China Real Estate Market Outlook for 2021
China’s real estate market has grown greatly in the past years and is a key component in the Chinese economy. We’ve seen both ups and downs with a big correction in 2015-2016, during the stock-market crash.To get more China real estate news, you can visit shine news official website.
Currently, China’s economy has slowed down and we see an escalating trade war with the US. Besides, the COVID-pandemic had a negative on the market as countries were forced into lockdowns and investors became cautious.
With that said, China rebounded quickly and there were no restrictions of movement at the end of 2020. Besides, the country will be important for a quicker economic recovery in not only neighboring countries, but to the global economy as a whole.
In this article, we take a look at how China’s real estate market has performed in the past years and what the predictions are for 2021.China’s real estate market is an important driver of the Chinese economy and accounts for 30% of the total GDP. The market is also one of the fastest-growing markets in the world currently.
As prices have surged since the 2000s, setting foot into the housing market has become popular to gain wealth. Many of the luxury goods and sports car you see in places like Shanghai (there are a few) is bought with money made from real estate.
According to the National Bureau of Statistics, the major cities have seen higher increases in residential house prices. This is mainly the case for first-tier and second-tier cities like Shanghai, Beijing, and Shenzhen.According to Savills, the average price for high-end apartments increased to a staggering amount of RMB 96,915 in 2019. Again, keep in mind that this is for high-end and not general units, but the amount is still astonishing.
The capital is well-known for having prices similar to that of Shanghai and Shenzhen as it accumulates interest and capital including everything from investors, families, and corporations.CEIC, on the other hand, reported that average prices for houses overall increased to RMB 39,448 per square meter in November 2020, up from RMB 38,965 per square meter just a month before.In fact, Shenzhen has seen some of the fastest price increases in the world. By the beginning of 2019, prices averaged at as much as RMB 55,632 and where much capital is concentrated in the affluent area of Nanshan.
PwC’s yearly analysis in the report Emerging Trends in Real Estate Asia Pacific 2021 also claims that Shenzhen will see some of the highest rental increases in 2021, just behind Singapore and Ho Chi Minh City.Many of us have the impression that Shanghai and Beijing house prices are the most expensive. But the fact is that Shenzhen has outranked these cities with prices growing immensely in the past years.
Many people in the West haven’t even heard about this dynamic tech- and financial hub that becomes increasingly important to China as a whole. It’s become one of the major financial hubs, it’s closely tied to Hong Kong, and with favorable policies.It was the first city to open up to the foreign world in 1978, thanks to Deng Xiaoping, and grew with an astonishing rate of 40% per year from 1981 – 1993.