[photopress:real_estate_buildings.jpg,full,alignright]There appears to be no end. According to the National Bureau of Statistics (NBS) an increasing amount of foreign investment capital flowed into China’s real estate market between January and June.
Data from NBS show that in the first half of this year, realized foreign investment in the property sector accounted for 24.1% of the country’s total used foreign capital, 11 percentage points higher than the whole of last year.
Foreign investment in property projects averaged $7.04 million between January and February, up $3.61 million from last year’s average, while investment averaged $7.17 million between January and March, up $3.74 million.
During January and February, 18 foreign companies invested more than $2 million each in Southwest China’s Sichuan Province. More than half of them invested in the province’s booming real estate market. A total of $169.15 million realized foreign capital was recorded in the property sector, making up 79.3 percent of the province’s total.
The growth rate of foreign capital in China’s property sector surged 154.4% on a yearly basis in the first three months, 101.4 percentage points higher than all of last year. That was also 127.5 percentage points higher than the growth rate of total investment in the property sector during the same period.
Growing foreign investment in the property sector may push along unbalanced development of housing supply in China, as most, if not all, of the investments go to medium-to-high-end housing markets.
About one third of China’s vacant commodity residential buildings are more than 100 square meters which places them in the luxury bracket.
Source: China Daily