Biz News Flash

Mainland properties lure foreign capitals

By Hao Yan (chinadaily.com.cn)
Updated: 2011-04-06 11:24

The Chinese properties market is becoming a major destination for investors around the world. And the Asia-Pacific market may attract $104 billion this year, China Economic Weekly reported Wednesday.

Related readings:  Beijing wants private investments in public housing  China penalizes property developer for pushing up housing prices  China allocates hefty funds to develop low-rent housing  Local governments to be held accountable for curbing housing prices

DTZ Holdings Plc said Tuesday the Asia-Pacific market this year may witness a 45-percent surge in capital investment compared to investments in mid-2010, the report said. Between March 1 and 24, the combined number of newly founded foreign investment companies and mainland companies receiving more foreign capital surged to 39 in China's real estate market, according to data from the Ministry of Commerce.

"When a huge amount of money is entering the mainland market, it needs a low-risk investment portfolio," an anonymous foreign property investor said.

He suggests that China's commercial properties market, with a low price, is a relatively steady market hardly affected by government policies.

President of Soho China Ltd Pan Shiyi said previously, the commercial property market is not influenced by macro-control policies – as the price is not related to residents – even when the capital flowed into this market and pushed up the price.