[photopress:Beijingproperty8.jpg,full,alignright]Because of China’s rosy economic growth and more restrained land supply in 2007 some experts forecast property prices will continue to grow next year.
According to Zhang Xin, chief executive officer of SOHO China, property prices are likely to continue growing next year despite a slew of macro policies introduced this year to rein in the overheating sector. Since the government released a regulation requiring 70 per cent of residential apartments to be less than 90 square metres, quite a number of real estate projects have either been adjusted or postponed, further dragging down the supply and making property prices rise even higher.
Li Yanhua, chief risks officer of Taikang Life Insurance, is quite optimistic about the future of China’s commercial properties. He said, ‘We have bought several commercial buildings this year and will further strengthen our investment in this sector, even in some big and medium-sized cities.’ He explained that insurance companies’ liabilities are mostly long-term, so finding good long-term assets to match is vital, and real estate projects are among the best choices.
He said, ‘My confidence in China’s real estate sector is based on the country’s growing economy and limited land supply, especially in those hot areas.’
Chen Fan, managing director of the investment arm of Standard Chartered, said at the Annual Forum of Caijing Magazine, ‘China’s property prices will definitely continue growing. China’s urbanization and the galloping forward of the gross domestic product (GDP) will shore up the property price.’
Source: China Daily