Foreign investment in the Chinese real estate sector soared to
US$1.44 billion in the first half of 2006, according to a report by
consulting firm CB Richard Ellis.
The investment was 15 percent higher than for the whole of 2005,
said the report carried by Wednesday's Shanghai Securities
Daily.
This figure mainly refers to money used to purchase buildings
and does not include real estate development purchases.
Statistics show that capital from North America and North Asia
represents the lion's share of the investments. Last year alone,
capital from North America accounted for 43 percent of investments
in China's real estate properties, rising to 51 percent this
year.
North Asian investment increased from last year's one percent to
24 percent in the first half of the year while capital from
Southeast Asia dropped from last year's 36 percent to 19 percent,
indicated the report.
Beijing and Shanghai remain the priority choices of foreign real
estate investors with the capital attracting 49 percent of the
investment, followed by Shanghai with 45 percent of the money.
The percentage of foreign investment in advanced residential
buildings rose from seven percent to 36 percent. Foreign capital
still holds the largest share of investments in advanced office
buildings -- 42 percent -- and 12 percent of retail and hotel
investments.
Tighter requirements on investment programs and more complicated
procedures will halt some purchases, said analysts with CB Richard
Ellis.
(Xinhua News Agency October 26, 2006)