No doubt, the real estate market in China is growing, as Guy Hollis of Jones Lang LaSalle revealed in Investment in China: the Issues and Opportunities. In fact, he reported real estate investment generally grew from $38 billion in 1995 to $150 billion in 2004.
But, as Henry Cheng of Chongbang Development stated, pitfalls arise as you zero in on specific regions, such as Shanghai, which he characterized as a "young and immature market, and fatal mistakes" are easy to come by. Outside investors who fail to focus on a specific region and a specific property type and who believe they can escape with less than a five-year commitment are headed for a fall, he promised.
Richard Price of ING Clarion, agreed. "The challenge is perseverance," he said, frankly admitting that "we haven't been able to get the returns that others have in stabilized high-quality office or retail."
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John Salustri
John Salustri has covered the commercial real estate industry for nearly 25 years. He was the founding editor of GlobeSt.com, and is a four-time recipient of the Excellence in Journalism award from the National Association of Real Estate Editors.
