China’s real estate sector has expanded in terms of investment deals, with $25bn of property transactions in the first half of the year. However it has been mainly driven by domestic investors.
Deals by foreign firms declined by more than two-thirds over the past year.
Investment in Chinese real estate rose 78% in the first six months of the year compared to 2007, according to a report by property services firm DTZ.
However, the number of deals closed by foreign firms has declined substantially in the first six months of 2008 — down by more than 75% over the same period last year.
According to DTZ’s first half market review, a total of 318 major
transactions of $10 million or more were recorded in the first
six months of 2008, amounting to $25 billion. The vast majority involved site purchases for development.
Source: Private Equity Real Estate