[photopress:property_housing_prices_soar.jpg,full,alignright]According to several large real estate service providers investment in Shanghai’s real estate market is expected to grow less rapidly and become more vulnerable to policy uncertainties in 2008.
According to Jones Lang LaSalle, after the government implemented the land appreciation tax and imposed additional restrictions on foreign investment in the sector, real estate investment saw a slowdown in the fourth quarter last year, with only one notable sales transaction completed in the city.
Lee Hingyin, director of Research & Consultancy at Colliers International (Shanghai), said, ‘Increasing monetary control and tightening policies are bringing more uncertainties, particularly to the investment market.
‘The investment market may feel the pinch, and it is likely that foreign investors will be more vulnerable to these policy changes this year.’
He also expects more severe measures from the government, which will significantly cool down the investment market.
James MacDonald, senior manager of Research at Savills China, however, said: ‘In the institutional investment market, it’s not necessary that new policies will be introduced and will affect the market in a big way. Instead, it is the more stringent implementation of previous regulations that has to be watched.
Chen Sheng, director of the China Index Academy, which tracks property prices, said, ‘The government’s tighter monetary policy this year is expected to have a negative impact on the real estate investment market, which is highly dependent on bank loans.’
Source: Window of China
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