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Property analysts and industry players are optimistic about the China property market in the year ahead as the government takes new moves to stabilise the property market and curb speculative buying.
Our correspondent reports from a Singapore-China real estate forum organised by Channel NewsAsia in Beijing.
New developments are sprouting up around the Chinese capital ahead of the 2008 Beijing Olympics.
And for a while now, there has been concern the building frenzy could lead to a bubble effect in this sector.
However experts says this is unlikely, adding that China's property market is demand-driven.
Liew Mun Leong, President and CEO, CapitaLand Group, says: "So in terms of physical demand, because of urbanisation, in terms of requiring new products like shopping malls, the demand is always going to be there for a few decades. In so far as the economic progress follows it, the business for real estate will be good."
Singapore real estate player CapitaLand has been in the China market for 12 years.
The company says, based on figures for the first half of 2006, revenue from China made up 16 percent, or nearly one-fifth of the group's total revenue.
Grace Fu, Singapore's Minister of State for National Development, says: "The private sector has done very well in several projects. We are very encouraged by that. I think that is important because we have to build our external wing and our private sector has done very well in that aspect."
Ms Fu was gracing a Singapore-China real estate forum organised by Channel NewsAsia.
She shared Singapore's experience in building quality and affordable public housing and the exciting changes ahead in Singapore's urban landscape.
Turning to the China property market, the forum discussion touched on the Land Appreciation Tax implementation, which is a move to prevent developers from profiteering from hoarded land.
Experts say this is unlikely to affect property prices.
Hermann Lee, Vice President, China Real Estate Chamber of Commerce, says: "Those who had acquired and kept land in the previous years especially when the prices were low, they will be paying more taxes because of the new law. But for those who are getting land now, the impact is limited and they may even end up paying less taxes."
Industry players and analysts say that as long as government policies continue to ensure a stable property market and that the economy continues to power ahead at the current pace of growth, the outlook for this sector is positive.
And experts say China could soon see the setting up of a real estate investment trust market, or REITS, as a means of alternative financing.
Woon Tai Ho, Managing Director, MediaCorp News, says: "We hope this forum will provide a platform for dialogue between Singapore and China. And that this event will be an annual affair, achieving new heights year after year."
The is an inaugural forum in China for Channel NewsAsia. - CNA/ch
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