Shanghai Property Market 2009 Review and 2010 Outlook

Summary:

Colliers International just released its report Shanghai Property Market and 2010 Outlook covering recent developments in the city's property sector and projecting trends for the coming year.

According to the report, investors can expect continued strong growth during 2010.  The reports authors expect that the economic backdrop will see little downside risk on China’s property market in 2010 due to a favorable market cycle, coupled with the government’s continuation of  proactive fiscal policies and “moderately loose” monetary policy to support growth. These measures are expected to mitigate negative impacts inherent in the uncertainties on the external front amidst withdrawal of government stimulus in the advanced economies.

Policy adjustments on the real estate market will accentuate the supply side, while demand side measures will focus on curbing speculation and warding off financial risk of the banking sector. No adverse tightening is expected for fear of excessive dampening on market vigour.

The non-residential sectors will see relatively better performance than the residential sector in 2010, as the strong surge of the latter in 2009, coupled with the policy adjustments, will trickle down to some corrections in 2010.

The tightened financial requirements of developers in land bidding, together with the expected consolidation of the residential market in 2010, should help somewhat to cool down the land sales market." the report says.

For more information on Colliers International and its services, please visit http://www.colliers.com/Markets/China/ for more details.