Real Estate Investment Grows in Shanghai
Investment in Shanghai real estate has been on the rise, according to recent figures from the Shanghai Statistics Bureau.
Between January to October this year, investment in the city's real estate market has grown by 20.3 per cent, year-on-year. This translates into a total figure of 227.969 billion yuan and now accounts for 53 per cent of total fixed asset investment in the city of Shanghai.
During the same period, commercial housing sales experienced an increase of 34.2 per cent for an area of 19,147,500 square metres.
This is a positive result for the Shanghai real estate market, despite the number of property sales and the level of construction fluctuating throughout the year.
Furthermore, a recent report from the Urban Land Institute in conjunction with PricewaterhouseCoopers LLP identified Shanghai as one of the top investment cities in the Asia Pacific region.
The 'Emerging Trends in Real Estate Asia Pacific 2013' report found Shanghai was number two in the world as a spot for Asian investors.
Shanghai was only outranked by Tokyo, where real estate investors have been buying property in hopes of rising prices, according to the report.
Since the report began in 2007, Shanghai has only once failed to make the top two spots in investment prospects rankings, demonstrating the area's solid performance over the years from investors.
The city even reached the number one spot in 2008 and 2010 and surpassed Hong Kong and Singapore.
Kenneth Rhee, the Urban Land Institute's chief representative of mainland China, stated Shanghai ranked highly because the area is widely perceived as having a low-risk market for those who are not willing to invest in lesser-known areas.
The report stated Shanghai "offers a level of comfort to newly arrived funds" in the country.
One investor wrote that for those who aren't local to Shanghai, it's important for buyers to have the ability to find cities that are "definitely going to be winners". This explains the popularity of Shanghai as an area for real estate investment, as it is a major region with a strong market.
Although the Chinese government has tried to slow down rising prices for real estate, the market has seen high growth over the last three years. As a result, this has helped to make Shanghai an attractive place for investors.
For more information about investing in China's real estate market, contact Ray White Group at www.raywhite.com.