing this year in line with an upward trend in national figures. According to a recent Savills report, luxury apartment rents in Shanghai increased 0.4% in the third quarter while luxury villa rents rose 2.2%. Market observers have for some time shown concern over rumors that Beijing might downgrade stimulus support for the property market in a move to preempt asset bubbles.
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