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Chinese Second-tier Cities Are Ready for Real Estate Investment | |
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October 15, 2010 The Chinese government has announced a new round of cooling measures which appeared to take effect as the overall value of transactions plunged 60% q-o-q to US$19.46bn, according to a recent research by DTZ. China has ordered banks to impose a 30% deposit on home loans and stop lending for third or more properties as part of a new move to curb soaring real estate prices. As a result, the number of land deals fell by 60% and 46% in first-tier cities and second-tier cities, respectively. Second-tier cities recorded US$15.32bn worth of transactions in Q2, compared to that of US$4.13bn in the first-tier cities. "As the first-tier cities, such as Beijing and Shanghai, were experiencing limited availability and the high cost of urban sites, the hunt for higher yields continues to push investors to ever more distant frontiers. In 2009, developers and investors continued to shift their investment towards second- and third-tier cities, creating a powerful second-tier market. Dalian, Tianjin, Chengdu, Suzhou, and Hangzhou have been leading this trend, with Wuhan, and Changsha also readying themselves for investment," an analyst from Deloitte says. Allen Lau, Managing Director of Colony Capital, believes that fundamentally long-term demand for housing is still strong in China due to its urbanization and increasing disposable income and upgrade needs associated with it, second-tier cites are developing at a rapid speed and have great potential, people should be positive on the long-term health of the sector. Allen Lau will be speaking at the 5th Annual Real Estate Investment China Summit 2010 on the 1st and the 2nd of December in Beijing, China. About IQPC Worldwide: For over thirty years, IQPC has helped the world's leading corporations solve their business challenges through the sharing of practical industry solutions and global best practice. In the process, the company has built a formidable reputation for quality and value. The world's most progressive companies have benefited from IQPC's unrivalled global reach, which has connected international expertise with regional and local leaders. For more information, please contact: Wendy Mah IQPC Worldwide Tel: +65 6722 9418 Email: Wendy.Mah@iqpc.com.sg Source: http://www.1888pressrelease.com/chinese-second-tier-cities-are-ready-for-real-estate-investm-pr-248900.html |
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