文档介绍：The Chinese Real Estate Market and the effects of WTO
China's impending entry in the World anization (WTO) will be a blessing to the real estate industry in China which has had little to celebrate since the bustling days of the early-mid 1990's.
WTO entry sends a positive message to panies about China'mitment to economic and market reforms. Demand from panies - the primary occupants of top-mercial, industrial and residential projects is likely to increase as panies enter the market and others expand as restrictions are gradually lifted.
It is, however, premature to say exactly how much the real estate market will benefit. To predict that WTO entry will mean rising rents and demand for more construction in the short term is, perhaps, misguided.
The details of the agreement are not yet known, and it is likely that the impact will be gradual and unevenly spread amongst businesses and in different areas of China. Financial services, munications, distribution and logistics, information technology, agriculture, and professional services industries, as well as Chinese consumers, are likely to be significant winners.
Metropolitan areas may see benefits due to easing of restrictions on financial panies. Banks and panies are a major industry sector in these areas, and the lifting of restrictions on their activities could unleash significant latent demand for real estate as the reforms take hold. The lifting of trade restrictions, the lowering of tariffs and the easing of restrictions on distribution over the next five years will be a boon for warehousing, logistics and distribution real estate in China's busiest port city, as well as in the rest of China.
While WTO entry may encourage a recovery in real estate markets sooner than otherwise expected, almost every major market in the country remains vastly overbuilt. In the office sector, the vacancy rate for Grade A buildings is presently 30% in Beijing and 38% in Shanghai. Based on recent trends in demand, this vaca