China Real Estate
Question: What actions have been taken by Chinese Government to stabilize the market of Real Estate?
Answer: In 2010 Chinese government instigated a series of measures to control soaring prices, mainly by imposing restrictions on loaning and ownership.
Question: What is the result of the new policies for Real Estate?
Answer: The average prices wore down 0.3% from previous month in December 2010. Chinese National Bureau of Statistics recorded price declines in 53 of Chinese 70 biggest cities.
Question: What about the development of investment in real estate market?
Answer: Real estate investment grew around 28% in 2011. The year-on-year pace was 25% on October, 20% in November and 12% in December.
Question: Why investors are still interested in Chinese real estate market?
Answer: All the policies will just stabilize the property market in stead of creating a free fall.
Question: What is the outlook for Chinese real estate market?
Answer: It is expected that the policy of loan will be loosen and purchasing restrictions will be lifted. In addition, the appreciation of RMB has the effect of driving down the cost of imported construction materials, which in turn has the potential of increasing the profit margins of real estate developers.