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Investing
in Shanghai property market can undoubtedly
fetch handsome returns in the form of rental
income, since it is highly westernized because
of its long tradition of international trade
as well as European influence.
Now we will discuss some of the prime reasons
that attract savvy investors to invest in
China real estate, which include:
- First of all, China boasts of one of the
world's fastest growing economies
- With the set up of the World Trade Organization,
China has now become the leader of the global
economy
- Real estate prices in many of the cities
in China such as Shanghai are presently one
third of other world's global cities such
as New York, London, Tokyo, and Hong Kong.
This is perhaps due to the explosive number
of foreign direct investments per year
- Shanghai in China has been chosen as the
venue to host some parts of the 2008 Olympics
- In contrast to other countries in Asia,
China has very low crime rates. This in turn
makes the country a safe place to live in
- Above all, the country is welcoming for
westerners due to highly educated, amicable,
and well mannered Chinese people
Investors interested in investing in property
markets are categorized into institutional
investors, commercial property investors,
and residential property investors. Institutional
investors fall under the category who is interested
in investing in high rise office complexes
as well as latest retail units, due to their
increased demand and chances of shortage in
future.
In the case of commercial property investors,
they invest largely in properties such as
small office spaces and commercial lands.
When comes to residential property investors,
they mostly invest in residential properties
including villas, condominiums, apartments,
single detached houses, townhouses, and serviced
apartments. Some may invest in these properties
to sell them in future when their prices rise,
while some invest them in order to rent it
out and yield good profits.
The price of a property in China varies depending
upon the nature of the property and the area
where it is situated. For instance, a standard
apartment in Puxi near Shanghai is about RMB
20000 per square meters. On the other hand,
the price of a serviced apartment attached
with high end amenities and facilities may
go up to RMB 30000 per square meters. According
to certain recent reports, the price of a
60 square meters studio in one of the posh
areas in the country starts from about 90,000
Pounds.
People who are interested in real estate in
China can either invest it in property itself
or via a REIT (Real Estate Investment Trust),
which in turn is a firm that invests its assets
in real estate holdings. One of the prime
benefits of investing through REIT is that
they offer tremendous tax benefits, since
investors need not have to pay any tax over
the dividends. Another great benefit is that
investors can buy or sell them just like stocks.
Above all, no minimum amount has been set
in order to invest in a real estate investment
trust.
There are a number of real estate firms in
the scenario in order to help you find your
dream property in China. These firms undertake
a range of services in connection with real
estate, such as, market analysis, advertising,
negotiation with sellers, and providing the
services of professional attorneys in order
to check the authenticity of documents pertaining
to property. |
