Property market in china will continue to grow

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by Kay Murchie

During the last quarter, private equity funds were seen pouring into Asia, particularly China, despite the central government announcing stricter enforcement of China’s land appreciation tax and other measures.

According to international law firm, Jones Day, during 2006, approximately $650 billion of worldwide property transactions were done, 15% of these took place in Asia. This year, it is anticipated that deals in Asia will have the scope to grow and China will be at the centre of this.

The firm believes that the real-estate market in China will continue to grow since the stricter enforcement measures have only been applied in major cities such as Shanghai and Beijing.

It is anticipated that China’s new property law should be passed this year boost private ownership. China is in the middle of a growth phase and Chinese companies will be active during the latter half of the year with mergers and acquisitions evident.