Also visit us on:
Find us on FacebookTwitter Logo
China's Advantages

Huge Sales Market

With a sales potential of 1.33bn in population China is considered one of the world’s most attractive investment locations. The population growth rate was at 0.49% in 2010. Since China has an average age of 35.2 years and a large number of university graduates as well as students, 73% of all Chinese are in the working age range.

Through China’s rapid development combined with high urbanization rates a continuous demand for construction of new residential space results for the future. Because of these positive conditions great investment opportunities will arise.

In the past years, China’s reform policy has lead to a rapid growth of a free-spending middle class. Today about 250 million Chinese already belong to the middle class. By 2025, this number will rise by an expected 100%. This corresponds to 40% of the population and therefore to almost one half billion people. According to a DTZ analysis of real estate professionals, the estimated total demand will be at 6.8bn m2 GFA between the years 2008 and 2020.

Secure Financial Environment

Following many decades of effort China has succeeded in building up a stable financial system and implementing a number of reforms. In the USA for example a large real estate bubble has formed in the past 10 years.

Unlike Americans, Chinese do not have high personal debts. Mortgage loans only make up 12% of the Chinese economy, in comparison to 100% of the American economy. Banks in China also have relatively low claims towards real estate developers, amounting to only 7% of the banks’ outstanding credits, compared to 53% in the USA. The slowing down of the real estate market therefore does not represent a systematic risk for the financial system.

Before the Chinese house buyer decides to purchase an apartment, they save money, in order to be able to afford the monthly repayments. Based on factors of consuming and saving, and in view of their tradition, it is unlikely that the Chinese will observe their repayments, completely unlike Western clientele.