China and the Real Estate Market - Essay Example

Research findings indicate that China’s property market is robust enough to remain unaffected by the global economic crisis. As an emerging and growing economy with a strategic global position, China can bear the tremors of the worldwide recession and land on its feet. Besides, the government is taking a number of initiatives to attract FDI in the property market. Investing in China is profitable due to China’s entry into the open market. Financial organizations have diversified their product portfolios to accommodate the changing needs of the growing economy.

China due to its strategic position has become the central point for economic growth and is becoming a benchmark for other world economies.China’s property market is facing complex issues ranging from government intervention to a property bubble. However, the value of the market is increasing and it is becoming an attractive investment option. The dissertation is going to establish that; China has a good property investment for foreigners and has escaped unharmed from the recession to a great extent. . The major drawbacks of the market are the government restrictions and the emerging property bubble.

The dissertation through secondary analysis establishes that the best cities to invest in are not Beijing and Shanghai but inland cities such as Wuhan. The property market boom in China has been due to the fast pace of urbanization, double-digit economic growth, and speculative reasons. Currently, the pace of growth in the property sector has slowed down due to the effects of the recession. The recession resulted in single-digit economic growth in China after maintaining double-digit growth for a long time.

The property sector showed signs of faltering when property developers started offering discounts in mid-2008. The number of property deals decreased in big cities and property prices fell from 10 to 30 percent. This resulted in the need to identify how China’s property market is affected by the recession and whether in fact, the slump was the result of the worldwide recession.