The Big Call

Real estate cools

  • Published 28 Jul 2011

A mix of government restrictions, rising developer credit costs, climbing mortgage payments and slowing property transactions appear set to cool most areas of China’s real estate market.

With signs that investment in China’s high-speed railways may slow in 2H11 (see Forbidden City and Best of Chinese Commentators), the outlook for investment in real estate becomes an increasingly important determinant for fixed asset investment growth this year. The property market is always a tough one to fathom, given the size of the country and the conflicts that exist between official and consultancy statistics on transaction volumes and price fluctuations. Our researchers in seven provinces have spoken to local property agents, developers, homeowners and others to gain a sense of where the housing market is now and how it may develop in 2H11.

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China Confidential Funds, a new research service launched by FT China Confidential, is dedicated to illuminating the mainland fund industry. Our team of fund industry experts in Shanghai search out the interesting trends in fund performance, strategy, interactions with overseas funds, regulatory changes, distribution and management. We also use a proprietary system to track the emerging flows of Chinese money. Click here to find out more.

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