[photopress:Beijing_real_estate.gif,full,alignright]Real estate in China continued to attract an increasing level of foreign investment in 2006, particularly cities in the Pearl River Delta.
According to the Asia-Pacific Property Market Overview released by international property adviser Debenham Tie Leung, the total number of building transactions involving foreign investment jumped 38% from 2005, while the total consideration surged 67% from RMB17.7 billion to RMB29.5 billion.
Alva To, director of Consulting and Research at Debenham Tie Leung, said, ‘In 2006, there were 322 nationwide real estate investments with a unit value of $10 million or more, with a total sum of RMB157.747 billion. These figures were up by 22% and 33% compared to 2005.’
85% were land purchases for real estate development, while the remaining 15% were building purchases. Compared with 2005, the number of land transactions increased by 19% while that of buildings increased by 44%.
Alva To said, ‘The source of funds for these two types of real estate investment also differs substantially. While domestic funds are major land buyers, accounting for 80% of site transactions, foreign funds took the stage in building transactions by executing 82% of the deals.
‘As transactions and investment amounts surge in tandem, it’s clear investors are keen to tap this rapidly expanding sector especially in search of ready-built properties that will yield attractive returns on rising prices and the renminbi’s potential to appreciate.’
Source: China Daily