Chris Brooke

China’s real estate market will begin to recover in the second half of 2009, aided by easier government policies and rising investment demand according to CB Richard Ellis.

Chris Brooke, the global property services provider’s chief executive for Greater China. said, ‘One would hope that sentiment will recover sometime in 2009, and that we’ll get a more positive sentiment in the residential sector sometime between the middle and end of 2009.’

The outlook for property, which accounts for about a quarter of fixed investment, is critical for the overall Chinese economy.

The World Bank cited a depressed real estate market, along with faltering exports, to explain why it had lowered its 2009 growth forecast.

China’s real estate market began to falter late last year. The number of transactions has tumbled and high-end prices in some cities such as Shenzhen have fallen as much as 40%.

Nationwide, property inflation slowed to 1.6% in October. As recently as March, prices were rising at a double-digit pace compared with a year earlier.

However, Chris Brooke told reporters that some investors are looking at buying opportunities, tempted by a strong economic growth outlook in the medium term, attractive valuations in some areas and developers’ hunger for funding.

Brooke said he expected to see deals closing in 2009.
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Source: Reuters

        China low cost housing

The central and local authorities have taken a raft of measures in an attempt to expand domestic housing demand and boost the sluggish real estate market.

In the context of the aggravating international financial tsunami, these measures are also expected to tap the enormous domestic demand potential for a steady economic growth to help the country survive the upcoming global economic cold.

The government has long held that a booming real estate industry should help to solve and improve ordinary people’s basic accommodation conditions.

On Oct 30, the People’s Bank of China, the country’s central bank, made a decision to lower the benchmark lending and depositing interest rates for domestic financial bodies. It also decided to lower housing transaction taxes and extend a preferential interest rate to ordinary self-accommodating purchasers.

Days later, the State department in charge of the country’s housing fund also announced its decision to raise conditional home buyers’ maximum loan amount to RMB 1.2 million in some regions.
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Source: China View

       Beijing hutong

Beijing is to double its investment in the renovation of its ancient downtown buildings next year with a budget between RMB1.5 billion ($220.6 million) and RMB2 billion.

Vice mayor Chen Gang said about 20,000 families in the districts of Dongcheng, Xicheng, Chongwen and Xuanwu will benefit from the project, which will be focused on aging homes in dangerous condition.

Siheyuan, or courtyard homes, are common in Beijing’s hutong, or alleyways.

Their residents complain about leaking roofs in summer, fire hazards and dangerous electricity cables. They must also share water taps, electricity and toilets with neighbors, which sometimes lead to quarrels.
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Source: China View

          Goodwin Gaw

Gaw Capital plans to raise a $1.5 billion fund to invest in Chinese real estate.

It is planning to develop middle class and mass market residential property in secondary cities such as Chongqing, Dalian and Xuzhou.

Goodwin Gaw, chairman and co-founder, is also interested in investing in the Sichuan province Chengdu, where the Chinese government is pumping
rescue finance following the earthquake in May 2008.

Gaw is hoping to corral capital from large US investors and sovereign wealth funds, as he anticipates that China’s housing market will recover faster than other markets.

The fund will also target retail properties in China’s biggest cities.

The company, formerly called Gateway Capital currently manages two funds, Gateway China fund I and Gateway Capital Real Estate Fund II, with combined assets under management of $1 billion.

The first fund is completely invested and the real estate fund has invested approximately 70%.
Source: Private Equity Real Estate

Apartments in China

The newly promulgated Measures for Building Registration, effective as of 1 July 2008, complement the relevant provisions of the Property Rights Law and the recent Measures for Land Registration.

The building registration measures categorize buildings and structures that qualify for real estate title registration, and outline the procedure for creating and protecting an ownership interest in such real estate. In order to clarify owners’ property rights, certain certificates will bear proof of the holder’s interest in a building.

In general, registration is permitted as long as fixed boundaries, independent use and a sole serial number are provided for. Importantly, a forenotice registration of land interests under certain conditions will help protect the interest of the original purchaser.

The original article by Dr. Björn Etgen was first published in the November 08 edition of the magazine Asian Counsels.
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Source: Mondaq (enlisting required)