grossreal said:
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3. one thing which has not been mentioned is growth but I will for guangdong, the markets value is currently growing at about twice that of perth and perth is our hottest market
macq listed trust asia 2 is in this market and macq has just opened an office for this market.
most of the steel and concrete thats being sucked out of australia is going to this market.
the growth for the next 5 years is ear marked to be in excess of 25% put that and the fact that your investment money stays here and is similar to an equity lend on a term deposit.
As this section is caveat emptor, for those newbies, it means buyers BEWARE. It is important to note that parts of China are undergoing property bubbles at the moment or have burst, and this includes Guangzhou (formerly Canton) which is the capital city in Guangdong Province which this poster is trying to sell to YOU. Meanwhile Shanghai property bubble has burst!
see the article below
http://en.ce.cn/Industries/Property/200601/26/t20060126_5953374.shtml
Shanghai property bubble burst: UBS
Last Updated(Beijing Time):2006-01-26 11:49
Shanghai property bubble has burst which will mean a difficult couple of years for the city's developers, but it will not mean a problem for China as a whole, UBS chief Asia-pacific economist Jonathan Anderson said.
"The (Shanghai property) bubble has already burst ... the top end has come down and volumes have slowed. ... and I think for the greater Shanghai region - for high-end residential and high-end commercial properties you may have a difficult year or two ahead," Anderson said, noting that prices could stabilize or come down.
UBS does not see any real problems for the rest of China, although here are
some isolated pockets where real estate prices are showing bubble-like qualities, specifically noting Guangzhou and parts of Beijing, he said.
"If you look at nationwide indicators we don't see any signs of trouble - prices in Shanghai at the peak were rising 30-40 percent a year, but if you look at prices nationwide they were rising six or seven percent per year and rising very very stably and sustainably," he said.
He noted that this national rate of increase for real-estate prices is at a slower pace than the rate of income increases.
"Everything outside of the greater Shanghai region looks alright, is the bottom line," he said.
Anderson was speaking to reporters on UBS's 2006 estimates for China. He reiterated that the bank is expecting a recovery in construction and infrastructure spending, which together with continued buoyant consumption and export momentum, point to an improved domestic demand outlook for 2006.
This also means faster import growth, and thus a falling trade balance.
The result is a better environment for domestic industries - but also lower headline GDP growth, he said.
The bank is expecting average real GDP growth of 8 to 8.5 percent over the next five to 10 years. But it does not see a repeat of 1997-98 as a strong possibility, when -- by UBS estimates -- the economy was only growing at 2 to 3 percent at the trough, Anderson said.
"The forecast implies a soft landing for the economy: growth staying near trend; profit margins troughing; and no sharp inventory build-up or excessive unemployment pressures," he said.
Anderson said he is expecting a recovery in spending, in construction and an end of the excess capacity cycle in China.
"For the past 12 to 18 months China has been in a virtual recession in areas like property construction and infrastructure spending," he said. "The tightening that we saw in 2003 and 2004 was very aggressive in these areas, a lot of projects had their financing cut off."
He said there have been signs of a pickup in these areas in the past "two or three" of quarters and that the bank is expecting increased spending on machinery, steel, cement, aluminum and other areas.
With demand picking up in these areas, which had been previously considered overheated, there will be an improvement in margins and profitability from the second half, he said.
Source:Shenzhen Daily
) Property market ...