| China is the largest Nation on Earth with a population | | | | to 2005 this created a number of property hot |
| of over 1.3 Billion people and is also the Worlds oldest | | | | spots, resulting in a number of property bubbles. |
| civilization with a culture going back 6,000 years. | | | | The Chinese government were forced to introduce |
| Situated in and comprising the majority of Central and | | | | new legislation in 2005 aimed at curbing short term / |
| East Asia, it comprises two states: The Peoples | | | | speculative investment in the market place. This |
| Republic of China (including Hong Kong and mainland | | | | resulted in residential property prices falling by an |
| China) and the Republic of China (including Taiwan). | | | | average of 15% in 2005, with many of the short |
| Between them they border a huge number of Asian | | | | term investors forced to sell properties at less than |
| countries including Russia, India, Bangladesh, Vietnam, | | | | market price. While the short term investment |
| Burma and North Korea. China is vast and so is the | | | | concerns have been dampened in the short term, |
| choice of where to make an investment in China | | | | there is still great value and opportunity on a longer |
| property. | | | | term basis - with the government committed to |
| Culturally and politically China was ruled for many | | | | steadier long term growth, rather than short term |
| millennia by successive dynasties, including the Han, | | | | volatile price fluctuations. |
| Liao, Jin, Ming, Tang and Qin dynasties. During this | | | | Why invest in Property in China |
| period, the four great inventions of China came into | | | | As overseas investment continues to pour into China, |
| being and affect the lives of everybody: Paper; | | | | it is interesting that the government is looking to |
| Printing; The Compass and Gunpowder. | | | | take a greater control of the economy. Conscious |
| The Qing Dynasty ended in 1912 with the Republic of | | | | that an over heating economy is a recipe for medium |
| China. This was a time of great upheaval for China | | | | to long term disaster, a number of regulations were |
| and was dominated by in fighting before unification in | | | | introduced to slow down what could become an out |
| 1928 under the Kuomintang government. This was | | | | of control situation. |
| disrupted again by the intervention of foreign powers | | | | While the economy is strongly aligned with that of |
| and World War II, leading to the defeat of the | | | | the US, there are three major reasons for the |
| Kuomintang and retreat to Taiwan and the | | | | continued prosperity of the area and for property in |
| establishment of Communism as the dominant force | | | | China :- |
| politically, hence, the two countries and differing | | | | Overseas Investment |
| political structures. | | | | As long as the Chinese ruling party continue to |
| Geographically, mainland China is very varied but | | | | encourage overseas investment, the economy will |
| consists of large mountainous regions, alluvial plains, a | | | | continue to grow at a steady pace - currently |
| vast coastline and the great Mongolian plateau. The | | | | forecast at between 5% and 8% per annum. Cheap |
| two great rivers of the Yangtze and Huang He | | | | labor, available property and under developed |
| dominate the farming communities as they built along | | | | employment regulations add further to the |
| the shorelines. | | | | attractions for overseas investors. The fact that |
| Language is diverse but the most common dialect is | | | | many products are shipped to China for assembly, |
| Mandarin but others include Cantonese and | | | | then shipped back to their country of origin further |
| Shanghainese. Mandarin is considered to be the | | | | highlights the difference in labor costs. |
| language to learn as it is understood by the largest | | | | World Trade Organization |
| number of people verbally and is the only widely-used | | | | The fact that the Chinese government have decided |
| written language. | | | | to join the World Trade Organization offers valued |
| Although, due to Communism, the majority of | | | | security and confidence to many investors looking at |
| Chinese people consider themselves to be Atheist a | | | | the Chinese market. The strict regulations and |
| large number also consider themselves to be | | | | condition associated with membership of the WTO |
| Buddhist, Confucianist or Taoist. Because of the | | | | ensure an open and fair trading relationship (the lack |
| dominance of Confucianism in imperial China it still has | | | | of openness had been of concern for many investors |
| a major influence on the customs and values of the | | | | prior to recent years). |
| modern population. Also very influential was the | | | | Infrastructure Spend |
| long-standing Communist leader, Chairman Mao | | | | While it would have been easy for the Chinese |
| Tse-Tung, who took office in 1945 and led the party | | | | authorities to accept new investment, without |
| until his death in 1976. His philosophy and legacy may | | | | developing the country's infrastructure, much of the |
| have been tainted by accusations of despotism but | | | | inward investment and increased economic growth |
| his dominance is beyond doubt. | | | | has been re-invested into developing the aging |
| Modern China has tried to move forward and | | | | transport and services sector. The fact that much |
| embrace some forms of Capitalism and trade more | | | | need services and transport facilities are now |
| openly with the rest of the World, to the point | | | | available increases the potential investment |
| where it is anticipated that it may become the | | | | possibilities in the more rural areas of the country, |
| Worlds largest economy. As a country of immense | | | | which can have a major impact on local economies. |
| history it holds great interest for the traveller and its | | | | Outlook |
| growing economy make it an investment hot-spot. | | | | As the country continues to embrace the ideals of |
| Property in China | | | | overseas investment, while retaining strong influence |
| For many years the property market in China was | | | | on the local inhabitants, the economic situation looks |
| not open to overseas investors although this began | | | | better than it has been for many years. The strong |
| to change as the ruling party realised that they would | | | | alignment with the strong US economy adds further |
| need to attract outside investment and business to | | | | strength to the growth story, which after a period |
| rejuvenate a very stale and stagnant economy. | | | | of relatively low control, is now strongly influenced by |
| After building up closer relations with some of the | | | | legislative changes introduced by the authorities. The |
| powerful western companies, there was a natural | | | | fact that the authorities are willing to intervene to |
| progression from commercial property investment to | | | | avoid a boom and bust scenario adds further stability. |
| residential property in China. | | | | The location of the country, and influence over the |
| As the residential property market began to develop, | | | | Far East region ensures that China will remain at the |
| initially because of overseas investment and interest | | | | forefront of international trade for some time to |
| from non-nationals, there was a major increase in | | | | come. Perfectly situated for access by sea or land, |
| activity. In the more popular areas of the country | | | | and surrounded by some of the most important |
| such as Shanghai and Beijing, the presence of | | | | trading partners in the world, China is well positioned |
| multi-national business has swamped the residential | | | | to take advantage of the country's growing |
| market with companies willing to pay a high price to | | | | presence in the world market place. |
| house key members of staff. In the few years prior | | | | |