China has experienced a slowdown in an economy that's rated at 6.5 percent. At the surface, it looks bad, but it's actually a good thing. As Financial Times showed, the country's economy is still growing and is more sustainable than any other economy. However, the real estate industry is reported to be the biggest winners out of this than any other market in China.
While there will be negative effects that the slowdown will have, it will be offset. In the real estate market, tax cuts increased spending on infrastructure, as well as foreign investor demand, will make things better. It's a definite trade-off, The Investor reported, for what will be a slower economy and, in connection, a slight decline in economic growth.
That being said, China's economy grew 6.4 percent during the last months of 2018. That's still a better rating than most countries, although it was the slowest when compared to the Chinese economy's growth. Daniel Yao, JLL China head or research, said that real estate in the country impacted heavily on the gross domestic product, accounting for the seemingly negative impact.
In reality, however, new projects are currently being planned for the infrastructure of the country. This is expected to give a substantial boost to the economy; however, the focus will be on projects such as telecoms infrastructure, instead of creating new metro lines and highways. The focus shifts on tech instead of concrete structures.
Foreign buyers are also expected to bring in substantial growth. Due to the reduced market prices, properties have become attractive to investors looking to buy at a bargain. German insurance firm Allianz, as well as Blackstone and Singapore-based real property developer CapitaLand have made sure to take not of this.
Technology, as earlier mentioned, have largely remained strong, especially in tier one cities where office space demand remained strong. Corporate expansion will benefit more from this, according to experts, and even when its economy is growing at a slower rate, it's still creating waves, according to the report.
Two changes implemented during China's adjustment to the conditions created by the economic slowdown enabled this: one is to end tax concessions, the other is to remove the feeling of risk from investors in the country's economy through actions by the government, such as certain controls.
Changes and improvements such as this has enable China to move forward and seek to improve its position on the global stage, in spite of 'problems'.
