Mainland developers still in the early stages of diversification, says Savills China chief

Albert Lau, a Hong Kong native who lives in Shanghai and has worked in real estate services in the mainland for more than 18 years, is responsible for managing 13 Chinese offices for the London-based global property consultancy Savills, as well as overseeing the development and implementation of strategies and policies within these cities.

The chief executive of Savills China said the current trend of mainland Chinese home builders investing in commercial properties for diversification and long-term stable returns is a natural move.

But compared to seasoned Hong Kong commercial property developers, they still have a long way to go before successfully realising the transition.

The market is worried China will tighten credit policies as the property market is too heated in some cities. What do you think?

I don’t think liquidity will be tightened in the second half. Quantitative easing is a global trend, the whole world including the US, Japan and Europe, have cut interest rates. It is unlikely China will go against the trend, especially when our export and manufacturing performance is still weak. So I expect the overall easing environment to continue.

The ample liquidity would make it easier for homebuyers to access low-interest mortgages and boost the real estate sector.