Savills Research release China insight report

Savills Research have released a report which reflects upon the emergence of China as a super power and the implications for Australia.

 

Insight: Australia, Asia and China – February 2013

 points out that:

• China is expected to become the largest economy in the world and is expected to be at least twice the size of the US economy by 2050

• Urbanisation has clearly been a substantial driver of economic activity over the past 25 years in China

• Between 1980 and 2010 the urban population has grown from some 200 million to over 600 million

• A great deal of the growth in China is being generated by fixed asset investment and industrialisation

• China's real estate investment market is still relatively young, having only started seeing institutional investors enter the market in the early 2000s

• As Australia sits on a large base of natural resources, the effects on Australia are profound.  Not only have the price of commodities risen, volumes have increased also.  The impact on the terms of trade has seen Australia's economic performance become the envy of the Western world

• The ageing of the Chinese population as characterised by the age dependency ratio is expected to create challenges for China in the future

• The story of China’s emergence as an economic superpower is not just a Chinese story but more an Asian story. China is having a substantial impact on the economies around the region as China is now the major trading partner of all the countries in the region.

• Chinese overseas direct investment is expected to overtake inbound foreign investment, with more investment dollars moving out of China than moving in.

 

For a full copy of the report, click the link below:

SavillsResearch_Insight+Australia+Asia+and+China_Feb2013

 

Savills’ Research & Consultancy team offers a range of updates, information and analysis covering office, retail, industrial and residential sectors with a focus on economic outlooks for short and long-term real estate investment.

Authors:

Tony Crabb, Savills Australia Head of Research

James Macdonald, Savills China Head of Research

Simon Smith, Savills Asia Pacific Head of Research