[photopress:gubeiforindexV1.jpg,full,alignright]A report on global real estate capital by Jones Lang LaSalle said China’s mainland attracted US$2.77 billion of cross-border investment in property in the first half of this year, more than doubling the US$1.04 billion in the same period of 2005.
The report said cross-border investment in China, which is still completely made up of inbound investment from overseas, accounts for 58 percent of the nation’s total direct real estate investment of US$4.75 billion.
The central government introduced a string of policies to strengthen the supervision of overseas investment in real estate in July. Institutions can now only invest in Chinese real estate through mainland incorporated enterprises. Investors with total investment of more than $10 million must have at least half of that as registered capital in the mainland enterprise.
Terence Tang, head of China Investments for LaSalle, said, ‘In the short-term, the new rules will require investors to re-examine their strategies and to try and work out suitable deal structures.’
The report said global sources funds were particularly active in Shanghai. By September 2006, a total of 15 properties worth approximately US$1.8 billion were sold in Shanghai. All were purchased by major overseas institutional investors originating from the United States, Europe or Asia.
Source: Shanghai Daily