PROPERTY investment in China can prove to be a hazardous exercise.
Tax considerations are important and there are various other potential pitfalls to consider. Mr Albert Ng, a partner with Arthur Andersen warned the uninitiated to be careful.
He said there was a general lack of information about things such as tax, costs, government policy and regulations varied from place to place.
In response to fears that pre-sold property in the Pearl River Delta would not be built, the Chinese Government had tightened up conditions.
''We hope the worst is now over,'' Mr Ng said.
Most Chinese cities will demand that a developer cannot pre-sell unless it has already undertaken 25 per cent of the development costs - so the investors' risk is reduced.
Mr Ng said that tax was an area that needed a lot of caution.