Friday, November 22, 2013

Chinese estate investor and estate agency move their investment to western markets

Chinese estate investor and estate agency move their investment to western markets 

Last week, Shiyi Pan, the chairman of SOHO China, set up for selling three real estate they owned but haven`t been built in Shanghai, which is worth at least 500 million Chinese Yuan in total.

Chinese real estate markets growth at an unreasonable pace during the past 15 years. The average price for one square meter increases more than 20 times. So many estate agencies even profit by not developing the land they brought, instead just waiting for years and selling it again. They look like dealers rather than real estate developers. In such a good market, why one of the biggest real estate developers plan to exit Chinese market? In addition, the CEO of SOHO China just bought a residential building and 40% shares of an office building in Manhattan.

Someone says Shiyi Pan is following the myth person in Chinese investment industry, Jiacheng Li’s, the owner of Cheung Kong co., decision. Jiacheng Li’s begin to sell Chinese mainland real estate since August 2013. Since he is famous for investing over economic cycle, people tend to believe in his decision.

A Chinese real estate market is going to a really subtle period. After profiting such a high growth rate for more than 10 years, it has already taken so much social and economic problems into China. Everyone in China knows there are bubbles in Chinese real estate industry, but none of them know when will the bubbles broke, and what is the result. So investors begin to look for some more stable investment project. The U.S. economy is recovering from the ression. It has become the first choice of Chinese investors. 

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