Apartment Market in China 2013
The real estate market in China underwent a
strong evolution during the past two years, and 2013 is basically the
continuation of this trend. The important news is that the governement seems
capable of controlling the price increase and that the 20% or 30% rates of
annual growth both for rents and property prices belong to the past. These
growth rates alarmed the world for fear of a property price bubble – the
largest ever – in China and the authorities have taken strong measuares to
control the real estate market.
The market has therefore eveolved a lot in
a short time span, from price increase frenzy to moderate growth. This
evolution reflects the general situation of China's economy. The definitive figures
for 2013 are of course unavailable, but some reliable prospective can be
established.
A contrasted situation
The price growth in Chinese large cities is
quite different.
Residential rents growth in Continental
China's cities :
Beijing 2012 : 21,1%
Beijing 2013 : 12,3%
Shanghai 2012 : 1%
Shanghai 2013 : 1%
Guangzhou 2012 : 10%
Guangzhou 2013 : 8%
Capital values growth of real estate
properties :
Beijing 2012 : 26,1%
Beijing 2013 : 16,7%
Shanghai 2012 : 3%
Shanghai 2013 : 3%
Guangzhou 2012 : 3%
Guangzhou 2013 : 5%
Apartment and authorithies
This illustrates the success of authorities
action in some Chinese large cities, especially in Shanghai. The rents are
clearly under control and it seems that this new policy can be understood
within a larger scheme of developing Shanghai's neighboring countries such as
Suzhou and Hangzhou, which are now among the fastest growing cities of China.
Regarding Guangzhou and the Pearl River Delta, the prices are under control
there as well.
Regarding Beijing, the figures are bad from
the authorities point of view, it seems that the market has escaped any kind of
cobtrol and the price are still rising too quickly. This has consequances in
the city's development with more and more suburbs beiing urbanized since the
new Chinese middle class is now unable to rent a flat close to the main central
landmarks. This might be a sign as well of the health of the city's economy
that still attracts a crownd from all over China of people willing to settle
themselves there.
Overall in China, the trend will still be
the curbing down of the speculative market to favor owner-occupancy. This is
supposed to help the Chinese middle class to develop by havng apartments
downtown and have a new nice way of life of consumerism to develop Chinese
economy with interior demand.
Sources:
written by Jennifer
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