Q: What building types are hot in China right now?

A: The simple answer is that according to all accounts, all market sectors and building types are "hot" right now throughout China. It will be interesting to see how foreign investment treats the recent devaluation of the renminbi. If they think that the renminbi will stay put, pegged against a basket of foreign currencies, then foreign investors would be wise to cash out and pull their investments in China for good gains. If they think that this devaluation is the first step to further steps in lowering the renminbi to even the currency trade among WTO countries, then expect an influx of foreign investment into an already overheated market. This influx of capital will tend to hedge that. By lowering the renminbi, investors will reap gains above the initial returns of the investment due to the currency exchange. In short, it is likely that all market sectors and building types will continue to be hot in China for the foreseeable future.

One sector that seems to be hotter than any other in China is luxury housing. There are many brand new, high rise luxury buildings throughout cities like Beijing and Shanghai. The problem seems to be that they are sold out, but empty. This "bubble" has many within China worried that the market may not realize the gains that the speculative investors have gambled on by purchasing luxury housing units in the hopes of turning a profit within a period of time. Just when that period of time ends will be when there is a bursting of the housing bubble in China.

Commercial property, including retail, office space and hospitality, are in demand throughout the country and there is an effort being rolled out to improve public service buildings like schools, hospitals and social service buildings throughout China, but starting in the Western provinces.

Thanks to Paul Doherty, AIA. He is the managing director of General Land Corp. a full-service, global real estate development firm with a focus on the Asia Pacific market. Paul is a thought leader, strategist and integrator of technology and business. He is an author, educator, analyst and consultant to Fortune 500 organizations, global government agencies and prominent institutions and is on the board of directors of the International Facility Management Association (IFMA). He can be contacted at pdoherty@general-land.com.

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