Categorized | International

China’s Commercial Real Estate Sector on the Rise

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The CEO of SOHO China, the largest property developer in Beijing, believes that the commercial real estate sector in China has already experienced its worst levels of performance, and that the market can only rise from its current state.

 

There has been a great deal of criticism directed towards the Chinese national government over the last two years due to their stringent policies regarding the housing market. In order to prevent the market from forming a bubble and bursting, the government instituted various measures intended to prevent price growth. With credit tightened, and limitations preventing investors from buying multiple homes, the Chinese market has gradually declined since the policies were introduced.

 

The CEO of SOHO China claims now, however, that the Chinese government has relaxed its policies, and has allowed more credit to be issued. For the most part, the concerns about the residential real estate market have found their way into the commercial real estate market. However, the commercial real estate market has not been nearly as affected by the restrictive policies.

 

Office rents are up by as much as forty-six percent in the last year, and the vacancy rates across the country have fallen for the last four years.

 

There is no doubt that the residential real estate market will continue to struggle, as the government has made it clear that they are not easing up restrictions on that sector. However, the commercial real estate sector in China is clearly in a different position, and will continue to rise throughout the year.

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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.

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