Commercial property price rise forecast for many Chinese cities | 29 May 2012
A number of cities in China are likely to experience rises in the cost of commercial property in the near future, it has been predicted.
Many property developers in the country have pointed out that the commercial property market is becoming flooded due to an influx of residential investors coming into the market.
Residential investors are increasingly switching to commercial assets after becoming frustrated with the residential sector’s sluggish state. It is this move that could cause prices to shoot up before the end of the year; perhaps making for a slightly bigger expense for investors but potentially a wealthier commercial marketplace overall.
Analysing the market, Evergrande Real Estate Group president Zhu Wusong told foxbusiness.com: “There has been a tremendous volume of construction in Chengdu, Shenyang and Tianjin, and we may see property bubbles emerge in these cities.”
According to ft.com, investment in Chinese commercial property rose 23.5 per cent year-on-year in the last quarter, despite sales falling by 14.6 per cent in the same period.
It has been reported that the majority of small developers are still managing to successfully negotiate the market without defaulting, so this may have helped towards the positive rise in investment.
Written by Joe Elvin on behalf of Qube Global Software
While posted by Qube Global Software all views expressed are not necessarily those of the company. All facts are verified where possible directly by the author.
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