THE northeastern city of Dalian in Liaoning province has turned down applications by 11 local and foreign developers to build luxurious high-rises and hotels. Officials said the move was in line with authorities' determination to control luxury development. Director of the Dalian Municipal Commission of Foreign Economic Relations and Trade, Hung Yuandong said the move would ensure long-term stability. 'But we will encourage foreign investors to invest in domestic housing projects,' he said. Dalian authorities are hoping to interest overseas developers in the 200-hectare Xinhai Bay New Zone. Officials have designated it as a commercial, financial, residential and tourist zone. Foreign investors in the city's 35 major projects have invested about 13.1 billion yuan (about HK$12.02 billion) over the last two years. About 80 per cent of the investment was from Hong Kong interests, said Su Jie of the Dalian Municipal Management Office of Real Estate Development. He said local developers usually invested in domestic housing projects which yielded lower returns.
