Investors remain hungry for China property
While China suffered the same covid-induced stresses as other markets in the very early days of the pandemic, the country wrestled with the crisis to great effect in the first quarter of 2020 thanks to a strict lockdown. The economy, as a result, rebounded far quicker than its competitors with a CBRE and Oxford Economics report forecasting GDP growth of 8.2 percent in 2021.
And it seems China’s property market is basking in the glow of the country’s enviable management of covid and subsequent economic revival. Although experts acknowledge it has been a difficult year for managers in terms of deploying capital, private capital remains confident of putting cash to work in this vast property market with allocations to China-focused funds growing from $2.05 billion in 2019 to $3.9 billion in 2020, according to PERE data.
As one commentator in the report puts it, “there’s confidence here.”