Throughout the last five years of observing and reporting on the Shanghai flat and home market, one thing is sure. Shanghai property is beyond bubble. It’s post-bubble. Or even bubble-proof. Together with the trend in effect, also with property and land holding the investment for a middle class who don’t have sufficient money to replicate into further afield or Hong Kong, China housing is the hottest real estate market around.
Apartment shanghai is Asia’s London and New York when it comes to renting a property. The living cost in Shanghai is continually going up. One thing is certain — property agencies do well in the near future with Shanghai property market: notably Shanghai apartment lease is business.
On Wednesday, global property consultancy DTZ/Cushman & Wakefield said that Shanghai in particular will likely maintain double-digit growth in trade volume and value this year. The main buyers are national, but investors aren’t far behind.
Real estate investment prices, excluding property sales, are concentrated to complete $70 billion in Shanghai apartments in 2017, a 20 percent increase in about $58 billion final year, according to a report by Wakefield. One growing industry is demand for serviced apartments around Pudong district.
The report mentioned low capital costs in China (and in core markets like Japan) and also yuan depreciation expectations lending to fears that today is the time to get into the marketplace before the money value dives. The yuan is currency trading in 6.67, however, consensus estimates have it compelling closer to 7 at the next six months.
Insurance companies tend to invest in bonds. But when global bonds are currently yielding less than international percent and inflation is about 1% in China, that doesn’t leave a lot of growth for insurers who wish to have. Many U.S. cities have been on the receiving end of China life insurance company real estate investments, such as properties and apartment in Boston and the famed Waldorf Astoria. China’s Anbang Insurance now owns the nyc hotel.
In Shanghai, Chinese people still play the dominant role on the market. Of the $18 billion worth of property deals completed in the first six months of this year, 76 percent were sealed by national investors.
Investors are searching for income. Office buildings continue to be the most sought-after properties, accounting for nearly 60 percent of the total by value sold this season, Cushman data revealed.