China to be world's top commercial real estate market in five years
Wednesday, 6 June 2007
BEIJING, June 5 (CEIS): China's commercial real estate transaction grew by 68 per cent year on year to 9.2 billion US dollars in value in 2006, the third largest in Asia Pacific area, according to the latest report published by renowned global real estate service provider Jones Lang LaSalle.
The report also says that China will play a more active role in global real estate markets after Chinese insurance capital and state foreign exchange reserve get approval to invest in overseas property assets.
In 2006, China's real estate transaction made up 10 per cent of the Asia-Pacific total, next only to Japan and Australia in the region.
Jones Lang LaSalle predicts that China will become a commercial real estate market as large as that of the US, UK, Germany and Japan in five years.
The report says that overly high speculative investments have dragged down the economic returns on the properties in Asia and the Pacific area, but the profit margin still maintains at a relatively high level and provides abundant development opportunities.
The company says once the Chinese government loosens control on insurance capital, about 24-36 billion US dollars of such capital will flow into real estate market, home and abroad.
The report also says that China will play a more active role in global real estate markets after Chinese insurance capital and state foreign exchange reserve get approval to invest in overseas property assets.
In 2006, China's real estate transaction made up 10 per cent of the Asia-Pacific total, next only to Japan and Australia in the region.
Jones Lang LaSalle predicts that China will become a commercial real estate market as large as that of the US, UK, Germany and Japan in five years.
The report says that overly high speculative investments have dragged down the economic returns on the properties in Asia and the Pacific area, but the profit margin still maintains at a relatively high level and provides abundant development opportunities.
The company says once the Chinese government loosens control on insurance capital, about 24-36 billion US dollars of such capital will flow into real estate market, home and abroad.