Source: Colliers International Shanghai (CIS) Research: OUTLOOK FOR Q4 2010 Rental High-end Apartment Serviced Apartment Villa Overall Market Capital ValueGross Yield HIGHLIGHTS After a relatively quiet period from April to July, many new residential projects entered the market at the end of summer. Since August, transaction volume in Shanghais residential market has surged, with aver- age prices also rebounding. Amidst the continued strong growth of Shanghais economy and the ongoing EXPO, the demand for high-end residential leasing continued to rise. As a result, vacancy rates continued to edge downwards while rental rates remained stable. The outlook for the residential market depends largely on the timing and strength of future government poli- cies. Shanghais complementary tightening measures, which have yet to be issued, will probably be an- nounced in accordance with the market performance during the fall sales period. For the high-end residen- tial leasing market, following the completion of Expo, it is forecast that vacancy rates will increase while rentals will decrease. OVERALL RESIDENTIAL MARKET In Q3 2010 there were no major changes to the policy fundamentals of the Shanghai residential market. The China Insurance Regulatory Com- mission issued Insurance Capital Management Measures on August 5th, which will allow insurance capital to be invested in the property sector. Although insurance companies will not be allowed to directly invest in real estate development, there are numerous other ways that they could de- ploy their signif cant capital reserves. With domestic insurers having 4.57 trillion yuan worth of capital there should be signif cant liquidity available for property investment, of which a maximum of 10% can be invested in property. The entrance of domestic insurers could be a lifeline for some developers who have been adversely impacted by the previous tightening measures issued by the government. Meanwhile, the China Banking Regulatory Commission suggested com- mercial banks suspend third-housing loans in selective areas, due to un- expected price growth and lagging new supply introductions. As a result, it seems unlikely that the government will loosen credit policies in the short term and could implement further policies to prevent another round of double-digit housing price growth. 。。。。。。以上简介无排版格式，详细内容请下载查看