Bullish stock market could dent real estate
By Hu Yuanyuan (China Daily)Updated: 2006-12-07 09:12
Peter Lin, director of CB Richard Ellis (CBRE), a US-based property
consulting firm, also believed that the impact on China's property sector would
not be obvious, especially in the short term.
"China's stock market is at
a pretty high level now, with the possible profit margin shrinking and potential
risks increasing. Thus, investors may quickly evacuate the stock market once it
slides down. But property investment is usually long-term behaviour," Lin
explained.
He argued that China's property prices would continue to rise
over the next three to five years, fuelled by the galloping economy and strong
demand.
China's real estate prices maintained their robust growth in
October, but the number of transactions involving foreign institutional
investors declined due to restrictions on overseas investment.
Property
prices in China's 70 large- and medium-sized cities rose 5.4 per cent in
October, 0.1 percentage points higher than August's rise, according to the National Development and Reform Commission (NDRC).
The
prices of high-end and ordinary residential properties saw year-on-year rises of 7.7 per cent and 6.4 per cent, up 0.7
and 0.1 percentage points compared to September.
Beijing witnessed the
biggest price rise, with year-on-year growth of 10.7 per cent, while Shanghai
saw its prices drop 0.6 per cent compared to the same period last year.
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