Chinese New Year next week (9 February) may be a time for wishes of good luck and prosperity over the coming year, but canny property investors can turn these wishes into reality by looking to the Far East, and in particular Shanghai.

The financial district of Shanghai. Picture courtesy of Shanghai Vision

The property investment market in Shanghai, on China’s East coast, is currently reporting massive activity and strong growth which looks set to continue into the near future as the city transforms itself into a major financial and commercial centre.

Property prices are still at around seven times less than in London and New York, but the sprawling metropolis of Shanghai is growing at a similar rate to that of these key cities at their peak, suggesting that there is the potential for prices to experience strong growth in the future.

Nick Clark, Managing Director of The Homebuyer Show (25 – 27 February, ExCeL London) comments, “The relaxing of economic regulations in China has opened many markets up to new investment. It is now relatively simple for Western investors to own a property, secure a mortgage, and receive rental yields and capital gains."

“All the signs are that Shanghai is following in the footsteps of its near neighbours Hong Kong and Singapore as a key financial centre, but with property prices still relatively low there is plenty more scope for plentiful returns.”

Property investment company ShanghaiVision.com are experts in the local buy-to-let market and will be exhibiting at the Homebuyer Show.

Managing Director David Cunningham explains: “The Chinese government are adamant that Shanghai will be one of the major players in the international business world. There is massive investment in the underground, airport and other transport infrastructure, as they reach their goal for the year 2010 – the city of the 21st century. In fact it has been said that there are more cranes in Shanghai than anywhere else in the world as Shanghai is officially the fastest growing metropolis on the planet!"

“Already home to the Shanghai Stock Exchange, the city now also hosts the World Trade Organisation and many other financial companies are relocating their Asian headquarters to Shanghai, adding to the rapid growth of the city. In addition, a relatively low home ownership rate and a large inflow of population is increasing the demand for rental properties.”

The Chinese Grand Prix in 2003 was just the first step for what China is planning on showing the world. They will be hosting the World Expo in 2010 and, probably most significantly, the 2008 Olympics. These events will really bring the area to the forefront of the world’s attention and the cities have been working incredibly hard to ensure that they put on a good show.

The Homebuyer Show at London’s ExCeL Centre is held on the weekend of 25-27 February 2005. The show is tailored to cater for people on every rung of the property ladder whether they are first-time buyers, homeowners looking renovate or improve their house or those seeking a dream home overseas. The show will include over 200 exhibitors ranging from financial companies, estate agents, property developers, and investment experts. An unrivalled programme of information-packed seminars presented by leading property experts will provide visitors with the opportunity to gain first-hand advice on a whole range of house buying topics. For more information and advance tickets, visit www.homebuyer.co.uk