China properties are expected to remain attractive this year, according to Henderson Global Investors.
The country’s resilient property prices and transaction volumes last year had surprised many investors. In particular, the rebound in home buying activity in some cities with stringent measures was stronger than expected since March, noted the report.
The recovery of China’s property market has led to a stable outlook, spurring developers to increase their land purchases in recent months.
“This year, we expect that the pent up demand in tier one and tier two cities are likely to lead to steady price increase and recovery of property construction activity,” said Caroline Maurer and Andrew Mattock, Managers of Henderson Horizon China Fund, a unit of Henderson Global Investors.
“However as long as the average selling price (ASP) does not shoot up in the near term, it is unlikely that the government will impose any contractionary measures.”
Moving forward, China’s rapid urbanisation is expected to sustain housing demand, fuelling the growth of home prices as well.
Romesh Navaratnarajah, Senior Editor of PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
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