Chinese real-estate: Time to buy?
Start out with an overview of the remarkable growth of the Chinese real-estate market (and it’s only been around for 10 years! 
And then consider that, because of government regulation intended to curb overheated growth, it is currently in a state of stagnation, but about to see further dramatic growth as demand exceeds supply by nearly 190%. Finally, note that foreign investors own as much as 15% of this (either directly or through loans, etc.), and as much as 23.2% in Shanghai.
Then tell me — is this the next big thing, or are we already too late? If China is in a similar slump to the rest of the world (but for different reasons), and even the government agency that instituted those regulations is predicting continued growth, perhaps China is as good an investment as any other likely candidate. And from the sounds of things, it would be easy to provide a differential product (concrete shells where you have to install your own plumbing?!) . Perhaps it’s time to start an investment consortium…
March 2nd, 2006 at 2:17 pm
Looked at the market over there, in my own opinion I think it’s still risky. If you do the sums, the population does demand for more housing. But I wouldn’t put my eggs in the basket unless I was fully aware of the risks involved. Is China getting more politicly stable?
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