China Property 1Q10 Industry

Additional Information

The China property market has been recovering in the first four months of 2009 on the back of lower pricing and government incentives. As of 3Q09, transaction volume and property prices in most cities in the country managed to surpass peak levels in 2007. While the residential sector in the Mainland saw signs of bottoming out or slight recoveries, the Hong Kong market witnessed a pull back in the month of October, with fewer transactions recorded. The office sector too showed traits of rebounding with increased activities and an increase in supply in several cities. The Hong Kong office market showed growth for the first time in 15 months with the increasing demand for serviced offices. The retail market in China stabilized in 3Q09. Small upticks in rentals prices were seen as retail enquiries increased as retailers rush to replenish stock for the upcoming holiday seasons and Chinese celebrations. The industrial sector in Shanghai rebounded gradually in 3Q09 with the help of government stimulus measures, displaying a smaller y-o-y output decline compared to the previous quarter.