Categorized | International

China’s Real Estate Executives Challenged by Changing Market

Please Share!

Executives within China’s real estate industry are struggling to adapt to the most recent restrictions set into place by the nation’s government. Even the most successful real estate moguls are having a hard time in the current state of affairs.

In an effort to prevent a housing bubble that led to the current struggles seen in the United States, the Chinese government imposed various restrictions and limitations on the housing market. Prices in China’s residential real estate market had been increasing to very high levels, and there was fear that such increases could be unsustainable in the long-term.

However, the drastic restrictions that were established have created a major decline in the housing market in much of the country. As such, many real estate agents, investors, and even moguls alike are struggling as a consequence.

Real estate executives are reporting that luxury residential real-estate transactions have essentially come to a halt. They attribute this decline to the policy changes that have now essentially eliminated any and all access to credit for real estate investors and developers.

While the Chinese government has used policy to essentially prevent the sales of higher-end homes, they have placed a strong emphasis on building and promoting low-income social housing.

In order to compensate for the losses experienced in the residential real estate market, many real estate executives are looking to the commercial property market in China to meet their bottom lines. In the case of Soho’s Zhang Xin, one of China’s biggest real estate moguls, she hasn’t spent a single yuan on residential property in 2011. Instead, she has invested over eleven billion yuan on commercial properties.

Please Share!

About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

Leave a Reply

Twitter Chat