Market and Population Growth

According to Huang Yu, executive vice president of China Index Research Institute, the annual growth rate of China’s real estate industry will be no less than 10 percent over the next 15 years. 

She believes China's real estate industry will pass through three stages of development before 2020: the first phase (1993-2000) saw the industry growing at an annual rate of 13 percent; the second phase (2000-2010) is experiencing an annual growth rate of 14 percent; and the third phase (2010-2020) should see an annual growth rate of about 10 percent. (Source: Property Talk Asia). 

Beijing property prices are already increasing.  Since 1998 Beijing property prices have increased at an average rate of 22 per cent per annum.  In 2004 prices increased by an impressive 32.5 per cent.

The 2008 Olympics are expected to further increase Beijing property prices.  Property prices in Olympic the host cities of Athens, Sydney, Atlanta and Barcelona outperformed their national averages by 19 percent in the five years leading up to the Olympic Games. The ongoing growth of the Sydney property market is testament to the long-lasting impact the Olympics can have on a host city in terms of investment, tourism, economic growth and status.  While the Olympic Games will last just two weeks the infrastructure and international exposure will have long-term benefits for Beijing. 

At the current pace, by 2010, China will have nearly 200 cities with populations of one million or more. Combined urban population in 2010 is expected to be over 600,000 million, about 45 percent of China's total.