[photopress:beikingapartment_1.jpg,full,alignright]Last month China’s real estate prices rose yet again although government’s policy is starting to bite as the number of transactions involving foreign institutional investors declined. This due to restrictions on overseas investment.
The National Development and Reform Commission (NDRC) said in a statement that property prices rose 5.4 per cent in October. What is surprising is the sales prices of high-end and ordinary residential buildings saw year-on-year rises of 7.7 per cent and 6.4 per cent.
Beijing led the charge with the biggest price rise – a year-on-year growth of 10.7 percent. Shanghai was the one exception with a drop of 0.6 per cent compared to the same period last year.
According to a report by US-based consulting firm CB Richard Ellis the government rule restricting foreign investment in the real estate sector has seen a decline in the number of transactions involving foreign institutional investors. Ray Huang, a researcher with CBRE’s Investment Properties Department, said, ‘Some overseas investors are expected to remain on the sidelines and wait for a clear direction to emerge against the backdrop of present policy uncertainties.’
But it has not altogether stopped interest in develiping property. Fidel Ramos, ex-president of the Philippines, recently met Li Ruohong, president of Beijing King Resources Real Estate Co, a major villa developer, showing his interest in investing in China’s high-end real estate sector.
Source: China Daily