While China’s stock market volatility and slowing growth have received the lion’s share of media attention so far this year, the country’s housing sector slowly but steadily has been shedding the excess supply that has dragged it down the past couple of years.
From the Current Issue
Before investing in China’s real estate market, investors should mitigate around the three key risks facing the sector: the well-covered economic slowdown, the debt-laden real estate sector and the overwhelming supply buildup.
China’s massive economy is transitioning to being consumer-led, and there have been — and will be — some growing pains along the way. Recently, Institutional Real Estate Asia Pacific senior editor Jennifer Molloy asked a number of experts on China their opinions about the country.
Chinese investors have long looked to real estate as a core investment, as evidenced by the flow of Chinese capital into the US real estate market in recent years, with Real Capital Analytics reporting an increase of such capital flows from US$748.4 million in 2010 to US$10.0 billion in 2015.
We are facing a period of inflection points. Everyone is focusing on the short term, but looking longer term, the future will be quite different from the past.
Beijing-based Dalian Wanda Group Co has plans to invest more than €3 billion (US$3.3 billion) in EuropaCity, a retail and leisure project to be built on the outskirts of Paris by 2024.
The Canada Pension Plan Investment Board has formed a 50-50 joint venture with Singapore-based Global Logistic Properties, its second with GLP, to invest in logistics assets in Japan.
After a rough start to the year, Asia Pacific and global property stocks recovered slightly during February as a safe haven play, with the broader equity markets remaining weak against continued global growth concerns.