One of the world’s best investment opportunities now is in China’s real estate market. The country’s property sector has been on a sizzling streak since late last year (2015), when the government relaxed its rules for foreign investment in the market. To make the most of the opportunity, here’s what you need to know about investing in property in China.
Red-hot real estate
The housing boom has spread from first-tier cities such as Beijing and Shanghai to second-tier ones such as Xiamen and Nanjing. In September, home prices in 70 major cities across China increased by an average of 9.3 per cent year-on-year.
In fact, in China’s top four cities – Beijing, Shanghai, Shenzhen and Guangzhou – housing prices soared by an average of 31.9 per cent as compared to last year.
While several cities have rolled out cooling measures to prevent homes from becoming unaffordable, and to prevent housing bubbles, most analysts believe that property prices will continue to climb, especially in second and third-tier cities.