Mainland real estate market still poses high risks

Investing in mainland real estate still carries a high risk due to the market's immaturity and lack of transparency, according to property fund management firm LaSalle Investment.

This was despite the country's strong economic growth, which was fuelling price rises, LaSalle Investment national director David Edwards said.

'There is a lot of positive sentiment and a lot of money chasing the markets. Quite often we are seeing deals which do not look appropriately priced,' he said.

The company had no investments in China but was looking for suitable opportunities, Mr Edwards said. 'We think the volume and number of opportunities [in the China market] have increased over the past nine to 12 months, which is a good thing for us. We are interested and the timing has improved.'

The company expects to see mainland economic growth continue, driven by growing domestic consumption and a continuation of a strong export environment.

The rapid growth of consumerism has led to a boom in the middle-income retail segment, a sector the company believes will have strong prospects for many years to come.