Government interference, dropping prices, dropping occupation rates: China´s real estate has always been good for some panic in the media headlines. But there is no reason for panic, says real estate expert Sam Crispin with 20 years of China experience under his belt in GPB News, although some diversification is in order.
Sam Crispin, who has spent two decades following China’s real estate sector, thinks prices will gradually drop, and people, eventually, will buy. He cites the history behind Shanghai’s Pudong New Area, which had huge vacancy rates in the 1990s.
“The whole of Pudong was a bit of a basket case,” Crispin says, sitting in an office in the area’s Lujiazui financial district, overlooking the cruise ship terminal along Shanghai’s muddy Huangpu River. “Fifteen years ago, not many people wanted to make the move, but now we see some of the most desirable, most expensive real estate here in Pudong. It’s been a massive success for Shanghai.”
Of course, Shanghai is a prestigious, coastal city and a magnet for the wealthy and ambitious, dramatically different from Wuxi. As for Crispin, earlier this year, he moved home to England for family reasons.
He says no one should read too much into this, but he has sold all but one of his properties in China. He says he’s looking for better rent revenue.
“I can see the capital growth is slowing and it’s time to go and invest elsewhere where there might be better income,” Crispin says.
Seems like a good time to diversify.
Sam Crispin recently moved from Shanghai to the UK, to focus on outbound Chinese investments, in his case mostly in real estate. Are you interested in more experts at the China Speakers Bureau on China´s outbound investments? Do have a look at our updated list.