Beijing and Shanghai are two cities presenting significant property investment opportunities for British buyers. The cities recently sold two pieces of real estate that were estimated to be more than GBP 2.4 billion in total costs, the Global Property Guide reported, and property firms are getting more aggressive in their approach to buying up land.
In Beijing, a record deal of 33,800 yuan per square metre was recently recorded, estimated to be worth GBP 249 million (approx). Shanghai has also enjoyed the sale of its highest priced parcel of land at 36,000 yuan square metre, coming in at approximately GBP 273 million. According to Chen Guoqiang, vice director of China Real Estate Society speaking to China News Daily, this is because of the strategic location of these pieces of real estate.
What's more, a slowdown in the first half of the year in Beijing and Shanghai, not to mention the municipalities of Guangzhou, Tianjin, Chongqing, Chenghu, Wuhan, Changchun, Nanjing and Hangzhou, has made the government eager to increase activity in the market. "Because the land deals in the first half of this year were not good, local governments have been in a hurry to release new land extensively at the year's end, among which are many good land parcels," Mr Guoqiang said.
Global Property Guide reported that national house brokerage and state-run research group Centaline recorded the highest transfer of real estate to a private owner by local governments, with an estimated total of 653 hectares changing hands. Real estate firm China Vanke Co Ltd has been taking advantage of the current environment, including low land prices. The country's top real estate firms are estimated to have broadened their land banks with about GBP 8.35 million in first and second tier cities at the beginning of the fourth quarter.
For British investors, the real estate climate in China is a favourable one, especially if broadening international portfolios is the top priority. While real estate can be achieved at a lower price than in previous years, the market is incredibly competitive at the moment, so people must act quickly to obtain prime real estate spots.
- Tuesday 04 December 2012