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China Real Estate Market Outlook in 2019: A Complete Overview

China Real Estate Market Outlook in 2019: A Complete Overview China’s real estate market has grown immensely the past years and accounts for 30% of the total GDP. We’ve seen both ups and downs in the market, with a big correction in 2015-2016.With an economy that has slowed down, and with an escalating trade war with the US, it will be interesting to see how the market is set to perform in 2019.To get more shanghai real estate, you can visit shine news official website. In this article we take a look at how China’s real estate market has performed the past years and what my predictions are for 2019.China’s real estate market is one of the fastest growing in the world and a main driver of the Chinese economy. As prices have surged since the 2000s, setting foot into the housing market has become popular to gain wealth. Many of the luxury goods and sports cars you see in places like Shanghai (I’ve seen plenty of them) are bought with money made from real estate.According to the National Bureau of Statistics, first-tier and second-tier cities like Shanghai, Shenzhen, and Beijing have seen higher increases of residential house prices. To give you an overview, I’ve listed the average real estate prices in RMB/square meter from 2013 to 2016 below. The numbers speak for themselves.Many of us have the impression that Shanghai and Beijing have the highest property prices on average. Let’s think again. Shenzhen has outranked these cities with prices growing immensely the past years. Many people in the West haven’t even heard about this dynamic tech- and financial hub that becomes increasingly important to China as a whole.It’s one of the major financial hubs in China, closely tied to Hong Kong and with favorable policies. Interestingly, Shenzhen was one of the first Chinese cities to open up to the foreign world in 1978, thanks to Deng Xiaoping. It grew with an astonishing rate of 40% per year from 1981 – 1993.The Chinese government has realized the fast-growing house prices and investors’ love in the real estate market. Therefore, it saw no other choice than to introduce new measures to cool down the market. The most notable change came in March, 2017. The difference has been night and day since, with Beijing being affected the most.The main goal behind these changes was to encourage buyers to live in their houses, not simply buying them as investments. The fact is, many Chinese investors and private households prefer to invest in real estate instead of stocks as they put little trust into the stock market. According to CNBC, Chinese households put 2/3 of their assets in real estate, while Japanese people only put around 1/3 of their assets in real estate.Why is this the case? The main reason is that investors in other countries tend to invest more in stocks. Simply speaking, the Chinese don’t trust their domestic stock market.It’s too volatile and individual holders account for 80% of the trade volume in the Shanghai stock market, for example.These individuals often collectively “panic-sell” based on rumors and chase short-term gains. You’ve probably read about the Chinese stock market crash that went on from 2015-2016.

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