Shanghai’s real estate sector in doldrums [China]
Investment in Shanghai’s real estate market is expected to grow less rapidly and become more vulnerable to policy uncertainties in 2008, according to several large real estate service providers.
Real estate investment saw a slowdown in the fourth quarter last year, with only one notable sales transaction completed in the city, after the government implemented the land appreciation tax and imposed additional restrictions on foreign investment in the sector, according to Jones Lang LaSalle.
“Increasing monetary control and tightening policies are bringing more uncertainties, particularly to the investment market,” said Lee Hingyin, director of Research & Consultancy at Colliers International (Shanghai).
“The investment market may feel the pinch, and it is likely that foreign investors will be more vulnerable to these policy changes this year,” said Lee, adding that he expects more severe measures, which will significantly cool down the investment market.