Home>News Center>Bizchina
       
 

New real estate investment method?
By Zhao Huanxin (China Daily)
Updated: 2005-09-23 08:46

The real estate sector in China is ushering in a new phase of expansion, which welcomes the introduction of a new financial product - real estate investment trusts (REITs).

That is according to Meng Xiaosu, president of leading property developer, the China National Real Estate Development Group.

Yesterday he said he believed the sector can sustain continual development for at least 10 years before the demand for housing recedes.

This era of buoyant property development offers new opportunities for investors, including in the form of REITs, he said.

REITs are dividend-paying funds which invest in real estate. Most REITs own land or buildings and make their money by renting space to businesses or consumers. Some REITs earn interest on real estate securities such as mortgage bonds. Others earn money by paying for various real estate ventures.

Hugely popular in the United States and Australia, REITs are gaining ground in more and more places as they enable individual investors to participate in large-scale, income-producing real estate investments.

"We welcome the introduction of foreign REITs into China," Meng said. "Such funds have a good chance of profiting from the huge Chinese market."

Before foreign REITs enter China, however, the country may itself consider issuing REITs; compared with stocks and bonds, REITs often come with higher and more stable, lower-risk dividend yields, Meng suggested.

Speaking at a forum coinciding with the International Real Estate Exposition in Beijing, he said the per capita residential housing area for urbanites stood at 24.8 square metres last year, quite a low level compared with some countries.

The demand for housing in cities is projected to reduce only after the per capita housing area reaches 35 square metres, he said.

"Based on this projection, I believe China's real estate sector will embrace a market which promises to expand for more than 10 years in a row," he said.

In addition to financing the growth of the country's property sector, the introduction of REITs would also inject new vitality into the country's capital market, reviving its chronically dormant stocks and bond markets, he said.

The central government's pledge earlier this year to 'curb exorbitant hikes in real estate prices' did not simply translate into either inhibiting demand or lowering prices, Meng said.

Rather, one solution is to increase supply, he said, adding that there is a real need for more housing. This is because of city dwellers' desire to improve their living conditions, the rapid urbanization rate - at least 15 million farmers migrate to cities for work each year - and the launch of resettlement and renovation projects, Meng said.

In the past 17 years, the price of homes in China has, on average, gone up 12 per cent each year. Last year, spending on housing topped 1,000 billion yuan (US$120 billion), a massive boost for the economy.


(China Daily 09/23/2005 page10)



 
  Story Tools  
   
Advertisement
         
主站蜘蛛池模板: 久久国产色av| 亚洲综合激情九月婷婷| 黄+色+性+人免费| 国产麻豆一精品一av一免费| 一级毛片一级毛片一级毛片aaav| 日本漫画免费大全飞翼全彩| 亚洲av第一网站久章草| 欧美最猛黑人xxxx| 人人添人人妻人人爽夜欢视av| 精品无码久久久久久国产| 国产亚洲欧美精品久久久| 国产免费小视频| 国产精品国产三级专区第1集| 97视频精品全国在线观看| 好吊妞精品视频| 中国china体内裑精亚洲日本| 日本成a人片在线观看网址| 乱中年女人伦av一区二区| 欧美叉叉叉BBB网站| 亚洲欧美日韩中文无线码| 消息称老熟妇乱视频一区二区| 免费人妻无码不卡中文字幕系| 精品国产国产综合精品| 国产aⅴ激情无码久久| 迷走都市1-3ps免费图片| 国产在线步兵一区二区三区| 成人黄色在线网站| 国产特级毛片aaaaaaa高清| 中国高清xvideossex| 国产精品视频区| 91caoprom| 国产视频精品免费| 99久久99久久精品| 粉嫩大学生无套内射无码卡视频| 在线视频国产网址你懂的在线视频| 一区二区日韩精品中文字幕| 性高湖久久久久久久久aaaaa | 国产精品自在欧美一区| 99re最新地址精品视频| 在线观看亚洲人成网站| 99热成人精品国产免国语的|