Understanding Underlying Trends
Understanding trends underlying economic growth is important for investors and investment managers in real estate. Those investing with these trends in mind become rich and successful; betting against them usually results in losses and unhappy clients.
In my April Publisher’s Note, I mentioned several main trends in Asia; urbanization was one of them. The urbanization process is common to most Asian countries, and the official statistics on urbanization in China are very impressive. From 1949 to 2008, the number of cities increased fivefold and the urban population grew 10 times larger. According to the Chinese Academy of Social Sciences, within two or three years, half the country’s population will live in cities and towns.
Many analysts mention urbanization as a powerful trend creating demand for housing in Asian countries, and I, perhaps along with many other readers, have created an image in my head of happy rural dwellers moving to the cities, snapping up prop