Tightening measures hurt foreign investors

BEIJING - China's latest round of measures to curb property price growth has had a negative effect on foreign institutional investors, industry experts said on Thursday.

"We've investigated a number of projects since the last quarter of 2010. Though reducing market liquidity has made the price of assets more attractive, the tightening regulations have made investment much more difficult," said David Edwards, regional director at LaSalle Investment Management, a US real estate fund with $45 billion under management.

As the amount of foreign investment flowing into China's real estate sector soared last year, the Ministry of Commerce ordered local authorities to halt approval of some foreign property investments to stop speculative purchases. Local authorities are also required to strengthen their reviews of foreign exchange inflows for real estate transactions and documentation for land rights.