Top Biz News

Realty lures foreign funds

By Liu Jie (China Daily)
Updated: 2007-03-02 10:00

The number of property purchases inclusive of both foreign and domestic investment jumped 44 percent from 34 in 2005 to 49 in 2006, effectively sending their total value from 20.512 billion yuan to 33.021 billion yuan, representing a dramatic increase of 61 percent.

"As transactions and investment amounts surge in tandem, it's clear investors are keen to tap this rapidly expanding sector especially in search of ready-built properties that will yield attractive returns on rising prices and therenminbi's potential to appreciate," said To.

ShanghaiandBeijingremained the priorities for building investment, accounting for 73 percent of the total number of transactions in 2006, the same level as 2005.

"Encouragingly, investor interest in major cities elsewhere was also heightened. And there was growing investor interest in key cities of the Pearl River Delta such as Shenzhen and Guangzhou," he said.

In 2005 these cities registered only one building transaction, while in 2006 Shenzhen saw four and Guangzhou five, with their combined share of overall investment tripling from 6 percent in 2005 to 19 percent in 2006.

He said spectacular price hikes in major cities boosted by strong investor demand had prompted foreign funds to look for opportunities in southern China, in particular in the Pearl River Delta area, a key manufacturing base for southern China enjoying rapid growth in exports and logistics development.

(China Daily 03/02/2007 page15)