Effects of Chinese government restrictions on Chinese developers.

by paul on June 11, 2010

In 2009, real estate operating performance of listed Chinese developers had outstanding performance of assets, income,  rapid growth of profits, reduced inventory digestion cycle, and significantly improved cash flow situation.  New government restrictions  on the property market created serious financial pressures and rapid decline in investor confidence.  This despite last year’s groundbreaking receipts and the carry-over revenue to 2010. If the central government continues the real estate strict control policy, 2010 performance of listed real estate companies will show a slowdown in the scale of expansion, slow inventory turnover, liquidity, and increased risk.

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Chinese real estate developers

by paul on May 10, 2010

According to Thomas Flexner, CITI global head of real estate, institutional clients group, some Chinese developers could encounter tough times due to the government policy raising property purchase from 40-50%.   Mr. Flexner believes that the developers themselves are more of a risk than individual buyers.  However, long term, few doubt that Chinese developers are gaining ground.  Major real estate invstor, Wang Shi recently predicted that, five years later, 10 of the top 10 developers in the world will be Chinese.  Wang Shi is also chairman of Vanke Co the largest developer in mainland China.   Brash prediction that could ultimately turn out to be accurate.

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Shanghai Real Estate discounts becoming the rule?

May 7, 2010

Everyone has been holding their breath since the government moved to cool prices.  It looks like the ice is starting to thaw.  Evergrande Real Estate Group initiated a 15% discount on prices on many properties across China. There is a strong feeling among the general public that this will unleash a torrent of discounts and [...]

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Effects of government purchase policy requiring 50% down

April 25, 2010

Chinese citizens or overseas Chinese which can prove their ancestry have been very active in the Shanghai market in 2009-2010.   The new government policy requiring 50% down for purchase and no mortgage for a third property has not had a huge effect so far as the buyers of high end real estate are very [...]

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On the importance of thinking local

March 19, 2010

Foreigners selling and Chinese buying is the story of 2009 and 2010.  This trend has been reported in some circles but the full implications and how it affects the market have not received their due.   I got to thinking about this after a conversation with a Spanish client.  He was selling his property in a hurry [...]

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Chinese government to introduce property tax?

March 7, 2010

In an effort to control rapidly rising property prices and the practice of purchasing several properties and leaving them empty, the Chinese government is now debating introducing an annual property tax in the National People’s Congress.    Initiating a property tax would give local governments revenue regardless of property values.  (Currently local governments receive a large [...]

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Jim Chanos declares China to be Dubai X 1,000 or worse. Important factors for and against below

February 3, 2010

Indications that it is not a bubble:
1. Average household income: $126,000 New York Manhattan – 35% tax compared to average after tax income of $12,931 in Beijing. (Manhattan 6.3 times China).
2. Chinese income is expected to double, again, in the next 6 years.
3. Chinese only pay (an average of) 10.3% income tax.
4. Beijing average [...]

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International Investors taking advantage of dollars’ plunge

November 23, 2009

International investors are coming out in droves to purchase US real estate.   Lower prices, the dollars value and widespread expectations that the US market is turning around are fueling this trend.     Luxury properties in downtown areas where public transportation is common seem to be in favor.

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ServicedChina.com

November 4, 2009

Anyone looking for a solid services provider for relocation services, property management, door to door international moving, maids and housecleaning services, Chinese visas, health insurance, look no longer.  ServicedChina is a one stop shop for HR departments and expats alike.    Marion Wu hired the top English speaking talent at helping foreigners in Shanghai for each [...]

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Shanghai Real Estate Group on Linkedin

July 11, 2009

Shanghai Real Estate Group (powered by SaloHomes.com) offers benefits to our members such as regular property news updates, exclusive access to our global research reports and regular property seminars where members can join in discussions online, come together in the real world, discuss opportunities and listen to speakers from the world of Shanghai property. Shanghai’s [...]

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