Foreign investors splurging on Chinese real estate
Foreign investment is rising in China's commercial real estate market, according to reports released by leading overseas commercial real estate services.
Last year's total foreign investment in China's major commercial real-estate projects surpassed 70 billion yuan (about 10.38 billion U.S. dollars), up over 50 percent year on year, said CBRE Group, a global leading commercial real estate service.
In 2018, foreign investors were also active buyers of China's office buildings. Foreign investment accounted for about 60 percent of Shanghai's major property deals in the fourth quarter of 2018, according to Savills, a world-leading property agent.
Reports also indicate that foreign investor demand for China's real estate market is expected to grow in 2019 based on recent studies on the fundraising of overseas developers.
CBRE Group also predicts that the invested assets of property funds eyeing China will rise over 35 billion dollars from 2019 to 2024, with investment mainly on value-added and opportunistic real estate projects.
In 2019, foreign investors are also showing greater interest in China's commercial property. On January 7, Singapore's CapitaLand announced it would acquire about 70 percent of Pufa Tower in Shanghai's central business district through a joint venture for 2.75 billion yuan.
"The acquisition suggests CapitaLand's increasing confidence in China's future economic development," said Luo Zhenyu, president of the Singapore property giant. "China's opening financial sector will further meet the growing demand of foreign investors' business and office expansions."