Foreign capital increases by 66% in Beijing property market

(Chinanews.cn)
Updated: 2006-09-26 10:29

Foreign capital is flowing into the real estate market in Beijing in a rapid stream. Statistics show that in August, the actual use of foreign investment in local real estate market reached 470 million US dollars, 66 percent more than the same period last year. The real estate market attracted 36 new foreign projects during this period, 56.5 percent more than last year, and the contractual foreign capital reached 790 million US dollars, up 68.2 percent.


Beijing's Central Business District. Statistics show that in August, the actual use of foreign investment in local real estate market reached 470 million US dollars, 66 percent more than the same period last year. [newsphoto]

In last July, six central government ministries and ministerial-level commissions jointly issued a regulation on the access of foreign capital into Chinese real estate market and its management. The regulation sets down detailed rules regarding foreign capitalí»s access into Chinese real estate market, the management of foreign real estate developers in China, and restrictions on the purchase of houses by foreign institutions or individuals.

In spite of this regulation, foreign capital utilization still surged by 56.5% in Beijing real estate market in last August, indicating that the regulation had little effect.

Insiders say that since the new regulation was released at the end of last July, it would still take some time for the market to react. In addition, the Beijing municipal government has not laid down detailed rules to support the new policy, therefore foreign capital continues to flow into the property market in large amounts.

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