Published on 02 February 2006 at 05:12 pm
Filed in Property News for China » The Ongoing Success of China’s Investment Property Market
The Chinese Ministry of Construction has just released the most in-depth statistical analysis of China’s investment property market for the past five years and the findings reveal just how successful the real estate sector now is in China.
According to the Ministry’s findings the levels of national and international investment into both rural and urban property development in China have increased annually since 2001 and by the end of 2005 over 90% of all property transactions in China were in the private housing sector.
The numbers of Chinese citizens to have invested personally into property in China doubled between the turn of the century and the end of 2005 which highlights both the growing wealth being enjoyed domestically as a result of the surging Chinese economy, and also the fact that growing numbers of Chinese people are embracing their right to own freehold title to real estate in China.
For the first time in the Chinese housing market a substantial residential resale property sector has emerged because of the intensity of demand for residential property by both domestic and overseas purchasers. The entire property market in China now accounts for over four and a half percent of China’s GDP and this percentage is increasing annually according to the Chinese Ministry of Construction’s findings.
The findings were published by the Chinese National Bureau of Statistics in January 2006; the initial report by the Ministry of Construction was commissioned to determine what effect if any the Chinese government’s 2005 restrictions on the supply of land and property in China had had on the overall market sector.
According to the report the government’s attempts to slow down the growth rate in the Chinese property market and prevent speculative real estate investment have been successful but have not damaged the overall health and popularity of the Chinese real estate market.
The changes made by the Chinese authorities in April 2005 to reduce speculative market activity slowed price growth down to an average of 6.8% in China’s major towns and cities but have not restricted the overall demand for residential real estate particularly in the low to medium price bracket. The effects were what the government predicted and they bode well for those who are prepared to commit to the property market in China for the medium to long term.
