China LESS REPORTED (3): Villa Residential Sector
Stephen Chung
Managing Director
Zeppelin
Real Estate Analysis Limited
March 2007
(Based on
Data from Soufun - China Real Estate Index System CREIS)
While there are sufficient
market publications on the higher end China residential rental market
sector, there are few if any reports on the
a) the ordinary residential rental sector, b) 2nd hand
private residential sector, and c) the residential villa sector.
Thus we have decided to offer some basic data and indexes on these sectors,
and in this article, we shall deal with the latter (c) sector which in a way
may supplement the overall private residential market situation. Villas are
generally considered to be of luxury grade.
Villa residential properties
may come in the form of
row or town houses, semi-detached units, detached houses, or estate type
mansions. The indexes are compiled from thousands of published web
property listings from real estate brokerages.
Only 3 of the major markets
of Beijing, Shanghai, and Shenzhen are dealt with. Here are the basic
index charts:
Source:
Soufun
Source:
Soufun
At
first glance,
while
Beijing and Shanghai villa sectors strived flatly along, the greatest gain
was observed in the Shenzhen villa sector. Indeed, compared to the index on
February 2005, the December 2006 index for Shenzhen showed an overall gain
of close to 50% (49%). Nonetheless, an interesting point is that the indexes
do not rise all the time but instead harbor both ups and downs, obviously
with more ups than downs.
Notes:
The article and/or content contained herein are for general reference only
and are not meant to substitute for proper professional advice and/or due
diligence. The author(s) and Zeppelin, including its staff, associates,
consultants, executives and the like do not accept any responsibility or
liability for losses, damages, claims and the like arising out of the use or
reference to the content contained herein.
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