Shanghai, a major financial hub in China, and Hong Kong, a former British colony, have long attracted many overseas investors looking for a safe haven.
In the last few years, however, interest in China’s housing market has waned, with prices and vacancy rates at record lows, making it hard to sell.
One possible avenue for investors to buy is the real estate market, which has been on a tear.
It has surpassed $2 trillion in value in the past year, according to real estate site Zillow, and its pace of growth has surpassed most developed economies.
“The number of people in Shanghai has grown by more than 20 percent since 2014, while the vacancy rate has fallen by a full percentage point over the same period,” Zillows Chief Economist Michael Lee wrote in a note to clients in November.
“The trend is not likely to reverse anytime soon.
The recent housing price increases were more of a response to China’s economy, which is still slowing down, and a temporary rebound in the realtors’ markets is not expected to last long.”
China’s real estate boom is one of its few bright spots in a bleak economy.
In 2016, China’s central bank said the housing market would increase by 3.7 percent from 2016 levels in 2020.
The country has now grown by 5.3 percent in the first three quarters of 2017, according with data from the country’s Central Bank.
But real estate prices in the country have slowed to a five-year low, with a median price of 3,600 yuan ($3850) per square meter in Shenzhen, China, compared with a national median of 7,100 yuan per square yard in Hong Kong.