Tientsin China Real Estate
With property prices in China continuing to rise, skyrocketing real estate prices in Beijing, Shanghai, and other major cities are just the tip of the iceberg. Property prices in ten Chinese cities have fallen, with many turning their attention to the fact that developers in the leading Chinese cities have to sell properties for more than $15,000 per square foot just to break even.
This is mainly concentrated in the first row cities represented by Beijing, Shanghai, Guangzhou and Shenzhen. They are all located on the east and west coasts, which are relatively developed and densely populated.
At the same time, the total real estate market in China is counted to 68 and included in the study. To control real estate prices and promote more effectively an orderly development of the real estate market, we compared the efficiency of China's real estate markets with that of America, which also experienced many boom years, and with America. Tangshan (48%) was efficiency with 0.91%, Shenzhen (1.04%), Guangzhou (2.02%, Guangdong (3.01%). Moreover, this work compares the American real estate market with the US real estate market and the Chinese real estate market with the European one.
The conclusion can be summarized as follows: the weakest form of efficiency is not currently achieved and will not be until the end of the next boom years. At present, none of the major Chinese real estate markets, such as Tangshan, Shenzhen, Guangzhou, Guangdong, and other cities, has reached it.
Only 55% of China's population is urban, and the vast majority of them are in urban areas such as Beijing, Shanghai, Shenzhen, Guangdong, and other cities. Zhengzhou is now a thriving city, and there is much potential for growth, as it is now one of the largest cities in the world in terms of population. Combine this with the fact that there are a large number of investors who want to park money in the city, especially in high-end real estate markets such as Shanghai and Guangzhou. With an average of 1.5 million square metres per household, owners occupy more than half of all residential and commercial space in China.
Chinese cities with significant sources of income, this trend poses a challenge to local governments, which monopolize land sales and development in China. As a result, the value of the real estate market in Hangzhou has doubled in the last five years, with an average annual growth rate of 7.5%.
The central government clearly knows that local governments will agree to the collapse of the real estate market, but China's real estate markets must develop countermeasures. The following section identifies four specific policy areas that could address future Chinese ReITs. Then we proposed a number of possible solutions to the problems of the Chinese real estate market in Hangzhou and other cities.
First, we discussed the mechanism of building house prices, which provides a theoretical basis for testing efficiency. In combination with Tables 3 and 4, we can see that we can calculate the price-to-value ratio of the Chinese ReIT market in Hangzhou and other cities. This is a contradiction to America, as it is calculated in the United States, but not in China, due to the lack of available data.
To overcome the crisis, the Japanese government decided to implement loose monetary policy and encourage residents to invest in real estate, turning the Japanese economy into a bubble. Another element is that China allows tenants to buy their state-owned homes at a large discount - a policy that has led to China having the highest percentage of tenants with net assets of less than $10,000, compared to 64% in the US and the UK. In 2015, Shenzhen property prices rose rapidly, but it seems that the real estate market in Shenzhen is depressed compared to other cities in the first category. Beijing's house prices rose 15.6 percent to RMB52,500 ($7,619), and in 2015 alone the increase was nearly 50 percent.
The company will focus on the residential resale market and will work with developers in Singapore to market its properties in Shenzhen and other cities in the south of the country. Sunac China Holdings Ltd., a privately owned company, later agreed to participate in the restructuring of Tianjin Real Estate, but that plan was also dropped. The programme will focus on improving the company's competitiveness compared to other real estate companies in Hong Kong and Singapore.
Chinese real estate market and improving market organization, as well as promoting the continued urbanization of Tianjin and other cities in the south of the country, such as Shenzhen.
A 2008 report by the Chinese State Council, "Providing Financial Support for Economic Development," mentioned REITs as a new financing channel to help the real estate industry. In recent years, China's securities regulator has adopted a deliberately incremental strategy, analyzing the potential benefits of REITS as a tool for managing the country's real estate capital markets.