[photopress:Pan_Shiyi_of_SohoChina.jpg,full,alignright]Stay away from residential properties. Concentrate on commercial developments. This is the advice of SohoChina, a Beijing-based property developer.
Chairman Pan Shiyi, seen here, in an interview in southern China at a gathering of business and government leaders, said, ‘Further macroeconomic controls will not affect us at all in our current focus on commercial developments. Tightening measures typically clamp down on the residential market, where the government’s afraid of speculation.’
The Chinese government aims to slow a surge in property prices and investment as it strives slow the economy, which expanded 11.1% in the first quarter. The government has restricted land supply, curbed loans to real estate companies and imposed new taxes.
The Chinese central bank has raised borrowing costs three times in the past year. According to a survey by Bloomberg News it may raise interest rates two more times this year and order banks to set aside more money to slow lending.
Source: China View