A New Real Estate Bull Market

Robert Hsu, May 26, 2009

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It may be hard to believe but there's one country in the world on the verge of a new real estate bull market. Of course, I'm talking about China.

With the financial crisis unwinding dramatically last year, real estate markets around the globe corrected sharply, as home prices dropped from relatively high levels. Money had tightened up, and banks weren't providing loans hand over fist to prospective homebuyers.

This is all starting to change in China right now.

While I was visiting the country last month, I observed the changes occurring in China's real estate market right now. And I consider these findings the most valuable ones from that trip.

Specifically, I learned that China is following in the footsteps of the U.S. from early 2003. China is experiencing three things, in particular, that the U.S. did during that time frame:

Money is flooding into the real estate market as interest rates are low;
Chinese are purchasing properties hand over fist;
No one is watching – analysts are too focused on China's economic growth in the first quarter.

Considering that these three factors led to a four-year housing market boom in the United States back in 2003, I think everything is lining up for a positive rebound in China's real estate market today. And there are two great ways to take advantage of this turnaround.

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A New Real Estate Bull Market

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