| Regardless of what self-appointed real estate experts say, one simple fundamental growth driver for the Shanghai real estate market is growing demand in the long-term. Shanghai continues to be the economic center of the country. At the same time, many Chinese go to Shanghai to try their luck there. This urbanization trend will keep on, so we need more low-end housing simply to offer enough shelter for all workers. With rising incomes, young people are striving to upgrade their current accomodation - possibly an apartment they've shared for years with their family - to a mid-end apartment. In the meantime, one perceivable trend is the necessity for a man to have an apartment or at least the plan and financial means to purchase one before the his fiancé's parents accept his marriage proposal => Demand for mid-end apartments grows. Shanghai is set to evolve into one of the major metropolises in the world. This will add to its attraction on a broader scale, and draw the interest of affluent people across the whole world. => Higher demand for high-end apartments. |
Is the Real Estate Cooling Down? - Part III