Originally Posted by biggestbopper
Not to mention the fact that the Chinese government has announced various policies meant to rein in property speculation, suggesting that a price collapse may well be coming shortly.
At least, in theory, the policies you speak of are intended to prevent the collapse to which you allude.
As for the topic in question, at the institutional level, foreigners are increasingly active in the market. What's more, while China's markets may well have a long way to go before they reach they reach the maturity of --say-- Japan, IMO your money is much safer in China than it is in certain SE Asian markets.
Consider several points: 1) in the long run --crashes not withstanding-- the market is sure to appreciate because China is in the process of becoming a powerful economy; 2) those on the inside have an interest in maintaining capital flows and investment in order to sustain growth. Regarding #2, as long as you pick good local partners, I believe that long-term risk is minimal.
Given the RMB's anticipated appreciation, keeping some profits in-country in the form of real estate is a reasonably prudent strategy IMO.
Furthermore, if you don't want to assume a direct position, there are ample opportunities to broker deals for others that are intent on getting a piece of the pie.