Quote:
Originally Posted by anna2
Outside of the main cites on the east coast, where are the best places to consider investing in property? Is pisking the tourist hotspots likley to be a good starting place?
|
Stephen Chung of Zeppelin Real Estate has estimated total returns from the ten largest cities in China between 2002 and 2006. The spread is quite low, with the worst performing being Guangzhou (total return around 18.4% per annum) and the best performing being Tianjin (total return about 24.7%).
My own preference is for the Pearl River Delta area, particularly Zhuhai. This has (i) a strong infrastructure story (bridge from Hong Kong due in five years, fast rail link to Guangzhou already under construction, Metro system under construction (ii) a good location, close to Macau, Hong Kong, Shenzhen and Guangdong, (iii) a very clean environment with virtually no air pollution, and (iv) a mixed economy with a higher leisure and tourist sector than most Chinese cities. Property prices are still relatively low, with apartments in modern blocks in central locations available for under RMB 10,000 psm.
I believe that Tianjin might continue to perform well. Chengdu is building up its high-tech manufacturing and software sector, so should also perform well. Chongqing has great tax advantages and much central government support, as well as continued benefits from being the most recently created metropolitan area (independent of the provincial government, in this case the Sichuan one).
My colleague, who is currently researching property prices in China, has more information and would be happy to discuss investment opportunities with you,
Steve Hemingway,
Ming Wei Real Estate Investments