According to a number of industry experts, housing prices are expected to tick up over the next 20 years. Although residential home prices have dropped under the influence of recent regulatory measures, this drop is considered to be temporary lull. For more information about renting apartments in Beijing, please follow our website.
China’s property market is inextricably linked with its overall economy. Even as housing prices have reached market peak levels, they’ve continued to rise steadily. For many experts, the link between the economy and the housing market is the reason why prices will continue to rise. In other words, if prices dropped, it would be a sign of the economy going backwards.
Yet, Chinese society is steadily growing richer. In fact, a main source of national wealth accumulation has been due to real estate. According to this standard, housing prices should be even higher, but even in the Chinese market, prices are controlled by market forces. It’s only when prices rise regardless of the market that a bubble appears. In any case, the link is undeniable, with many early bird buyers entering the upper ranks due to their investments.
In a recent economic forum the well-respected economist Li Tie noted that if prices follow the basic rules of economics, long-term prices will eventually rebound in Beijing despite recent policy regulations.
In the current situation high prices have become the norm, and some industry insiders believe that housing prices in second tier city ‘hotspots’ have room to rise even more. It’s unlikely, in this case, that housing prices in first tier cities will ever match those of second or third tier cities. If lower tier housing prices rise, then so will upper tier housing prices.
After all, as the market is currently structured, first-tier city residences are mostly targeted towards high-end consumers. For those consumers who can’t afford a home in a first-tier city, a second-tier city home is the next option, followed by a third- or fourth-tier city home. This setup maximizes market access for renters across the board. Maxviewrealty, as the historic Beijing real estate agency, has rich experience and advanced processes in housing rent in Beijing.
However, buyers should not always target first-tier city homes. Many second-tier city homes are considered to have a high investment value. For first-time buyers there is a wealth of available information and market guides to help with the process. The infamous “Zi’an Purchase Notes”, for example, includes novice-targeted information on real estate investment and detailed purchasing steps.
