Shanghai ranks as the second most attractive investment property market in Asia, while Guangzhou scores as the sixth and Beijing the eighth among Asia’s top property markets for investment, according to a report released by consulting firm PriceWaterhouseCoopers (PwC).
Tokyo takes the top spot as the best investment property market in the region.
The findings are the result of a survey jointed conducted by PwC and Washington D.C.-based nonprofit research organization, the Urban Land Institute.
Shanghai has always ranked as either the number one or number two most attractive Asian investment property market, except once, since the survey started in 2007.
As China’s business and financial center, demand for Shanghai real estate is much stronger than other cities. Shanghai also offers a level of comfort to investors, particularly those new to China.
"If you’re local enough and you have sufficient boots on the ground, you’re able to intelligently pick the winners from the losers," the report cites one anonymous investor as saying.
"We’re not there yet, and as a result we need to focus on the cities that are definitely going to be winners," the investor adds.
Investors also point out that Shanghai is structurally under supplied in terms of office space, unlike other major cities in China. It will help Shanghai’s investment property market over time.
In China, house sales transactions increased 34.5% year-on-year in the first nine months in 2013, while prices increased 10.7%, according to Chinese real estate services provider, SouFun.
The idea of a real estate bubble in China is misconceived. China’s ongoing demand and rising incomes will continue to drive Chinese property market in the future, says PwC in the report.