30 July 2009
Demand for property in China is reportedly going through the roof, following the country’s decision to revoke the ban on overseas nationals buying property on the country’s mainland.
Consultancy firm, Landpower report that Hong Kong nationals bought between 11,000 and 12,000 residential units in the mainland in the first half of 2009, up 23% from the same period last year.
Booming residential prices in China has led to calls for banks to curb mortgage lending. The price of new residential property in 36 Chinese cities in China rose by 6.3% in the last year, according to data compiled by the National Development and Reform Commission.
“China's property market is recovering and prices should continue to rise in the third quarter”, said Zhou Hu, an analyst with Bohai Securities.
With genuine fears that a property bubble may be forming, the Chinese government may soon step in and introduce fresh regulations to help prevent residential prices booming on the back of greater speculative activity in the residential sector.
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Property consultant firm Jones Lang LaSalle project that property pries in Macau, a special administrative region of China and one of the richest cities in the world, are expected to grow by between 10% and 20% in the second half of this year, due to the regions’ thriving gaming industry and historically low interest rates.
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