Although the domestic real estate market has entered into the fluctuation and adjustment phase at present, the domestic and foreign institutions are still confident in the real estate development in 2010. Some overseas investment funds have clearly expressed that they will invest in the domestic real estate market in China.
On Feb 4th, the relevant responsible person of the global real estate funds company-- LaSalle Investment Management Corporation subordinated to Jones Lang Lasalle told the reporter that, the company would have the “ice-breaking trip” in the domestic real estate investment this year, and they sought for high-quality real estate project with 2 billion dollars’ funds.
On the same day, REICO Studio subordinate to China Real Estate Chamber of Commerce pointed out in its 2009-2010 China Real Estate Market Report that, the sales price and rental price of the national commercial real estate would stay steady, and the foreign investors would expedite their pace of investment.
“We thought that the Chinese real estate market was rather “disordered” in 2009, so we didn’t make any investment.” the global strategist of LaSalle Investment Qi Haolun told the reporter that, this year the company would invest funds in certain regions such as Shanghai, Tianjin and Chongqing, etc.
The director of LaSalle Investment China Region Ou Weibang further revealed that, the largest scale of LaSalle investment funds would be 2 billion dollars in China with the investment cycle positioned as 5-7 years. “In a way, the “strong” performance of Chinese real estate market last year increased the confidence of many overseas real estate investment funds including our company, at present, some funds that withdrawn in 2008 from Chinese market began to return again.” Ou Weibang said.
“Although the release of State regulation policies increases the risk, we think after comprehensive analysis that, Chinese commercial buildings demands will maintain high-speed increase, and the residential buildings will tend to be balanced in 2010.” The Strategy Director of LaSalle Asia Pacific Region Zeng Jichong said 2010 was the ideal opportunity for the investment of real estate.
Some domestic real estate research institutions also have similar opinions. “In the long run, the commercial and business buildings market still has great demand and development potential. In the short term, the vacancy rate will increase slightly, but on the whole the sales price and rental prices of domestic commercial buildings will remain steady in 2010.” Dr. Liu Lin from REICO Studio said.
This report also pointed out that in 2010 the foreign-capital retailers would expedite their pace of expansion in Chinese market with more obvious intention to attack Chinese retail industry. The Class A cities such as Beijing, Shanghai, Guangzhou, Shenzhen, etc were the first choice of the retailers for expansion, the intensive site selection in the Class B, C and D cities will tend to be obvious with the change from coastal regions to the inland regions.
“The real estate market is not optimistic in my hometown America.” Qi Haolun said that the rise in the vacancy rate and decline in housing price in American real estate market would continue until the second half of this year, the economic recovery needed at least 3-4 years, while the rapid development in Asian countries such as China provided diversified investment opportunities for the global investors.