[photopress:real_estate_Remy_Chan.jpg,full,alignright]A revised list of Guidelines on Foreign Investment released by the central government are thought by some experts not likely have any significant impact on the country’s real estate market.
As reported, effective December 1, foreign funds being funneled into housing agents and brokerages will be restricted and foreign capital flowing into the development of large-scale land lots and the construction and operation of high-end hotels, villas, office towers and exhibition and convention centers will also face restrictions.
However, it is suggested that foreign investment accounted for just 4.4% of total real estate investment in Shanghai in 2006, the impact on the overall market is not likely to be significant. This figure is truly amazing and needs an awful lot of checking before being accepted as gospel.
It is widely agreed that further elaboration on the new policy, particularly the newly promulgated areas of brokerage and agency business, will need to be evaluated to see its real impact on foreign investment.
Remy Chan, regional director of Asia Pacific at Jones Lang LaSalle, one of the top five real estate service providers in the world, said, ‘I can’t see any impact on foreign investment at the current stage until further details and practical guidelines are introduced by the government.’