The cooling measures implemented in China may actually be making it easier for foreign property developers to enter the Chinese market, according to Channel News Asia.
The property measures may be putting off some Chinese developers from starting projects, which is good for foreign property developers, including those from Singapore.
“For developers, they have to know the risks and hedge the risk. And that way, they can still benefit. So, if you have a niche market in mind, you know your buyers, you utilise your Singapore brand name, and you may just benefit from that,” said Colin Tan, head of research and consultancy at Chesterton Suntec International.
For example, Singapore-based property group City Developments (CDL) and its wholly-owned subsidiary CDL China, are eyeing seven projects in China. CDL China recently acquired its first development site in Chongqing for 232 million yuan.
Sherman Kwek, chief executive of CDL China, said the company is looking at residential, mixed-use and commercial projects.
“We are looking to be a long-term property developer in China. So now is as good as any time although many people are saying it’s very easy for you to get into China because of the cooling measures. You see that (the cooling measures) are always for a temporary period, and before long, the market rebounds again,” said Mr. Kwek.