Booming Market in China and Shimao

Mainland China‘s real estate has been rising at 11.7% for its major 70 cities since last year. China’s government unleashed a $1.4 trillion lending boom last year to stimulate the economy and is now trying to slow the surge in property prices. Hainan is top on the list with price rising over 50% in one year. The growth rate is sliding, but prices may continue to rise until the demand supply imbalance improves.

Developers had deferred construction of new projects till the fourth quarter of last year due to the global financial crisis. But with the quick financial recovery and the realty market sizzling, it led to a demand-supply imbalance and resulted in sharp price hikes. In order to curb excessive property price growth in some cities, government has launched new rules that investors have to put down extra 10-20% as down payment when they are purchasing their second or third properties. It did cause 10% cancellation in existing contracts, prices are not rising sharply and not falling either. It is expected to correct 10-15% in short term, making this a great buying opportunity.

I have the honor to be invited by Shimao (top #3 as Chinese Real Estate Luxury home developer) to be one of their agents to represent some of the best investments in China.



Since 2003, they had the vision to establish their international branding and they started team up with agents all over the world to sell the highest demanded unit in their selected projects. They are famous for building high end properties along the ocean, lake or water reservoir. They reserved the best viewed units to our U.S. market regardless local Mainlander line up to purchase these new constructions in China. The U.S. buyers really love the fact that there is no property tax in China and also the Homeowner’s monthly maintenance dues is very inexpensive even for brand new full service buildings.

Why invest in China?

1. 13 billions of population, with GPA rising in 8% per year. - If China creates one million per 0.001%, how much more buying power per year? Amazingly high. No more land to be purchased to build new development. There are lots of land in china, but most has to be kept as farmland to produce rice for local Chinese. In auction for land, government is listing land in the price based on rising home price 10-15% per year, money has to all paid off within one year and building has to start within 2 years.

2. Rising RMB - most probably will happen this June

3. Government is trying to control rising real estate prices. - Everytime they did, for the last three times, prices gone up more than before within a year.