Market Maturity in China: Exploratory analysis

With the adoption of an open door policy and economic reform, China began to integrate into the global economy. Marketisation and rapid economic growth in the 1980s at first created a market of user demand for land and buildings from overseas investments and local businesses, subsequently, the development market and investment market have emerged and been formed. After over three decades, the China’s real estate market has gone through the stages of experiment, evolution, transformation and maturing. Beijing and Shanghai, the two largest commercial property markets have attracted international investors’ interest. Thus, it is becoming increasingly important for investors to develop a better understanding of this largest emerging real estate market. This paper aims to explore perceptions of market maturity and issues of importance for investment in this property market. In this research, we apply the key determinants based on previous work undertaken by Keogh and D’Arcy (1994) in mature market to the analysis of Chinese real estate market, particularly focusing on Beijing and Shanghai. The questionnaire is designed to obtain fair and objective views from property consultancy firms active in Beijing and Shanghai market.