Prices On The Rise For Real Estate Surrounding Shanghai Free Trade Zone
News: Property and land prices surrounding the newly created Shanghai Free Trade Zone (FTZ) have seen sharp increases since the establishment of the zone, reports Want China Times. With the FTZ expected to expand geographically over time, many property developers are keen to secure the land and assets that are in close proximity, speculating that large rewards may be achieved if such real estate is later incorporated into the zone. It is reported that land prices in the Chuansh a district , for example, are currently selling at CNY19,000 (US$3,1 00) per square foot, compared with the previous high of CNY14,000 (US$2,300) per square foot.
BMI View: We have long held the view that the weakness seen in the Chinese economy in 2012 is highly unlikely to mark the low point in China's economic cycle and, as expected, the bounce in economic activity seen in early 2013 has begun to fade. We continue to see negative shocks on the horizon as the fragile banking system buckles under a slowdown in credit growth. Furthermore, the picture for 2014 is not particularly optimistic and expectations for a robust recovery in 2014 are likely to be met with disappointment as the rebalancing process proves more difficult to implement.