Foreign investment in real estate soars
(Xinhua)
Updated: 2006-10-26 11:32
Foreign investment in the Chinese real estate sector soared to 1.44 billion
U.S. dollars in the first half year, 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.
The figure mainly refers to money used to purchase buildings and does not
include purchases of land for real estate development.
Statistics show
that capital from North America and North Asia represents the lion's share of
the investments.
Last year, capital from North America accounted for 43
percent of investments in China's real estate properties. The figure rose to 51
percent in the first half year.
North Asian investment increased from
last year's one percent to 24 percent in the first half year while capital from
Southeast Asia dropped from last year's 36 percent to 19 percent, said the
report.
Beijing and Shanghai remain the priority choices of foreign real
estate investors. Beijing attracted 49 percent of the investment, followed by
Shanghai which claimed 45 percent of the money.
The percentage of
foreign investment in advanced residential buildings rose from last year's seven
percent to 36 percent in the first half year.
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 stop
some purchases, said analysts with CB Richard Ellis. (For more biz stories, please visit Industry Updates)
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