China remains unaffected by credit crunch

China's breathtaking economic growth is unlikely to be de-railed by the global credit crunch making it one of the best places for property investment funds to consider, it is claimed.

Interest is growing in particular from big investment groups in Australia and New Zealand who naturally look to Asia as a profitable market.

Analysts believe that with about 300 million people shifting from China's rural hinterland to its rapidly expanding cities each year economic growth will continue.

'The best investment returns in the world are actually going to come out of Asia and emerging markets, and the US's day in the sun is certainly over,' said Craig Dunstan, chief investment officer of real estate specialist Macarthur Cook.

New Zealand based funds manager Kinloch has just launched its Emerging Markets Property Securities Fund that will invest in listed property securities across the developing world, but mostly in Asia.

Poland and South Africa are also being considered as potential growth areas across all sectors including commercial, retail and residential.

Figures from the International Monetary fund back up the general trend towards emerging markets offering best growth prospects. It is forecasting GDP growth across emerging markets of 6.7% this year and 6.6% next year against 1.3% per annum across developed economies. As Macarthur Cook points out there is a high correlation between GDP growth and real estate and property values.

Analysts are also keeping a close eye on India and Vietnam where mass urbanisation is driving demand for housing, factories, offices and shopping malls.

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