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1、TheChineseRealEstateMarketandtheeffectsofWTOChina’simpendingentryintheWorldTradeOrganization(WTO)willbeablessingtotherealestateindustryinChinawhichhashadlittletocelebratesincethebustlingdaysoftheearly-mid1990's.WTOentrysendsapositivemessagetoforeigncompaniesaboutChina’scomm
2、itmenttoeconomicandmarketreforms.Demandfromforeigncompanies-theprimaryoccupantsoftop-qualitycommercial,industrialandresidentialprojectsislikelytoincreaseasnewcompaniesenterthemarketandothersexpandasrestrictionsaregraduallylifted.Itis,however,prematuretosayexactlyhowmuchther
3、ealestatemarketwillbenefit.TopredictthatWTOentrywillmeanrisingrentsanddemandformoreconstructionintheshorttermis,perhaps,misguided.Thedetailsoftheagreementarenotyetknown,anditislikelythattheimpactwillbegradualandunevenlyspreadamongstbusinessesandindifferentareasofChina.Finan
4、cialservices,telecommunications,distributionandlogistics,informationtechnology,agriculture,andprofessionalservicesindustries,aswellasChineseconsumers,arelikelytobesignificantwinners.Metropolitanareasmayseebenefitsduetoeasingofrestrictionsonfinancialservicescompanies-Banksan
5、dinsurancecompaniesareamajorindustrysectorintheseareas,andtheliftingofrestrictionsontheiractivitiescouldunleashsignificantlatentdemandforrealestateasthereformstakehold.Theliftingoftraderestrictions,theloweringoftariffsandtheeasingofrestrictionsondistributionoverthenextfivey
6、earswillbeaboonforwarehousing,logisticsanddistributionrealestateinChinafsbusiestportcity,aswellasintherestofChina.WhileWTOentrymayencouragearecoveryinrealestatemarketssoonerthanotherwiseexpected,almosteverymajormarketinthecountryremainsvastlyoverbuilt.Intheofficesector,thev
7、acancyrateforGradeAbuildingsispresently30%inBeijingand38%inShanghai.Basedonrecenttrendsindemand,thisvacantofficespacewilltaketwotothreeyearstobeabsorbed,andthereismoreconstructionunderway.Chinawillcontinuetoreapeconomicrewardsfromthecomprehensivepackageofhousingreformsthatt
8、hecentralgovernmenthasbeencontinuallyintroducing.Themostrecentdevelopmentinthenewp