In this month's Asia Pacific Watch we focus on China and, specifically, its residential markets. Not a month goes by without China's economic and residential market trends featuring prominently in the headlines of the global media – such is their importance to the world's economy. We observe that when indicators are positive on China, media representations typically focus on the "over-heated" or "bubbly" characterization of the situation and when indicators are negative, claims are made of a potential "crash", "burst" or "hard landing".
Investors decisions about China should not be based on media headlines. Such news takes a rear-view mirror perspective and is not forward-looking, strategic nor actionable. Thus, waiting for headlines to turn positive can simply distract and delay investors from considering allocation to this market. Instead, the current environment – whereby the demand-side is being pent-up and the supplyside indicators are falling – can make for good market entry timing and may well deliver a good performance vintage. City, sub-market, segment and project selection will be crucial in this vast and increasingly differentiated market.
Source : CBRE Global Investors