5th Annual Real Estate Investment China Summit 2010

100% case studies, 35 speakers, 2 day focused conference

Investing into China real estate today is a tricky task. The upside for investments is definitely very attractive but tightening of government regulations as well uncertainty in the real estate market has led to investors becoming more cautious, pointing to the increased need for local insights and expert advice.

With only 10 weeks to the event, key debates often focus on investing into 2nd & 3rd tier markets, structuring RMB-denominated funds and the implications of new Chinese property regulations.

The above topics are just a snippet of what will be covered at the event. View the full agenda or drop us an email at enquiry@iqpc.com.sg for the full details on how to keep your Chinese real estate investments profitable.

A word from our speaker

Allen Lau, Managing Director of Colony Capital, speaks exclusively to Finance IQ on the investment opportunities of China’s real estate market.

Finance IQ: What is the current status of China’s real estate market and what can we expect in the following year?

Allen Lau:
Fundamentally long-term demand for housing is still strong in China due to its urbanization and increasing disposable income and upgrade needs associated with it. We are positive on the long-term health of the sector.

However, recent tightening measures do have a short-to-medium term cool-down effect on pricing, which is already down 15~20% in some cities. Since most of the measures aimed at restricting speculative investing, we expect the price to stabilize in the next six to twelve month and eventually will be on a upward trend once current tightening cycle is over.

Finance IQ: When it comes to the effects of government’s policy on the real estate investment industry, what investors should take note of moving forward?

Allen Lau:
At asset level, there will be less opportunity for short-term speculators like we have seen in the past due to maturity of the market and some potential change in regulatory environment. Investors should be focusing on long-term holding of yield generating / high quality assets. Equities and bonds of China’s property companies are still very much likely to be affected by global macro-conditions and China’s policy cycle.

Finance IQ: What kind of China real estate investments attracts institutional Limited Partners most globally?

Allen Lau:
Asset yield has always been a focus for global LPs of real estate funds. But in the past, the prices they are paying in China were more driven by the expectation in appreciation and it was often difficult to explain a lower yield when purchasing assets in a developing country. As prices normalize and rental increases, we expect the yield to come back to a level (comparable to other markets), more acceptable by overseas investors.

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