Property developer CapitaLand said the present property boom in China cannot be labelled as a bubble. It is of the view that current market conditions are driven mainly by physical demand.
While it notes there is some degree of speculative demand in the Tier 1 cities, CapitaLand said there is no subprime danger in China, unlike in the US.
It added that it is comforting to note that the Chinese government is taking steps to rein in the market.
CapitaLand is of the view that the rapid urbanization and huge demand for housing will continue to underpin the Chinese market for a long time to come.
For the Singapore residential market, the firm said there is a balanced demand and supply situation. It noted that the recent cooling measures introduced by the government are to ensure stable and sustainable property market, and discourage speculation.
CapitaLand said it will continue to acquire new sites here. It made the comments in a presentation at the Daiwa investment conference in Tokyo on Thursday.
Source: Channel News Asia, 11 Mar 2010