Real estate market in China had a strong growth in 2007, and the Chinese government implemented the land appreciation tax and imposed additional restrictions on foreign investment in the sector. Just when it looked like the boom would go on forever, the average housing price in 70 cities suffered consecutive monthly decline during the second half of 2008, and for some cities, the year of 2008 was the worst in the past ten years.

Shanghai real estate market has experienced a robust growth since 1990s except a few downturns including the 1999 and 2005 dips. Shanghai is generally considered to be a better performer in keeping its pricing during downtime, but Shanghai property sales had also experienced a significant decline during the second half of 2008. Shanghai, however, begins to show signs of improvement and seems to lead this sector to stabilization. Although with declining prices from the peak, it has shown an impressive rebound in new and exiting home sales. The government’s 4 trillion yuan, or $585 billion, stimulus plan will help mobilize private-sector investment in sectors such as real estate, although it relies mostly on government-led infrastructure investment. Given the high housing inventory level in most cities, a rebound in trading volume by no means means an instant price catch up. Time will be needed for adjustment for the real estate industry. Investors and home buyers are never too far away. After a period of waiting and observing, some start to see opportunities and dive in this market. Real estate is key to revival of the world’s third largest economy. Shanghai, China’s largest city and the eighth largest city in the world with several thousands of skyscrapers and its distinguished architecture, is in particular, the source of consumer confidence. A decline in Shanghai represents major instability in the national and global markets, and tends to create negative ripple effects.

Regardless of the current economic slowdown, the Shanghai banking regulator reinforced the second home requirement rule, reiterating that buyers must put at least a 40% down payment for purchasing a second home. This shows government’s disciplined approach in stimulating the real estate market. In general, the government makes lands available for sale primarily through auctions. The companies that purchase the lands will be responsible for building properties and selling the properties to the public. The residents will hold seventy year long property ownership.

Under the current policies, foreigners are entitled to one property if they have worked and lived in Shanghai for at least a year. Besides the residency requirement, they must purchase property only for their own use and can not lease it to others. Shanghai property transaction centers can make up own rules on trading on the basis of these policies, according to Shanghai Municipal Housing, Land and Resource Administration Bureau, and rules and implementation time could vary by district. Restrictions that were imposed on foreign investors from investing in the first tier cities like Shanghai have not been released, but real estate opportunities in the second and third tier cities or Shanghai nearby cities such as Hangzhou, Suzhou, Wuxi, are either open, or not as restricted. One thing to note is that overseas institutions and individuals that have set up a company in China may purchase property for purposes other than their own use. Regardless of economic and market conditions, Shanghai, with its unique historical background, rich cultures and vibrant growth, continues to attract people from all over the country and all over the world.

Kingdom of Thailand is a constitutional monarchy and is unique among Southeast Asian nations whose traditions are rooted in centuries of freedom. Beautiful mountains, dense forests and mile after mile of white sandy beaches and turquoise seas lapping at the shore, a tropical climate draw visitors back each year. There are many exclusive trading blocs that are in place in the region to facilitate the smooth flow of goods and services across the borders of various countries located in South East Asia. The city of Bangkok is one of the biggest cities in this part of the world and is a center of commercial activity that spurs the growth of the Thai economy. This makes investing in Bangkok real estate a viable business proposition.

One of the main advantages that are offered by Bangkok real estate is the price arbitrage that can be availed of by investors in the property market in this South East Asian country. The prices of a Bangkok house for sale or a Bangkok condo is only a fraction of what it would cost to buy a similar property in developed economies. In some situations, you can get yourself a property in a new development that is being promoted by Thai businesses. The advantage in such a real estate transaction is that you may be able to get attractive discounts on the sale prices of properties in the Bangkok real estate market.

Foreign citizens who are interested in real estate investment Thailand have to be aware of the local property laws to profitably invest in the property market in this country. The laws governing the sale or transfer of property in Thailand are set up with the express purpose of protecting the interests of their citizens and also to prevent the inflationary pressures of an unregulated real estate market.

What this means for the international investors is that they have to get a thorough understanding of the Thai property laws with a special emphasis on the interests of foreigners in the property investment transactions. It may be good move to engage the services of Bangkok estate agents to advise you on the legal aspects of the property transactions in Thailand.

One of the safer ways to invest in Bangkok real estate is to set up a company in Thailand, as you would then be able to get over the restrictions imposed on foreigners to invest in the Thai real estate market. The Bangkok estate agents are perhaps the best point of contact that you – as a foreign individual investor – can entrust the task of engaging a lawyer to complete the necessary formalities to start a new company in Thailand as a precursor to your property investments in this country.